Case Digest (G.R. No. 199752)
Case Digest (G.R. No. 199752)
Facts:
Lucena D. Demaala v. Commission on Audit, G.R. No. 199752, February 17, 2015, the Supreme Court En Banc, Leonen, J., writing for the Court. Petitioner Lucena D. Demaala (former mayor of Narra, Palawan) sought annullment of Commission on Audit (COA) Decision No. 2008-087 (Sept. 22, 2008) and COA Resolution No. 2011-083 (Nov. 16, 2011) that affirmed with modification the COA Legal and Adjudication Office (LAO) Local Decision No. 2006-056 and sustained Notice of Charge (NC) No. 2004-04-101.Provincial Ordinance No. 332‑A, Series of 1995 (Palawan) — specifically Chapter 5, Section 48 — authorized collection of a special education fund (SEF) additional real property levy at 0.5%. Pursuant to that ordinance, the Municipality of Narra, with petitioner as mayor, collected SEF at 0.5% through the municipal treasurer. On post‑audit, Audit Observation Memorandum No. 03‑005 (Aug. 7, 2003) questioned the reduced rate and Regional Cluster Director Rodolfo C. Sy issued NC No. 2004‑04‑101 (Aug. 30, 2004) charging a deficiency of P1,125,416.56 on the theory that Section 235 of Republic Act No. 7160 (the Local Government Code) prescribes a 1% SEF rate.
The Municipality moved for reconsideration before the regional office, which was denied, and appealed to the COA LAO; LAO denied the appeal in Local Decision No. 2006‑056. The COA Central Office in Decision No. 2008‑087 denied Demaala’s appeal, modified the LAO decision by adding former Vice‑Governor Joel T. Reyes and members of the Sangguniang Panlalawigan as jointly and severally liable, and directed issuance of supplemental notice(s) of charge. Motions for reconsideration to the COA were denied in Decision No. 2011‑083. Petitioner then filed the present petition for certiorari with the Supreme Court; respondent COA filed a Comment (Apr. 20, 2012), petitioner filed a Reply (Sept. 6, 2012), and memoranda were submitted by the parties.
Issues:
- Did the Commission on Audit commit grave abuse of discretion amounting to lack or excess of jurisdiction in finding a deficiency in Narra’s collections of the additional levy for the special education fund, and may a municipality or province lawfully levy the SEF at less than 1% under Section 235 of the Local Government Code?
- Assuming a deficiency existed, did the Commission on Audit commit grave abuse of discretion in holding petitioner personally liable for the deficiency?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)