Case Digest (G.R. No. 172174)
Facts:
Elena A. Estalilla, then Municipal Treasurer of Cabuyao, Laguna, was listed as liable in Notices of Disallowance for payments totaling P35,591,200.00 for 2004 garbage collections that had been charged against the 2005 appropriation. She certified as to cash availability and claimed that she merely executed her treasurer’s certification duties and had not received the Audit Observation Memoranda, while admitting receipt of the notices but failing to appeal within the COA’s six-month period.After the COA dismissed her appeal for being filed out of time and upheld her solidary liability, Estalilla sought relief via certiorari, contending that filing a motion for reconsideration would have been useless due to the COA’s consistent rejection and that her certification did not justify personal liability absent proof of false certification.
Issues:
- Whether the COA committed grave abuse of discretion amounting to lack or excess of jurisdiction in dismissing Estalilla’s petition for re
Case Digest (G.R. No. 172174)
Facts:
- Contractual background and approval
- The then Municipality of Cabuyao in the Province of Laguna entered into a Contract for the Hauling of Garbage with J.O. Batallones Trading and Construction on March 18, 2003 and on May 1, 2005.
- The Sangguniang Bayan of Cabuyao approved the contracts through Pambayang Kapasyahan Bilang 048-2004 and Pambayang Kapasyahan Bilang 067-2005.
- Audit findings and issuance of Notices of Disallowance
- After audit, the Audit Team Leader (ATL) of the Municipality of Cabuyao issued Audit Observation Memoranda (AOM) dated February 16, 2003 and September 13, 2005, discovering that payments totaling P35,591,200.00 for the 2004 garbage collections had been charged against the 2005 appropriation.
- The Regional Cluster Director Eden D. Tingson Rafanan later issued Notice of Disallowance (ND) No. 2008-0430-101(05) dated November 18, 2008 in the amount of P18,676,200.00 and ND No. 2008-044-101(04) dated November 25, 2008 in the amount of P16,915,000.00.
- The notices grounded disallowance on the finding that the expenditures were improperly charged against the 2005 annual budget, invoking Section 305(a), Section 305(f), and Section 350 of Republic Act No. 7160 (The Local Government Code) in relation to Section 85 of Presidential Decree No. 1445 (Auditing Code of the Philippines).
- The NDs named multiple persons as liable, including Elena A. Estalilla, as follows:
- Proceso D. Aguillo (former mayor) — approved payment of P16,915,000.00.
- Nila G. Aguillo (former mayor) — approved payment of P18,676,200.00.
- Felix L. Galang (former municipal accountant) — certified completeness and propriety of supporting documents.
- Marcelina B. Marana (former municipal budget officer) — allowed payment without appropriation.
- Elena A. Estalilla (municipal treasurer) — certified as to cash availability.
- Finality and execution proceedings before COA
- After the named individuals, including Estalilla, failed to appeal the NDs within the six-month period, the COA Regional Office issued Notices of Finality of Decision (NFDs) on March 26, 2012.
- The corresponding COA Orders of Execution (COEs) were issued on April 2, 2012.
- Estalilla’s omnibus motion and COA dismissal
- On June 26, 2012, Elena A. Estalilla filed an Omnibus Motion to Lift the NFDs and COEs and Admit Appeal Memorandum.
- Estalilla denied having received the AOM, but admitted having received the NDs.
- She pleaded for compassion and attributed her inability to timely appeal to her preoccupation with other disallowances issued against her.
- The COA Regional Office denied the omnibus motion mainly for failure to appeal within the six-month period provided by Section 2 and Section 4 of the 2009 Revised Rules of Procedure of the COA.
- COA promulgated the assailed decision on December 29, 2014, dismissing Estalilla’s appeal for being filed beyond the six-month reglementary period.
- COA observed that Estalilla had not tendered compelling reasons to relax the doctrine on the immutability of judgment.
- Estalilla’s arguments in petition for certiorari
- Estalilla contended that COA committed grave abuse of discretion amounting to lack or excess of jurisdiction when it dismissed her petition for review.
- She argued that her failure to file a timely appeal was not motivated by bad faith, inexcusable negligence, or reckless disregard of the rules.
- She claimed she lost track of the NDs due to being preoccupied with two other NDs.
- She asserted she had not been apprised of the AOM.
- She stated that the disallowed amount (P35,591,200.00) arose from a budgetary and accounting error or technicality in which she had no participation or responsibility.
- She pointed to the municipal accountant’s alleged failure to properly obligate the corresponding appropriation.
- She argued that her certification only indicated sufficient cash to cover the proposed disbursement.
- She maintained that the hauling contracts had been authorized and approved by the Sangguniang Bayan and that the contractor performed in good faith, allegedly entitling it to compensation.
- She argued that charging her would unjustly enrich the Government because the municipality and its constituents had already benefitted from the garbage hauling services.
- She further invoked Section 351 of the Local Government Code and Section 103 of P.D. No. 1445, arguing she was not directly responsible.
- She relied on paragraph 16.1, Section 16 of the Rules and Regulations on the Settlement of Accounts (RRSA) for guidelines on determining liability.
- She argued that certifying to (a) availability of appropriation and (b) availability of cash were different conditions for different offices.
- She stated that her responsibility to certify availability o...(Subscriber-Only)
Issues:
- Procedural issue on certiorari viability despite absence of a motion for reconsideration
- Whether COA committed grave abuse of discretion amounting to lack or excess of jurisdiction by dismissing Estalilla’s petition for review despite her failure to file a motion for reconsideration, considering her claim that such filing would have been useless.
- Substantive issue on personal liability of a municipal treasurer who certified cash availability
- Whether COA committed grave abuse of discretion amounting to lack or excess of jurisdiction in holding Estalilla personally liable for the disallowed amount of P35,591,200.00, despite her alleged limited participation as municipal treasurer who certified c...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)