Title
Feliciano vs. Commission on Audit
Case
G.R. No. 147402
Decision Date
Jan 14, 2004
Leyte Water District challenged COA's audit jurisdiction and fees; SC upheld COA's authority, ruling LWDs as GOCCs and declaring PD 198 unconstitutional.

Case Digest (G.R. No. 147402)
Expanded Legal Reasoning Model

Facts:

  • Case Background
  • Engr. Ranulfo C. Feliciano, in his capacity as General Manager of the Leyte Metropolitan Water District (LMWD), filed a petition for certiorari under Rule 64 of the 1997 Revised Rules of Court.
  • He sought to annul:
    • The Commission on Audit (COA) Resolution dated January 3, 2000 denying his request to cease all audit services and stop charging auditing fees to LMWD.
    • The COA Decision dated January 30, 2001 denying his Motion for Reconsideration.
  • Antecedent Facts
  • A Special Audit Team from COA Regional Office No. VIII conducted an audit of LMWD’s accounts.
  • On July 19, 1999, COA demanded payment of auditing fees from LMWD.
  • On October 12, 1999, petitioner replied, refusing payment, citing:
    • Sections 6 and 20 of Presidential Decree (PD) 198, as amended.
    • Section 18 of Republic Act (RA) 6758.
  • On October 19, 1999, petitioner formally requested refund of all auditing fees LMWD previously paid.
  • COA Chairman Gangan issued the adverse Resolution on January 3, 2000; the Motion for Reconsideration was denied on January 30, 2001.
  • On March 13, 2001, petitioner filed the instant petition, bolstered by resolutions from the Visayas Association of Water Districts (VAWD) and the Philippine Association of Water Districts (PAWD).

Issues:

  • Whether a Local Water District (LWD) created under PD 198, as amended, is a government-owned or controlled corporation (GOCC) with an original charter, thus subject to COA’s audit jurisdiction.
  • Whether Section 20 of PD 198 prohibits COA auditors from auditing LWDs.
  • Whether Section 18 of RA 6758 prohibits COA from charging auditing fees to GOCCs such as LWDs.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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