G.R. No. 143596 - Leynes vs. Commission on Audit

Petitioner Judge Tomas C. Leynes is the presiding judge of the Regional Trial Court of Calapan City, Oriental Mindoro, Branch 40, and was formerly the sole presiding judge of the Municipal Trial Court of the Municipality of Naujan, Oriental Mindoro.
His compensation structure included drawing his salary and representation and transportation allowance (RATA) from the Supreme Court’s budget, while he also received a monthly allowance of P944 from the local funds of the municipality since 1984.

On March 15, 1993, the Sangguniang Bayan of Naujan, via Resolution No. 057, sought opinions from the Provincial Auditor and the Provincial Budget Officer regarding any budgetary limitations on granting a monthly allowance to petitioner Judge Leynes.
On May 7, 1993, the Sangguniang Bayan unanimously approved Resolution No. 101, increasing the petitioner’s monthly allowance from P944 to P1,600 (an increase of P656), effective May 1993.
The municipal government secured a supplemental budget for the additional allowance which was subsequently approved by the Sangguniang Panlalawigan and the Office of Provincial Budget and Management of Oriental Mindoro.
In 1994, the local government reiterated this grant by providing for the P1,600 monthly allowance in its annual budget, again approved by the Sangguniang Panlalawigan and the corresponding budget office.

On February 17, 1994, Provincial Auditor Salvacion M. Dalisay issued a letter directing the Municipal Mayor and the Sangguniang Bayan of Naujan to cease the payment of the P1,600 monthly allowance.
Auditor Dalisay’s stance was based on Section 36 of RA 7645 (the General Appropriations Act of 1993) and National Compensation Circular (NCC) No. 67 dated January 1, 1992, which provided that RATA must be paid from the programmed appropriations of the national agency and that no one may collect RATA from more than one source.
Petitioner’s argument was that he already received RATA from the Supreme Court and that the additional allowance from the municipality amounted to dual collection.

Petitioner appealed to COA Regional Director Gregoria S. Ong, who upheld the Provincial Auditor’s opinion and added that Resolution No. 101 failed to comply with Section 3 of Local Budget Circular (LBC) No. 53 dated September 1, 1993.
LBC No. 53 stipulated preconditions for local government units (LGUs) when granting allowances to national government officials, including ensuring that allowances do not conflict with or duplicate benefits provided by the national government.
Consequently, the COA ultimately issued a disallowance of the additional monthly allowance, and petitioner received this additional payment only from May 1993 to January 1994.

Dissatisfied with the adverse resolution by both the COA Regional Director and the COA’s decision dated September 14, 1999, petitioner filed a petition for certiorari under Rule 65 of the Rules of Court, targeting the COA’s decisions.
Petitioner raised several assignments of error concerning the validity of the municipal resolution, the scope of the LGU’s legislative power to grant such allowances, the authority of the Department of Budget and Management (DBM) through its circulars, and the alleged implied repeal or modification of Section 447(a)(1)(xi) of the Local Government Code of 1991.

Whether Resolution No. 101, Series of 1993, of Naujan, Oriental Mindoro, which granted an additional allowance of P1,600 to the Municipal Trial Judge, is valid under the law.
Whether the power conferred on municipal governments under Section 447 of the Local Government Code of 1991 to grant additional allowances and benefits to national government officials (including judges) is explicit and unconditional except for the limitation of available funds.
Whether the DBM, by issuing budget circulars, may restrict a municipality’s legislative power to provide additional allowances and benefits to its stationed or assigned national government employees.
Whether Section 447(a)(1)(xi) of the Local Government Code of 1991 was expressly or impliedly repealed or modified by RA 7645 (the General Appropriations Act of 1993) and the administrative guidelines embodied in NCC No. 67 and LBC No. 53.
Whether petitioner Judge Leynes was legally entitled to receive the additional P1,600 monthly allowance granted by the Municipality of Naujan.