Case Digest (A.C. No. 2024)
Case Digest (A.C. No. 2024)
Facts:
Philippine Health Insurance Corporation v. Commission on Audit, G.R. No. 253043, June 13, 2023, the Supreme Court En Banc, Kho, Jr., J., writing for the Court. Petition under Rule 64 in relation to Rule 65 for certiorari and injunctive relief assails COA Decision No. 2018-175 (Jan. 29, 2018) and COA Proper Resolution (Jan. 30, 2020) which affirmed a prior Cluster Director disallowance denying salaries, allowances and benefits paid to Atty. Valentin C. Guanio for the period September 1, 2009 to December 31, 2010 totaling P1,445,793.69.Pursuant to Republic Act No. 7875, the PhilHealth Board adopted Board Resolution No. 1135 (May 29, 2008) creating the position of Corporate Secretary (Salary Grade 28) and later approved Board Resolution No. 1301 (July 30, 2009) appointing Atty. Guanio effective September 1, 2009. PhilHealth paid the contested salaries and benefits during September 2009–December 2010.
A post-audit produced Audit Observation Memorandum No. 10-014 (May 24, 2010) recommending that PhilHealth seek the imprimatur of the Department of Budget and Management (DBM) and submit the appointment to the Office of the President through DBM. Supervising Auditor Elena L. Agustin issued Notice of Disallowance No. HO 11-001 (May 19, 2011) alleging the creation, appointment and payments lacked DBM authority; the COA named approving/certifying officers, the PHIC Board, and payee Atty. Guanio as liable.
PhilHealth appealed to the COA Cluster Director (COA CGS A), which in Decision No. 2012-16 (Jan. 16, 2013) denied the appeal and affirmed the disallowance. PhilHealth sought review before COA Proper; in Decision No. 2018-175 (Jan. 29, 2018) COA Proper affirmed the disallowance, held approving and certifying officers and the Board solidarily liable to refund, but absolved Atty. Guanio as a de facto employee paid in good faith. PhilHealth’s partial motion for reconsideration was denied by COA Proper (Jan. 30, 2020) with Chairperson Michael G. Aguinaldo dissenting. PhilHealth filed the present petition before the Supreme Court; its application for temporary relief was rendered moot by the Court’s merits disposition.
Issues:
- Did the COA Proper commit grave abuse of discretion in affirming the disallowance of the salaries, allowances and benefits paid to Atty. Guanio?
- If the disallowance was proper, which persons are civilly liable to return the disallowed amounts under prevailing rules on return?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)