Case Digest (G.R. No. 205490)
Facts:
Power Sector Assets and Liabilities Management Corporation represented by Mr. Emmanuel R. Ledesma, Jr., and the concerned and affected officers and employees of PSALM v. Commission on Audit, G.R. No. 205490 and G.R. No. 218177, September 22, 2020, the Supreme Court En Banc, Lazaro-Javier, J., writing for the Court.Petitioners are PSALM (in G.R. No. 205490 represented by President and CEO Emmanuel R. Ledesma, Jr.; in G.R. No. 218177 represented by Officer‑in‑Charge Maria Lourdes S. Alzona) and concerned PSALM officers and employees; respondent is the Commission on Audit (COA). The petitions assail COA-Commission Proper (COA-CP) Decision No. 2012-270 (Dec. 28, 2012) disallowing the 2009 Medical Assistance Benefit (MAB) of P5,586,999.60 and COA-CP Decision No. 2014-036 (Mar. 5, 2014) (and its denial of reconsideration, Jan. 26, 2015) disallowing the 2008 MAB of P5,702,517.42.
The measures at issue trace to national issuances authorizing an annual medical check‑up program—Civil Service Commission Memorandum Circular No. 33 (1997) and Administrative Order No. 402 (AO 402, 1998)—which prescribe initial diagnostic procedures for government employees and allow increases “upon availability of funds.” Pursuant to those directives, PSALM’s Board approved a Health Maintenance Program by Board Resolution No. 06-46 (Aug. 2, 2006) offering diagnostic exams; later Resolutions No. 07-67 (Oct. 31, 2007) and No. 2008-1124-004 (Nov. 24, 2008) expanded benefits to include purchase/reimbursement of prescription and over‑the‑counter drugs, consultation and diagnostic fees, certain dental and optometric procedures, reimbursements for emergency/special cases, immunizations, and extended coverage to employees’ dependents and some Board members. PSALM funded these from its Corporate Operating Budget.
On January 22, 2009 a State Auditor issued an Audit Observation Memorandum finding lack of legal and factual basis for the expanded 2008 MAB; COA issued ND No. 2008‑002 (Apr. 23, 2009) and later ND No. 10‑001‑(2009) (Mar. 12, 2010) disallowing the 2008 and 2009 expanded MABs. PSALM appealed to the COA‑Office of the Cluster Director (Corporate Government Sector — Cluster B). By Decisions No. 2011‑003 (Apr. 1, 2011) and No. 2011‑005 (June 2, 2011) the COA Cluster Director affirmed the disallowances. On further appeal the COA‑CP affirmed: Decision No. 2012‑270 (Dec. 28, 2012) as to 2009 and Decision No. 2014‑036 (Mar. 5, 2014) as to 2008; the latter’s motion for reconsideration was den...(Subscriber-Only)
Issues:
- Did the COA‑CP act with grave abuse of discretion amounting to lack or excess of jurisdiction when it affirmed the disallowance of the 2008 and 2009 expanded Medical Assistance Benefits (MABs) paid to PSALM officers, employees, and their dependents?
- Are the PSALM officers who authorized the MABs and the employees who received them liable to re...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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