Title
Re: COA Opinion on Computation of Appraised Value of Properties Purchased by Supreme Court Justices
Case
A.M. No. 11-7-10-SC
Decision Date
Jul 31, 2012
Dispute over appraisal formula for retired justices' property purchases; SC upheld fiscal autonomy, rejecting COA's interference.

Case Digest (A.M. No. 11-7-10-SC)
Expanded Legal Reasoning Model

Facts:

  • COA Opinion and Underpayment Findings
    • On June 8, 2010, the Commission on Audit (COA) Legal Services Sector issued Opinion No. 2010-035 finding that five retired Supreme Court justices underpaid a total of ₱221,021.50 when purchasing government properties assigned to them during their tenure.
    • The COA compared valuations based on:
      • CFAG Joint Resolution No. 35 (Constitutional Fiscal Autonomy Group guidelines) as applied by the Supreme Court Property Division; and
      • COA Memorandum No. 98-569-A (Revised Guidelines on Appraisal of Property) which yielded higher appraised values.
  • Recommendations of the Office of Administrative Services
    • In memoranda dated August 10, 2010 and July 14, 2011, Atty. Eden T. Candelaria, Deputy Clerk of Court and Chief Administrative Officer, urged the Supreme Court to insist on using the CFAG formula, citing:
      • Prior COA acquiescence in CFAG-based appraisals for retiring Court of Appeals justices; and
      • The Constitution’s grant of fiscal autonomy to the Judiciary, precluding COA substitution of the Court’s chosen policy.

Issues:

  • Scope of COA Authority versus Judicial Fiscal Autonomy
    • Can the COA, in a post-audit examination, override the Supreme Court’s in-house appraisal formula for property disposal granted to retired justices?
    • Must the COA apply its Memorandum No. 98-569-A formula despite an en banc resolution of the Supreme Court adopting CFAG Joint Resolution No. 35?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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