Facts:
Helen P. Macasaet entered into eight
Contracts of Services with the
Supreme Court of the Philippines, for her rendition of
Information and Communications Technology (ICT) consultancy services in relation to the
Enterprise Information Systems Plan (EISP) for the years 2010 to 2014, and for continuing implementation and related ICT and computerization projects. The EISP was intended to provide the framework of the Judiciary’s ICT initiatives, and the Court had earlier approved the EISP submitted by
INDRA Sistemas S.A. through an En Banc Resolution in
A.M. No. 08-11-09-SC. Because the 2009 EISP budget did not cover nationwide technical infrastructure, connectivity, and network security prerequisites, the Court required an ICT consultant to review the status of EISP implementation and related ICT and computerization projects. The
Bids and Awards Committee for Consultancy Services (BAC-CS) initially treated the procurement as highly technical and primarily confidential or policy-determining, citing
Section 53.7 of the 2009 Revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184. It recommended three consultants to the Court through the Office of the Chief Justice, and after reviewing their qualifications, the Office of the Chief Justice, acting through
Atty. Michael B. Ocampo and
Mr. Edilberto A. Davis, recommended Ms. Macasaet as the most qualified, which recommendation was approved by the then Chief Justice. On
1 October 2013, the Court, “represented” by
Atty. Eden T. Candelaria in her capacity as Chief Administrative Officer and Deputy Clerk of Court, entered into the first six-month Contract of Services with Ms. Macasaet at
P600,000.00 payable in six equal monthly installments. On
23 May 2014, the Court entered into a second six-month Contract of Services with Ms. Macasaet at
P250,000.00 per month inclusive of applicable taxes, and this was followed by multiple extensions, resulting in a total of eight Contracts of Services with Ms. Macasaet, with total consultancy fees of
P11,100,000.00, less whatever taxes were withheld. The Court issued an En Banc Resolution on
16 September 2014 approving the updated EISP work plan and budget (2014 to 2019) as the output of the earlier Contract. The legality of the Contracts arose in an administrative matter initially connected to a request for documents in relation to an impeachment complaint. Through a Resolution dated
19 September 2017, the Court referred the legality of the Contracts of Services to the
Office of the Chief Attorney (OCAt) and required former Chief Justice Sereno to comment. The
OCAt Report dated
6 November 2017 recommended declaring the Contracts void for failure to comply with procurement rules, absence of required documentary requirements, violations involving compensation ceiling and budget/appropriation linkage, and noncompliance with accounting requirements pertaining to the
Certificate of Availability of Funds (CAF). After the Court required additional comments from the
BAC-CS, Ms. Macasaet, and the signatory officers, the Court later resolved that all eight Contracts of Services were void ab initio and directed Ms. Macasaet to reimburse the amounts received. In dissent,
Justice Caguioa maintained that the Contracts were valid, that the procurement and renewals complied with the rules on negotiated procurement of highly technical consultants, that the signatory had authority, and that the CAF/appropriation issues did not warrant nullity.
Issues:
Whether the
eight Contracts of Services entered into by the
Supreme Court, through negotiated procurement, with
Ms. Helen P. Macasaet for ICT consultancy services relating to the
EISP were
legal and therefore binding, or whether they must be declared
void ab initio.
Ruling:
Ratio:
Doctrine: