Case Summary (G.R. No. 254570)
Overview of the Case
The case revolves around a petition for certiorari filed by Bernadette Lourdes B. Abejo, who challenges the Commission on Audit (COA) Decision No. 2020-127, which required her and other officers of the ICAB to return a total of P236,500.00 in disallowed Collective Negotiation Agreement (CNA) Incentives for 2011. The incentives were deemed disallowed due to alleged violations of relevant DBM circulars regarding disbursement rules.
Background of ICAB's CNA Incentives
From 2008 to 2011, ICAB granted CNA Incentives to its employees based on the provisions of DBM Budget Circular No. 2006-1, which outlined that such incentives should only be paid once at the end of the fiscal year. However, in December 2011, DBM Circular No. 2011-5 was issued, establishing a limit of P25,000.00 per employee for the CNA Incentives. The payments made by ICAB were found to exceed this limit and were issued before the end of 2011, leading to a disallowance from the COA.
Findings of COA Audit
The COA audit team found that ICAB had made two payments of CNA Incentives within the same fiscal year and that these payments exceeded the set limit. The COA issued Notice of Disallowance No. 2012-002-101, deeming the excess incentive payments non-compliant with DBM circulars. Petitioner Abejo contended that the payments were made in good faith based on existing savings and that she was unaware of the implications of the new circular until it was posted online in January 2012.
Ruling of the COA
The COA upheld the Notice of Disallowance, asserting that the ICAB's actions violated the stipulations in DBM BC No. 2006-1, which required that CNA incentives be processed after the fiscal year-end. The COA rejected Abejo’s arguments concerning the timing of the circular's effectivity and noted her failure to comply with existing regulations.
Threshold Issues
The primary questions addressed included: (1) the validity of the disallowance of the CNA Incentives, (2) the solidary liability of Abejo as the approving authority, and (3) the personal liability of Abejo regarding the excess amount received.
Court's Ruling on Validity of Disallowance
The Court affirmed the COA's decision, agreeing that the CNA Incentives disbursed in excess of the stipulated limits and prior to the close of the fiscal year warranted disallowance. The approval of dual payments was seen as a clear breach of DBM regulations.
Solidary Liability of the Approving Authority
Despite affirming the disallowance, the Court clarified that Abejo was not solidarily liable to return the entire disallowed sums without evidence of bad faith or gross negligence. The Court referenced precedents, emphasizing that public officials acting in good faith and within the bounds of reasonable interpretation of guidelines are generally shielded from full liability.
Assessment of Gross Negligence
While the COA asserted that Abejo exhibited gross negligence by failing to adhere to the guidelines, the Court found no evidence supporting a claim of gross negligence or bad faith. It reasoned that structural ambiguities in the regulations at the time allowed for a reasonable interpretation of the guidelines by Abejo.
Interpretation of Rules on Return
Combining past rulings, the Court refined the rules regarding the return of disallowed payments. It
...continue readingCase Syllabus (G.R. No. 254570)
The Case
- This petition for certiorari challenges Decision No. 2020-127 dated January 27, 2020, from the Commission on Audit (COA).
- The COA held Bernadette Lourdes B. Abejo, Executive Director of the Inter-Country Adoption Board (ICAB), jointly responsible with other ICAB officials for the return of disallowed Collective Negotiations Agreement (CNA) Incentives amounting to P236,500.00 for the year 2011.
Antecedents
- From 2008 to 2011, ICAB had been granting CNA Incentives to its employees based on Department of Budget and Management (DBM) Budget Circular No. 2006-1 and the CNA.
- DBM BC No. 2006-1 specifies that incentives are to be paid as a one-time benefit after the end of the fiscal year once programs/projects have been completed.
- In December 2011, DBM BC No. 2011-5 was issued, limiting CNA Incentives to P25,000.00 per qualified employee.
- Prior to this issuance, no fixed limit existed, and the amount was based on annual savings.
- An audit revealed that ICAB paid CNA Incentives twice for 2011 and exceeded the P25,000.00 limit.
- ICAB made an initial payment on November 28, 2011, and a final payment on December 23, 2011, believing all projects had been completed.
- The audit team disallowed the excess payment of P236,500.00 based on these findings.
Findings of the Audit Team
- ICAB violated provisions of DBM BC No. 2006-1 by paying incentives twice and exceeding the allowed amount.
- Petitioner claimed ignorance of the impending issuance of DBM BC No. 2011-5, which was only posted online in January 2012.
- The audit issued a Notice of Disallowance, listing th