Case Summary (G.R. No. 257871)
Antecedents and Procurement Process
On May 10, 2011, Arasid, acting as the President of SSC, submitted a memorandum requesting the SSC Board of Trustees (BOT) to approve a resolution for the purchase of necessary equipment, allocating PHP 20,000,000.00 from the college's local income. The BOT complied and issued a resolution on May 12, 2011, to this effect. Subsequently, the Bids and Awards Committee (BAC), chaired by Amilhamja and including other petitioners, approved an Invitation to Bid, which was published in the Zamboanga Star.
On May 25, 2011, only one prospective bidder, State Alliance Enterprises, Inc. (SAEI), responded. The BAC recommended negotiating with SAEI after concluding that the bid was advantageous. On May 30, 2011, SSC entered a contract with SAEI for a total price of PHP 22,000,000.00, despite concerns raised by parents and students regarding potential irregularities in the procurement process.
Notice of Disallowance and Investigation Findings
An investigation by the Commission on Audit (COA) revealed several deficiencies in the procurement process: failure to comply with Republic Act No. 9184 (the Government Procurement Reform Act), inadequate public bidding, insufficient evidence of compliance with posting requirements, and a failure to declare a bidding failure when only one bid was received. A Notice of Disallowance was subsequently issued by COA on June 15, 2015, citing various accounting and budgetary violations.
Ombudsman Ruling
In the Ombudsman’s Decision dated February 5, 2018, the petitioners were found liable for Grave Misconduct and were dismissed from service, while Pescadera was dismissed from the charges due to his retirement before the complaint was filed. The Ombudsman affirmed that the petitioners violated procurement laws, emphasizing the absence of bidding documents, lack of compliance with publication and eligibility requirements, and unauthorized agreement amendments.
Court of Appeals Ruling
The Court of Appeals (CA) upheld the Ombudsman’s decision on September 2, 2020, affirming that the petitioners did not demonstrate proof of conducting a competitive bidding process. The CA modified the ruling regarding Arasid, finding him guilty of Gross Neglect of Duty rather than Grave Misconduct.
Arguments of Petitioners
The petitioners contended that they acted in good faith and with due diligence, asserting that the BOT had authorized the procurement. They maintained that they complied with necessary procedures and performed their duties based on the hope of enhancing educational resources for students. They argued further that their compliance with publication norms was adequate and that the expedited procurement process was justifiable given the circumstances.
Arguments of Respondent
The respondent asserted that the petitioners exhibited substantial lapses in the procurement process, failing to prepare requisite bidding documents and properly conduct the bidding procedures as mandated by law. They argued that there was no evidence of compliance with procurement safeguards and maintained that the procurement was marred by inadequacies, constituting deliberate misconduct rather than simply negligent actions.
Court's Ruling
The Court ruled that the CA erred in desi
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Background and Parties Involved
- Petitioners: Hja Ferwina Jikiri Amilhamja, Anang Agang Hawang, Nenita Pino Aguil, Audie Sinco Janea, and Abdurasa Sariol Arasid.
- Respondent: Ombudsman-Mindanao, Field Investigation Unit, represented by Liwayway Sumagaysay-Rondina.
- The petitioners assailed the decisions of the Court of Appeals and the Office of the Ombudsman regarding administrative charges filed against them.
Facts and Antecedents
- Arasid, as President of Sulu State College (SSC), requested the SSC Board of Trustees (SSC-BOT) to authorize purchase of physics, computer engineering, and agricultural equipment.
- SSC-BOT approved Resolution No. 19, allocating PHP 20,000,000.00 for purchase.
- SSC's Bids and Awards Committee (BAC), chaired by Amilhamja and composed of the other petitioners and Pescadera, initiated bidding process including publication of Invitation to Apply for Eligibility and to Bid (IAEB) in Zamboanga Star.
- Only one prospective bidder, State Alliance Enterprises, Inc. (SAEI), applied and was recommended for negotiation despite not submitting a bid compliant with RA 9184 procedural requirements.
- SSC entered into a Contract of Agreement with SAEI for PHP 22,000,000.00 payable in installments from 2011 to 2014.
- COA found violations of RA 9184, including insufficient bidding process, non-compliance with publication requirements, contract exceeding approved budget, and lack of appropriation for capital outlay.
- Ombudsman filed administrative charges for Grave Misconduct against petitioners, except Pescadera who was dismissed due to retirement.
Legal Issues
- Whether the conduct of petitioners in the bidding and procurement process constituted Grave Misconduct or other administrative offenses under RA 9184, EO 292, PD 1445, and related laws.
- Whether Arasid’s signing of the contract exceeding the SSC-BOT approved amount constituted Gross Neglect of Duty.
- Proper penalties applicable to each petitioner based on their roles and violations.
Findings of the Office of the Ombudsman (OMB)
- Petitioners were found liable for Grave Misconduct due to: • Failure to prepare and submit required bidding documents as per RA 9184 standards. • Non-compliance with publication requirements; IAEB published in local newspaper instead of a paper of general nationwide circulation. • Lack of proof of compliance with pre-bid conference requirements. • Contract worth PHP 22,000,000 exceeded the approved budget of PHP 20,000,000. • Negotiation with SAEI despite procedural i