Case Summary (G.R. No. 218870)
Factual Background and Notices of Disallowance
During his governorship, Villafuerte approved various contracts and payments, including:
• Architectural design services (₱1.74 M)
• Promotion of a sports event (₱11.52 M)
• Security services (₱6.31 M)
• Petty cash reimbursements (₱1.09 M)
• Mobilization fees for infrastructure projects (₱1.04 M total across several sites)
COA auditors found procurement and auditing irregularities under RA 9184 and COA Circular 2012-003 and issued ten NDs totaling approximately ₱23.41 M. Villafuerte did not appeal these NDs to the COA Commission Proper within six months, leading to NFDs.
Procedural History in the RTC
Villafuerte filed petitions for certiorari and prohibition with prayer for TRO and preliminary injunction. The RTC granted a TRO, later extended, and on November 7, 2014 issued a writ of preliminary injunction enjoining the COA from executing the NDs. The auditors moved to dismiss for lack of jurisdiction and non-exhaustion of administrative remedies, which the RTC denied on December 18, 2014. A motion for reconsideration was likewise denied on May 6, 2015.
Arguments of the Petitioners
- RTC lacked jurisdiction over COA disallowances.
- NDs became final and executory under PD 1445 and COA Rules.
- Villafuerte failed to exhaust administrative remedies before COA.
- Requisites for certiorari and prohibition were not met.
They cautioned that allowing trial-court intervention would undermine COA’s enforcement and clog court dockets.
Arguments of the Private Respondent
Villafuerte contended that he was challenging only the provincial auditors’ actions, not COA Commission Proper decisions, thus justifying recourse to the RTC. He claimed grave and irreparable injury should he be compelled to reimburse government funds and asserted that the mobilization fees were valid under the contracts. He also alleged bias and lack of bad faith in authorizing the expenditures.
Issues for Resolution
Whether the RTC committed grave abuse of discretion in entertaining Villafuerte’s petitions despite COA’s primary jurisdiction and the finality of the NDs.
Primary Jurisdiction of the Commission on Audit
Under Article IX, Secs. 1–2 of the 1987 Constitution and Section 26 of PD 1445, COA has exclusive power to audit and settle accounts of government funds. The doctrine of primary jurisdiction requires that questions involving specialized auditing expertise be first resolved administratively by COA.
Exclusive Judicial Review by the Supreme Court
Article IX, Sec. 7 of the 1987 Constitution limits judicial review of COA decisions to certiorari petitions filed with the Supreme Court within 30 days from receipt of the COA decision. Trial courts have no authority to issue writs of certiorari against COA disallowances.
Nonapplication of Exceptions to Primary Jurisdiction
Villafuerte did not demonstrate any recognized exception (e.g., patently illegal act, unreasonable delay, purely legal question) that would warrant bypassing
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Parties and Procedural Posture
- Petitioners: The Commission on Audit (COA), represented by provincial auditors Atty. Eleanor V. Echano (Audit Team Leader), Felizardo B. Toquero, Jr. (Sucessor ATL), Tita B. Embestro (Supervising Auditor), Susie S. Laureano (Successor SA), Johanson V. Disuanco, and Adela A. Tabuzo.
- Private Respondent: Luis Raymund F. Villafuerte, Jr., former Governor of Camarines Sur.
- Other Respondent: Hon. Erwin Virgilio R. Ferrer, Acting Presiding Judge, RTC Branch 33, Pili, Camarines Sur.
- Relief Sought: Petition for certiorari and prohibition challenging COA Notices of Disallowance (NDs) and NFDs, with prayers for TRO and/or preliminary injunction.
- RTC Disposition: Denial of petitioners’ motion to dismiss (18 December 2014) and denial of motion for reconsideration (06 May 2015).
Antecedent Facts
- Period Covered: Disbursements made by private respondent as Governor of Camarines Sur for 2006–2010.
- Audit Findings: COA identified non-compliance with RA 9184 (Government Procurement Act), unnecessary expenditures per COA Circular No. 2012-003, and other irregularities.
- Notices of Disallowance Issued (Nov–Dec 2012): Ten NDs covering payments totaling Php 23,408,059.37 for services and mobilization fees (architectural design, security services, event promotion, petty cash reimbursements, and infrastructure projects).
- Lack of Administrative Appeal: Private respondent did not contest the NDs before the COA Commission Proper within the six-month reglementary period; COA issued Notices of Finality of Decision (NFDs).
Audit Transactions and Amounts
- ND 2012-100-024: Php 1,743,000.00 for architectural and engineering services.
- ND 2012-100-025: Php 11,522,497.69 for promotion of the 2009 World Wakeboarding Championship.
- ND 2012-100-026: Php 6,312,354.78 for security services.
- ND 2012-100-037: Php 1,085,221.41 for petty cash reimbursements (water sports complex expenses).
- ND 2012-100-040 to ND 2012-100-044: Mobilization fees totaling Php 1,757,086.70 for various infrastructure projects (roads, school buildings, day-care center, solar dryer, street