Title
Supreme Court
Department of Foreign Affairs vs. Commission on Audit
Case
G.R. No. 194530
Decision Date
Jul 7, 2020
DFA challenged COA's filing fees on appeals from disallowances; SC upheld COA's authority, ruling fees constitutional and not violating due process or access to courts.

Case Summary (G.R. No. 194530)

Applicable Law

The actions in question pertain to the 1987 Philippine Constitution, specifically Article IX-A, Section 6, which grants Constitutional Commissions the authority to promulgate their rules concerning pleadings and practice, ensuring that such rules do not modify substantive rights.

Background and Facts

This matter arose from disallowances issued by the COA against the DFA regarding terminal leave benefits totaling approximately P33 million and allowances totaling about P7.2 million for employees of the Philippine Embassy in London. The COA claimed these payments violated regulations concerning leave credits and proper conversion rates for allowances into local currency. The DFA's subsequent appeals were returned unacted upon due to the failure to pay required filing fees, as mandated by COA Resolution No. 2008-005.

Initial COA Response

Upon appealing, the DFA motioned to suspend the implementation of the COA's Resolution, arguing its vagueness, potential for abuse, and violation of due process. The COA rejected the motion, ruling that the fees must be paid for any appeals to be considered, explaining that the Resolution complied with constitutional guidelines and did not infringe upon substantive rights or the due process of the petitioners.

Court's Ruling

The Court dismissed the petition filed by the DFA, elucidating that the imposition of filing fees is a valid exercise of COA’s rule-making authority under the Constitution. The COA was found to have properly acted en banc and that their decision regarding the imposition of these fees did not violate due process. The requirement for payment of filing fees is substantial and customary in legal procedures across jurisdictions and does not inherently restrict access to justice.

Due Process Considerations

The Court stressed that due process is not violated by the requirement to pay filing fees, pointing out that petitioners were already provided ample opportunity to present their side prior to the issuance of the disputed NDs. The process of auditing and issuing AOMs offered the petitioners a chance for justification before the COA’s final disallowance.

Clarification on Filing Fees

Concerns raised regarding the vagueness of the filing fee computations were found to lack merit, as the Resolution explicitly stipulates how fees are assessed based on the amounts involved. The Court reiterated that filing fees are designed to cover the administrative costs associated with processi

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