Title
Dimapilis-Baldoz vs. Commission on Audit
Case
G.R. No. 199114
Decision Date
Jul 16, 2013
Former POEA official Leonel Labrador dismissed in 1997 for bribery, convicted in 1999, and granted erroneous probation. COA disallowed salaries paid post-dismissal; SC affirmed disallowance but removed personal liability of POEA head, citing good faith.

Case Summary (G.R. No. 199114)

Relevant Facts and Background

Leonel Labrador was dismissed from his position on May 2, 1997, following a finding by then Labor Secretary Leonardo A. Quisumbing that he had engaged in bribery. This dismissal was later affirmed by the Civil Service Commission (CSC) and subsequently upheld by the Sandiganbayan. During a prolonged legal process, which included a conviction and sentencing for bribery, Labrador applied for probation, which was erroneously granted despite his disqualification from public office. Dimapilis-Baldoz, acting on the belief that Labrador was still employed, approved payments for his salaries and benefits from August 31, 1999, until March 15, 2004, the date of his formal separation from service.

Incident and COA Findings

On February 7, 2005, the COA issued an Audit Observation Memorandum noting that salaries and benefits paid to Labrador during the aforementioned period were unwarranted given his prior conviction and dismissal. Consequently, on January 18, 2006, the COA issued a Notice of Disallowance, finding Dimapilis-Baldoz personally liable for the total amount of P1,740,124.08, asserting that the payments made were illegal and therefore must be refunded. Dimapilis-Baldoz contested this, claiming she had acted in good faith and was unaware of the underlying administrative and criminal findings against Labrador.

Legal Basis for COA Authority

The authority of the COA to audit and disallow improper disbursements is grounded in the 1987 Philippine Constitution, Article IX-D, which provides for the examination and settlement of accounts related to government revenue and expenditures. The COA's rulings reflect its duty to ensure accountability for government funds and to uphold integrity in public service, emphasizing the importance of preventing resources from being misused.

Court’s Ruling on Disallowance

The Court partially granted the petition, correcting the COA's reckoning of the disallowance. While the COA argued that disallowance should begin from May 3, 2000, the ruling established that the proper date is May 2, 1997, the date of Labrador's initial dismissal. The Court held that since his removal was executed immediately, he should not have received any further remuneration.

Dimapilis-Baldoz's Personal Liability

A crucial aspect of the ruling involved assessing Dimapilis-Baldoz's personal liability for the disallowed amounts. The Court noted that public officials are presumed to act in good faith unless proven otherwise. Since the records indicated she was not notified of the judicial and administrative proceedings reg

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