Case Summary (G.R. No. 151987)
Background of the Case
The case arises from a 2000 COA decision which maintained that the petitioners were liable for purchasing polyethylene plastic bags at inflated prices, without a proper bidding process. The total alleged overprice amounted to PHP 316,138.50. The procurement was part of a project under Executive Order No. 100 aimed at urban greening, wherein the DENR-CAR acted as an implementing body. The crucial events involved the procurement process conducted by the petitioners in 1994, where they were assisted by resident auditor Estrellita B. Belandres.
Audit Findings and COA Decisions
In 1995, following a special audit conducted by COA’s Special Audit Office, findings indicated that the purchases had been made without the necessary public bidding procedures and involved significant overpricing. The subsequent COA decisions, affirming the Special Audit Office's findings, led to the filing of criminal charges against the petitioners under the Anti-Graft and Corrupt Practices Act for causing undue injury to the government.
Legal Arguments Presented by Petitioners
The petitioners contested the findings, arguing that they should not be held liable for any wrongdoing. They stressed their reliance on the judgement of the COA auditor, who was present at the bidding and failed to halt the proceedings despite noticing potential discrepancies. This reliance, combined with their claims of good faith, was central to their defense. They contended that the COA's representative at the bidding merely acted as an observer, thus undermining any assertion that they had acted improperly.
COA’s Response and Legal Justifications
The COA defended its position by asserting that the ultimate responsibility for the procurement rested with the members of the Bids and Awards Committee, not with the auditor who was present. The COA referenced specific provisions from COA Circular No. 78-87 which delineated the role of auditors during bidding as observers tasked with maintaining the integrity of documents rather than evaluating bids.
Constitutional and Legislative Framework
The provisions governing the actions of the Commission on Audit are enshrined in the 1987 Philippine Constitution, which grants the COA the authority to audit and examine the financial transactions of government agencies. COA Circular No. 78-87 further outlines the limited role of COA representatives during bidding processes, reaffirming that the significant elements of procurement responsibility lie with the governing body conducting the bids.
Judicial Findings and Final Ruling
The Court ultimately upheld the COA’s decisions, concluding that the petitioners bore the duty of ensuring that the pr
...continue readingCase Syllabus (G.R. No. 151987)
Introduction
- The case is an original action for certiorari with a prayer for a temporary restraining order and preliminary injunction.
- Petitioners seek to reverse the Commission on Audit (COA) Decision dated September 12, 2000, and a Resolution dated December 6, 2001, which denied their motion for reconsideration.
- The COA's decision affirmed the findings of Special Audit Office (SAO) Report No. 95-31, recommending criminal charges against the petitioners for violations of Republic Act No. 3019 and ordering the refund of P316,138.50 for alleged overpricing in the purchase of polyethylene plastic bags.
Background of the Case
- On August 6, 1993, a Special Order from the Department of Environment and Natural Resources (DENR) designated petitioners as members of the Bids and Awards Committee (BAC) for DENR-Cordillera Administrative Region (DENR-CAR).
- Petitioners operated in a hold-over capacity in 1994 due to the absence of new appointees.
- The DENR-CAR was tasked with implementing the national Adopt-A-Street/Park Program under Executive Order No. 100 (1993) to promote urban greening.
Procurement Process
- The procurement of polyethylene plastic bags was initiated due to the urgent need for these items for seedling production ahead of the rainy season.
- A bidding process was organized on July 12, 1994, with steps including:
- Preparation and posting of an Invitation to Bid.
- Distribution of canvass papers to known suppliers.
- Collection of sealed bids from suppliers including Fluid Air Technologies, Kinship Industrial Sales and Services, and others.
Bidding and Findings
- The Bids and Awards Committee (PBAC)