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National Artist for Sculpture Napoleon Abueva's sculpture is on permanent view at the Commission on Audit (COA) building in Quezon City. February 19, 2018. Jonathan Cellona, ABS-CBN News/File

Article (news)

Adrian Ayalin

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:950px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/172671848779720180219-napoleon-abueva-sculpture-17-JC.jpg" style="width:950px" class="fr-fic fr-dib" alt="National Artist for Sculpture Napoleon Abueva&#x27;s sculpture is on permanent view at the Commission on Audit (COA) building in Quezon City. February 19, 2018. Jonathan Cellona, ABS-CBN News/File "/><span class="fr-inner" style="text-align:left"><span id="isPasted" style="color:rgb(51, 51, 51);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:pre-wrap;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">National Artist for Sculpture Napoleon Abueva&#x27;s sculpture is on permanent view at the Commission on Audit (COA) building in Quezon City. February 19, 2018. <em>Jonathan Cellona, ABS-CBN News/File</em></span><em> </em></span></span></span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">MANILA – The Supreme Court has reminded the Commission on Audit that its audit powers do not include the imposition of administrative penalties. </span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">In a decision of the en banc promulgated on May 28, 2024, the court granted the petition of Philippine Health Insurance Corporation Region III officer Jess Christopher Biong against the COA. </span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">The court set aside the disallowance ruling of the commission against Biong. </span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">In 2011, the COA issued notices of disallowance to PhilHealth Region III officers including Biong, after discovering that payments made to Silicon Valley for printer inks and toners totaling P129,370 were irregular because of the delay in the delivery of supplies, lack of inspection reports, and falsified supplies withdrawal slips. </span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">While the commission affirmed that the payments were irregular, it also ruled that PhilHealth Region III had a valid obligation to pay Silicon Valley since it received the supplies. </span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">Biong was also found civilly liable for the disallowance for certifying that the items were delivered and for failing to discover falsified withdrawal slips. </span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">But the Supreme Court said PhilHealth-Central Luzon did not suffer any loss by paying Silicon Valley for the supplies it received and the imposition of civil liability against Biong was similar to a fine or penalty. </span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">Although there were irregularities, those happened after the transactions were completed. </span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">The court reminded the commission that the conduct of an audit is not an exercise of the government&#x27;s administrative supervision over public officers.</span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">“The liability of erring public officers in a disallowance case should partake of the nature of an obligation for restitution - not a fine or a penalty,” the court said in the decision penned by Associate Justice Henri Jean Paul Inting.</span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">The court said that without monetary loss, damage or injury to the government, the imposition of a fine or a penalty was outside the scope of COA’s audit powers. </span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">The court added that upon discovery of a violation of a law or regulation, the commission’s authority is limited to the initiation of the appropriate administrative, civil or criminal action.</span></div><div><br/></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap">“The COA cannot expand its audit powers so as to include the imposition of administrative penalties on erring public officers,” the court said.</span></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap"> </span></div><div dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap"><a href="https://news.abs-cbn.com/news/2024/8/13/did-gov-t-mishandle-funds-coa-will-report-if-true-says-angara-1700">Did gov’t mishandle funds? COA will report if true, says Angara</a></span><br/><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap"><a href="https://news.abs-cbn.com/news/2024/9/16/romualdez-slams-critics-who-want-accountability-but-ignore-own-funds-misuse-1444">Romualdez slams critics who want accountability but ‘ignore’ own funds ‘misuse’</a></span><br/><span style="color:#000000;background-color:transparent;text-decoration:none;vertical-align:baseline;white-space:pre-wrap"><a href="https://news.abs-cbn.com/news/2024/9/18/sara-duterte-exits-house-panel-probe-early-avoids-clash-with-lawmakers-1337">Sara Duterte exits House panel probe early, avoids clash with lawmakers</a></span></div><div><br/></div><div><br/></div><div><br/></div>

<p>The Supreme Court has reminded the Commission on Audit that its audit powers do not include the imposition of administrative penalties.</p>

The Supreme Court has reminded the Commission on Audit that its audit powers do not include the imposition of administrative penalties.

Supreme Court says COA has no power to impose administrative penalties

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Supreme Court says COA has no power to impose administrative penalties

Adrian Ayalin,

ABS-CBN News

Published Sep 19, 2024 12:10 PM PHT

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