G.R. No. 110798 July 20, 1999
ODELON T. BUSCAINO, petitioner, vs. COMMISSION ON AUDIT, respondent.

FACTS

Petitioner Odelon T. Buscaino was the Director of Fiscal Management Services (Chief Financial Management Officer II) of the Polytechnic University of the Philippines (PUP). His functions included signing disbursement vouchers, certifying the availability of funds and the legality and propriety of supporting documents. He was also a member of the PUP Canvass and Award Committee, which recommended awards to suppliers. The resident COA Auditor of PUP issued several Certificates of Settlement and Balances (CSBs) disallowing in audit an aggregate amount, initially P993,933.32, for overpriced purchases of office and school supplies made without public bidding or canvass, and for other irregular transactions. A motion for reconsideration by PUP officials was denied by the COA in Decision No. 826, which held petitioner jointly and severally liable with other PUP officials. Petitioner sought reconsideration. Subsequently, COA Decision No. 1509 increased the disallowances to P2,379,304.98 and held petitioner jointly and solidarily liable for numerous transactions listed in 16 CSBs. The reasons for his liability included being a signatory to the disbursement vouchers (certifying documents as legal and proper) and, for many purchases, being a signatory to the Abstract of Bids as a committee member certifying prices as fair and lowest. Specific disallowances cited purchases without canvass, short delivery of typewriters, unauthorized housing and gasoline allowances, and an improper payment for a telephone system. Petitioner filed another motion for reconsideration, arguing his role as Chief Accounting Officer was merely to check for completeness of documents and that he acted in good faith. His request for supporting documents from the auditor for his defense was denied. The COA, in Decision No. 2826, denied his motion. Petitioner then filed this petition for certiorari.

ISSUE

Whether the Commission on Audit committed grave abuse of discretion in holding petitioner Odelon T. Buscaino jointly and solidarily liable for the audit disallowances.

RULING

Yes, the Supreme Court granted the petition and reversed and set aside COA Decision No. 2826. The Court found that the COA’s disallowance was tainted with grave abuse of discretion. The Court ruled that petitioner, in signing Box No. 4 of the disbursement vouchers, acted within the scope of his duties as Chief Accounting Officer, which was to certify that supporting documents were complete and proper. His certification did not extend to determining the fairness of prices, which was the responsibility of the Canvass and Award Committee. For transactions where he was a committee member, the Court found that the committee’s recommendation was based on canvasses from at least three suppliers, and there was no evidence petitioner acted with malice or bad faith. Regarding the telephone system payment, the Court found petitioner correctly certified the availability of funds. For the disallowed gasoline payments, supporting receipts and tickets were attached. The Court concluded petitioner regularly discharged his duties in good faith and the COA’s decision holding him liable was issued with grave abuse of discretion.