G.R. No. 240632 , August 22, 2023.
LIBRADO C. NAVARRO, PETITIONER, VS. COMMISSION ON AUDIT, DIRECTOR RONALD A. REY, REGIONAL DIRECTOR, COMMISSION ON AUDIT, REGIONAL OFFICE NO. XIII, CARAGA REGION, BUTUAN CITY, RESPONDENTS. [G.R. No. 240759] CHARLITO R. LEROG, APRODECIO A. ALBA, ROBERTO V. VIDUYA, DAISY A. RONQUILLO, LORNA S. SALGADO, AND BELMA K. LOMANTAS, PETITIONERS, VS. COMMISSION ON AUDIT, REPRESENTED BY CHAIRPERSON MICHAEL G. AGUINALDO, COMMISSIONER JOSE A. FABIA, AND COMMISSIONER ISABEL D. AGITO, RESPONDENTS. [G.R. No. 240803] RACQUEL L. BAUTISTA, ESTEFA R. MAATA, AND LAILA P. MANLUCOB, PETITIONERS, VS. COMMISSION ON AUDIT, REPRESENTED BY CHAIRPERSON MICHAEL G. AGUINALDO, COMMISSIONER JOSE A. FABIA, AND COMMISSIONER ISABEL D. AGITO, RESPONDENTS. [G.R. No. 241459] GILBERT P. ABUGAN, PETITIONER, VS. COMMISSION ON AUDIT [COA] AND REGIONAL DIRECTOR, COA REGIONAL OFFICE NO. XIII, RESPONDENTS.

FACTS

The Commission on Audit (COA) disallowed the Bislig City Government’s procurement of a Komatsu Hydraulic Excavator from RDAK Transport Equipment, Inc., finding the transaction illegal and irregular. COA alleged that the awarded unit had a bucket capacity of only 0.80 cubic meters, which failed to meet the technical specification in the Invitation to Bid requiring a capacity of 1 to 1.5 cubic meters. The petitioners, various city officials involved in the procurement, challenged the disallowance. The Technical Working Group’s post-qualification evaluation found RDAK’s bid responsive. A State Auditor’s inspection report confirmed the delivered unit conformed to the Purchase Order specifications. A subsequent COA Regional Technical Audit Team report stated the bucket capacity was 0.80 cubic meters but noted an additional 30% capacity during actual excavation. The Sandiganbayan, in a related criminal case, acquitted some of the petitioners, finding based on evidence that the unit’s bucket capacity, including its heaped capacity, complied with the required specifications.

ISSUE

Whether the Commission on Audit committed grave abuse of discretion in disallowing the procurement as illegal and irregular based on the alleged non-compliance of the excavator’s bucket capacity with the bid specifications.

RULING

Yes, the Commission on Audit committed grave abuse of discretion. The concurring opinion emphasizes that COA’s findings were not based on law and evidence but on a capricious disregard of consistent factual findings. The Technical Working Group’s post-qualification evaluation, the State Auditor’s inspection report, and the Sandiganbayan’s factual findings from a related criminal trial all established that the Komatsu Hydraulic Excavator’s bucket capacity complied with the technical specifications. The Sandiganbayan specifically found that the bucket’s actual excavation capacity was 1.04 cubic meters, within the required range. COA’s reliance solely on a portion of a manual indicating a 0.80 cubic meter capacity, while ignoring other manual pages and the actual performance evidence, constituted an evasion of its duty to properly evaluate the evidence. Therefore, the disallowance was issued with grave abuse of discretion.