G.R. No. 218544, June 02, 2020
Atty. Camilo L. Montenegro, Petitioner, vs. Commission on Audit, Hon. Khem N. Inok, Director IV, Legal and Adjudication Office-National, and Hon. Leonor D. Boado, Director IV, LSS Ad Hoc Committee, Respondents. Central Board of Assessment Appeals (CBAA), Intervenor.

FACTS

Atty. Camilo L. Montenegro was appointed as hearing officer of the Central Board of Assessment Appeals (CBAA), Visayas Field Office, for a term of six years from February 26, 1993, to February 25, 1999. Prior to the expiration of his term, the CBAA issued a Resolution dated February 15, 1999, authorizing him to continue service in a holdover capacity indefinitely until his successor is chosen, citing Section 230 of the Local Government Code. On June 20, 2003, the CBAA issued another Resolution authorizing him to continue service indefinitely despite his compulsory retirement on that date. The Commission on Audit (COA) issued Notice of Disallowance (ND) No. 2005-025 for P132,844.50, covering salaries and emoluments paid to Atty. Montenegro for the period from July 1 to November 30, 2003, after his compulsory retirement, on the basis that the extension of his services was illegal without Civil Service Commission (CSC) approval. Another ND, No. 2010-09-095, was issued for P1,432,339.93 due to the expiration of his six-year term and continuation in office without CSC approval. Atty. Montenegro was held liable under ND No. 2005-025. The COA Commission Proper denied the petition for review. Atty. Montenegro filed a Petition for Certiorari before the Supreme Court. The CBAA filed a Petition-in-Intervention.

ISSUE

Whether Atty. Montenegro is entitled to the salary, emoluments, and benefits as a hearing officer of the CBAA by reason of the extension of his appointment in a holdover capacity even beyond his compulsory retirement.

RULING

The Supreme Court PARTIALLY GRANTED the Petition for Certiorari. It AFFIRMED with MODIFICATION the COA Decision No. 2013-213 dated December 3, 2013. The Court disallowed the Petition-in-Intervention filed by the CBAA, as it was an attempt to circumvent procedural technicalities after its failure to timely file a motion for reconsideration. On the merits, the Court held that a hearing officer of the CBAA in a holdover capacity beyond compulsory retirement age is not exempt from civil service laws, rules, and regulations. The extension of Atty. Montenegro’s service without the requisite approval from the CSC constituted an irregular expenditure. However, the Court absolved Atty. Montenegro from liability under ND No. 2005-025, as he rendered actual services and there was no finding of bad faith on his part. The appointing authority and other officials who authorized the disbursement were held accountable for the disallowed amount. The pronouncement was without prejudice to any other administrative or criminal liabilities of the responsible officials.