G.R. No. 257723 , April 01, 2024
AURORA O. ARAGON-MABANG, PETITIONER, VS. OFFICE OF THE OMBUDSMAN, RESPONDENT.

FACTS

The case involves the implementation of a livelihood project by the National Commission on Muslim Filipinos (NCMF) using funds sourced from the Priority Development Assistance Fund (PDAF) of Congressman Simeon A. Datumanong. The project was contracted out to the Maharlikang Lipi Foundation, Inc. (MLFI), a non-governmental organization (NGO). Petitioner Aurora O. Aragon-Mabang, as Acting Chief of the Management Audit Division under the Finance Management Services of the NCMF, was charged administratively. The central legal question pertained to the applicable rules governing the selection of the NGO and the release of funds.

ISSUE

The primary issue is whether Government Procurement Policy Board (GPPB) Resolution No. 12-2007 or Commission on Audit (COA) Circular No. 2007-001 governs the selection of an NGO for a government-funded project sourced from a lawmaker’s PDAF, and consequently, whether the petitioner incurred liability.

RULING

The concurring opinion agrees with the main decision (ponencia) that COA Circular No. 2007-001, not GPPB Resolution No. 12-2007, is the applicable rule. The opinion clarifies that GPPB Resolution No. 12-2007 applies only when an appropriation law or ordinance specifically earmarks an amount for projects to be contracted out to NGOs. In this case, the 2012 General Appropriations Act (GAA) did not contain such a specific appropriation for NGOs; the funds came from a congressman’s PDAF. Therefore, public bidding was not required under GPPB rules.
The selection of MLFI followed NCMF Resolution No. 29, s. 2012, which provided guidelines for accrediting NGOs for PDAF projects. The accreditation process complied with COA Circular No. 2007-001, as MLFI submitted legitimate documents proving its capability. Furthermore, the congressman’s selection of MLFI was consistent with the practice recognized prior to the prospective ruling in Belgica v. Ochoa, which declared certain PDAF-related practices unconstitutional. The petitioner had no hand in this selection.
However, the petitioner is liable for Simple Misconduct for signing Disbursement Vouchers that authorized the release of funds to MLFI before the execution of the required Memorandum of Agreement (MOA), which contravenes the explicit limitation in COA Circular No. 2007-001 that “no portion of the funds shall be released before the signing of the MOA.” The petitioner is not liable for Grave Misconduct or Conduct Prejudicial to the Best Interest of the Service, as there was no proof of corrupt intent or willful violation of law in the NGO selection process.