G.R. No. 257871 , April 15, 2024
HJA FERWINA JIKIRI AMILHAMJA, ANANG AGANG HAWANG, NENITA PINO AGUIL, AUDIE SINCO JANEA, AND ABDURASA SARIOL ARASID, PETITIONERS, VS. OMBUDSMAN-MINDANAO, FIELD INVESTIGATION UNIT, REPRESENTED BY: LIWAYWAY SUMAGAYSAY-RONDINA, RESPONDENT.

FACTS

Petitioners were officials of Sulu State College (SSC). Abdurasa Sariol Arasid, as SSC President, requested the SSC Board of Trustees (BOT) to purchase equipment. The SSC-BOT issued Resolution No. 19, setting aside PHP 20,000,000.00 for the purchase. The SSC Bids and Awards Committee (BAC), composed of petitioners Amilhamja (Chairperson), Hawang, Aguil, Janea, and Joseph Pescadera, approved the publication of an Invitation to Bid. The BAC published the Invitation to Apply for Eligibility and to Bid (IAEB) in the Zamboanga Star. Only one bidder, State Alliance Enterprises, Inc. (SAEI), applied. The BAC recommended negotiation with SAEI as the lone bidder. On May 30, 2011, SSC and SAEI entered into a contract for the purchase of equipment for PHP 22,000,000.00, payable in installments from 2011 to 2014. The Commission on Audit (COA) investigated and found violations, including insufficient public bidding, use of a non-national publication, and failure to declare a failed bidding. COA issued a Notice of Disallowance, citing violations such as lack of proper appropriation and certification of funds, and an increase in the contract amount and installment term without BOT approval. The Ombudsman filed administrative charges for Grave Misconduct. The OMB found petitioners liable for Grave Misconduct and imposed the penalty of dismissal. The Court of Appeals affirmed the OMB’s decision but modified the finding against Arasid to Gross Neglect of Duty.

ISSUE

Whether the petitioners are administratively liable for their actions in the procurement process.

RULING

Yes, the petitioners are administratively liable. The Supreme Court affirmed the findings of the Court of Appeals with modification. The Court found that the petitioners failed to comply with the Government Procurement Reform Act (RA 9184) and its rules. Specifically, the publication of the IAEB in the Zamboanga Star, a local newspaper, did not satisfy the requirement for a newspaper of general circulation. The procurement as a negotiated contract with a lone bidder was improper as the mandatory conditions for alternative methods of procurement were not met. The contract amount of PHP 22,000,000.00 exceeded the BOT-approved budget of PHP 20,000,000.00, and the installment period was extended without BOT approval. The absence of key bidding documents further indicated a flawed process. Petitioner Arasid, as head of the procuring entity, was liable for Gross Neglect of Duty for approving the contract despite these irregularities. The other BAC members (Amilhamja, Hawang, Aguil, and Janea) were liable for Simple Neglect of Duty. The penalty of dismissal was imposed on Arasid. For the other petitioners, considering their length of service and the absence of prior offenses, the penalty was modified to a six-month suspension without pay.