G.R. No. 258510, May 28, 2024
Jess Christopher S. Biong, Petitioner, vs. Commission on Audit, et al., Respondents.

FACTS

The case involves the disallowance by the Commission on Audit (COA) of payments made by the Philippine Health Insurance Corporation (PhilHealth) Region III to Silicon Valley for office supplies (printer inks and toners) under several Purchase Orders (POs). The payments were withheld initially due to the absence of Inspection and Acceptance Reports (IARs). Upon consultation with a COA auditor, PhilHealth Region III, with petitioner Jess Christopher S. Biong as the Head of the General Services Unit (GSU), attached alternative documents to the disbursement vouchers: a Certification from the GSU (issued by Biong) confirming delivery, Supplies Withdrawal Slips (SWSs), and a Monthly Report of Supplies and Materials Inventory (MRSMI). Based on these, payments were released via checks in December 2010.
In January 2011, petitioner Biong discovered theft of office supplies and falsification of SWSs within the GSU. He filed an Incident Report and recommended an investigation. He also wrote to COA requesting relief from accountability for the lost supplies. Subsequently, COA issued Notices of Disallowance (NDs) for the payments, citing multiple grounds: lack of IARs; staggered deliveries contrary to PO terms; altered SWSs indicating padded issuances; SWSs without corresponding end-user copies; supplies issued to unknown recipients; and unaccounted deliveries. The NDs held various PhilHealth personnel civilly liable, including Biong, for certifying the deliveries. Biong appealed to the COA Proper, which approved the disallowances with modification. Biong then filed this Petition for Certiorari.

ISSUE

Whether the Commission on Audit committed grave abuse of discretion in affirming the disallowances and in holding petitioner Jess Christopher S. Biong civilly liable.

RULING

The Supreme Court DISMISSED the petition. The Court found no grave abuse of discretion on the part of the COA. The disallowance was proper due to violations of pertinent auditing and accounting rules, primarily the absence of the required Inspection and Acceptance Reports (IARs), which is a fatal defect. The alternative documents submitted (Certification, SWSs, MRSMI) did not cure this deficiency. The transactions were attended by irregularities such as altered SWSs, padded issuances, and deliveries to unknown end-users, indicating that the payments were illegal and irregular.
Regarding petitioner Biong’s liability, the Court ruled he is not liable for the entire disallowed amounts but is solidarily liable only for the portions corresponding to the losses or irregularities he was directly responsible for or that occurred under his watch. The Court applied the doctrine of “determination of individual liabilities” based on the nature of each official’s participation. Since Biong, as GSU Head, certified the deliveries despite the absence of IARs and the subsequent discovery of theft and falsification within his unit, he did not exercise the diligence required of a good father of a family. However, his liability is limited to the specific amounts attributable to the padded issuances, supplies with no end-user copies, supplies issued to unknown users, and unaccounted deliveries as detailed in the NDs. The case was remanded to the COA for the proper computation of the exact amounts for which Biong and other liable personnel are solidarily liable.