G.R. No. 266713 (and G.R. No. 270183), July 30, 2024
GEORGE P. CABREROS AND BARMEL B. ZUMEL, PETITIONERS, VS. COMMISSION ON AUDIT, RESPONDENT.

JESSIE MARIO B. DOSADO, PETITIONER, VS. COMMISSION ON AUDIT, ET AL., RESPONDENTS.
(Concurring and Dissenting Opinion by Justice Singh)

FACTS

The Commission on Audit (COA) disallowed payments totaling PHP 5,103,000.00 for six purchase orders (POs) for Combat Clothing and Individual Equipment (CCIE) procured by the Philippine Army. COA found the procurement was done through “shopping” instead of the required public bidding, constituting illegal splitting of contracts, as the six POs were issued on the same date, by the same office, to the same supplier. The Philippine Army Bids, Negotiations and Acceptance Committee (BNAC) members, secretary, recommending and approving officers, and the payee were held liable.
Petitioners Lt. Col. George P. Cabreros and Lt. Col. Barmel B. Zumel were BNAC Members, and Lt. Col. Jessie Mario B. Dosado was the BNAC Secretary. Their appeal to the COA Proper was dismissed for being filed out of time. In related proceedings, the Sandiganbayan acquitted them of criminal charges under R.A. No. 3019 , finding no proof of “corrupt intent” or that they profited. Administratively, the Office of the Ombudsman found them guilty of Grave Misconduct. On appeal, the Court of Appeals (CA) dismissed the case against Dosado, downgraded Cabreros’s liability to Simple Misconduct finding no bad faith, while Zumel’s appeal remains pending.
The main Court Resolution agreed with COA’s disallowance but excused petitioners Cabreros and Zumel from solidary liability to return the disallowed amount, citing the Sandiganbayan’s finding of no corrupt intent and the CA’s finding of no bad faith for Cabreros.

ISSUE

Whether petitioners Lt. Col. George P. Cabreros and Lt. Col. Barmel B. Zumel, as BNAC Members, should be held solidarily liable to return the disallowed amount despite the findings in the criminal and administrative cases.

RULING

Justice Singh CONCURRED with the Resolution’s affirmation of COA’s disallowance due to splitting of contracts. However, she DISSENTED regarding the exemption of Cabreros and Zumel from liability.
1. The Sandiganbayan’s acquittal was based on insufficiency of evidence of profit, not a finding of good faith. The dismissal of criminal charges did not equate to an affirmative finding that the petitioners acted in good faith.
2. The CA did not categorically declare Lt. Col. Cabreros acted in good faith. The CA noted the BNAC committed an irregularity by proceeding with shopping despite circumstances that should have prompted public bidding.
3. As BNAC Members, Cabreros and Zumel had a duty to ensure compliance with R.A. No. 9184 (Government Procurement Reform Act). Their functions, equivalent to a Bids and Awards Committee (BAC), included recommending the proper mode of procurement. By recommending “shopping” for six contracts totaling PHP 5,103,000.00—which clearly exceeded the threshold for shopping and constituted splitting—they grossly disregarded the law’s express requirements.
4. This clear disregard of the law amounts to gross negligence, defined as the want of even slight care, acting or omitting willfully with conscious indifference to consequences. Gross negligence overturns the presumption of good faith and regularity in the performance of official functions.
5. Therefore, Cabreros and Zumel should be held solidarily liable to return the disallowed amount. Their liability as approving officers stems from their gross negligence in performing their duties. Following jurisprudence (Torreta v. COA), their liability may be reduced by the amounts excused from being returned by the payees under the principle of quantum meruit.
6. Justice Singh agreed that Lt. Col. Dosado, as BNAC Secretary performing ministerial functions, may be excused from solidary liability.
DISPOSITIVE:
Justice Singh voted to PARTLY GRANT the petitions. She would: (a) AFFIRM the COA disallowance; (b) EXEMPT petitioner Dosado from solidary liability; and (c) HOLD petitioners Cabreros and Zumel solidarily liable to return the disallowed amount, subject to possible reduction for amounts due to the payees.