GR 272898; (October, 2024) (Digest)
G.R. No. 272898, October 08, 2024
BERNADETTE LOURDES B. ABEJO, FORMER EXECUTIVE DIRECTOR OF THE INTER-COUNTRY ADOPTION BOARD [ICAB] [NOW NATIONAL AUTHORITY FOR CHILD CARE OR NACC], PETITIONER, VS. COMMISSION ON AUDIT, REPRESENTED BY CHAIRPERSON MICHAEL G. AGUINALDO, RESPONDENT.
FACTS
Petitioner Bernadette Lourdes B. Abejo, former Executive Director of the Inter-Country Adoption Board (ICAB), approved the payment of Collective Negotiation Agreement incentives and Christmas tokens to members of the ICAB and Inter-Country Placement Committee from January 2008 to December 2010, totaling PHP 355,000.00. The Commission on Audit (COA) issued a Notice of Disallowance against this amount, finding the payment had no legal basis as: (a) tokens or benefits to board and committee members lacked legal basis; (b) Collective Negotiation Agreement incentives under Administrative Order No. 135 are limited to rank-and-file employees; and (c) allowances, honoraria, and fringe benefits under Presidential Decree No. 1597 require the President’s approval. Abejo was held solely liable as the approving officer. Abejo appealed, arguing the gifts were for services rendered, consistent with Department of Budget and Management (DBM) Circular No. 2011-5, and that she acted in good faith. COA denied her appeals, affirming the disallowance, ruling the Christmas tokens were without legal basis as they were not authorized benefits under the General Provisions of Republic Act No. 9970 and were prohibited year-end benefits under DBM Budget Circular No. 2005-6 unless approved by the President. Abejo filed a Petition for Certiorari before the Supreme Court.
ISSUE
Whether the Commission on Audit acted with grave abuse of discretion amounting to lack or excess of jurisdiction in issuing the assailed Decisions, specifically in holding that the grant of Christmas tokens was without legal basis and in holding petitioner Abejo liable for the refund of the disallowed amount.
RULING
The Petition is partly granted. The Supreme Court upheld the COA’s finding that the expenditure was illegal for lack of legal basis. However, it modified the liability of petitioner Abejo. Citing Juan v. Commission on Audit, the Court ruled that the solidary liability of an officer who approved and certified an illegal expenditure is limited only to the “net disallowed amount.” In this case, the Notice of Disallowance held only Abejo liable, and the payees (the board and committee members) were not made parties to the case. Consequently, none of the amounts they received may be ordered returned. Therefore, the net disallowed amount is zero, as the entire disallowed amount remains effectively excused or allowed to be retained by the concerned payees. Abejo is thus obliged to return only the net disallowed amount, which is zero.