GR 46028; (August, 1938) (Digest)
G.R. No. 46028 ; August 8, 1938
AMADEO MATUTE, petitioner, vs. JAIME HERNANDEZ, Auditor-General of the Commonwealth of the Philippines, respondent.
FACTS
Petitioner Amadeo Matute entered into a contract with the government, through the Purchasing Agent, to supply fresh meat at specified prices. During the contract period, the City of Manila increased slaughterhouse fees. Petitioner requested a corresponding price increase, which was granted by the Acting Purchasing Agent with the approval of the Undersecretary of Finance. The Director of Prisons subsequently issued a treasury warrant for payment. Respondent Auditor-General refused to countersign the warrant, deeming the price increase illegal.
ISSUE
Whether the Auditor-General has the power to refuse to countersign a treasury warrant based on his determination that the underlying contract amendment is illegal for non-compliance with required procedures.
RULING
Yes. The petition for mandamus is denied. The Auditor-General’s duty to examine and settle accounts includes the discretional power to determine if expenditures are irregular. The price increase constituted a novation of the principal conditions of the original contract. Executive Order No. 16 (as clarified by Executive Order No. 98) required public bidding, consultation with specified officials (the Auditor-General, Secretary of Justice, and department head), and presidential approval for the renewal or amendment of such supply contracts. These requirements were not met. The executive orders are valid exercises of the President’s constitutional power of control over the executive department and duty to ensure faithful execution of the laws.
AI Generated by Armztrong.