G.R. No. 96422 February 28, 1994
FRANCISCO S. TANTUICO, JR., petitioner, vs. HON. EUFEMIO DOMINGO, in his capacity as Chairman of the Commission on Audit, ESTELITO SALVADOR, MARGARITO SILOT, VALENTINA EUSTAQUIO, ANICIA CHICO and GERMINIA PASCO, respondents.

FACTS

Petitioner Francisco S. Tantuico, Jr. was appointed Chairman of the Commission on Audit (COA) on January 26, 1980, with a term expiring on January 26, 1987. He had previously served as Acting Chairman since 1975. On December 31, 1985, he obtained a clearance from all money, property, and other accountabilities covering 1976 to December 31, 1985. After the EDSA Revolution, he submitted a courtesy resignation to President Corazon C. Aquino and relinquished his office on March 10, 1986, applying for retirement effective immediately. He sought a second clearance for the period January 1 to March 9, 1986, which was signed by all required officials except the new Chairman, Teofisto Guingona, Jr. Respondent Chairman Eufemio Domingo later issued COA Office Order No. 87-10182, creating a committee to inventory equipment acquired during his predecessors’ tenures. On May 7, 1987, respondent Chairman indorsed petitioner’s retirement application to the GSIS, certifying he was cleared of money and property accountability. An inventory committee report dated September 25, 1987, recommended petitioner’s clearance. Respondent Chairman, dissatisfied, administratively charged the committee members. On January 2, 1988, he created a special audit team to conduct a financial and compliance audit of COA transactions during petitioner’s tenure from 1976 to 1984. The team’s report dated February 28, 1989, noted deficiencies and mentioned officials, including petitioner, who may be accountable. In a letter dated December 21, 1989, respondent Chairman approved petitioner’s retirement but ordered payment of only one-half of the benefits, withholding the balance pending final audit results. Petitioner requested full payment and was furnished a copy of the audit report on January 29, 1990, with a request for his comment. Petitioner sought access to working papers, which was denied. He then filed this petition for certiorari, prohibition, and mandamus.

ISSUE

The main issue is whether respondent Chairman of the COA can lawfully withhold one-half of petitioner’s retirement benefits based on pending audit findings concerning his fiscal responsibility as former COA Chairman.

RULING

The petition is GRANTED insofar as it seeks to compel respondent Chairman to pay petitioner’s retirement benefits in full and his monthly pensions beginning March 1991. The petition is DENIED insofar as it seeks to nullify COA Office Order No. 88-10677 and the audit report dated February 28, 1989, but petitioner should be given full access to the working papers to prepare his comment. The Court held that regardless of any monetary liability to the government that may be discovered from the audit, respondent Chairman cannot withhold the benefits due under retirement laws. Citing Romana Cruz v. Hon. Francisco Tantuico, 166 SCRA 670 (1988), the Court ruled that retirement pay accruing to a public officer may not be withheld and applied to his indebtedness to the government. The Court noted petitioner had been issued clearances and a certification of clearance by respondent Chairman himself, and no criminal or administrative charges had been filed against him in connection with his position as of the filing of the petition. The temporary restraining order is LIFTED.