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2017 (GR No 213581, BSP V COA) PDF
2017 (GR No 213581, BSP V COA) PDF
DECISION
LEONEN , J : p
II
Even if this Court agrees with respondent that its 2009 Rules apply in the case at
bar and not its 1997 Rules, its arguments still fail to convince.
The 2009 Rules have expanded the Commission Proper's original jurisdiction
provided for under the 1997 Rules by authorizing it to act not only on money claims but
also on several kinds of request. These requests are (a) for hiring of legal retainers, (b)
for write-offs of unliquidated cash advances and dormant amounts, and (c) for relief
from accountability for losses due to acts of man. 7 8 Nonetheless, despite the
Commission Proper's expanded jurisdiction, the Commission on Audit's 2009 Rules still
prescribe the proper procedure to be followed for the resolution of the original case.
Money claims against the government continue to require the submission of a
petition and an answer, with the petitioner having the option to le a reply at his or her
discretion. 7 9 On the other hand, a request of a government agency to hire a legal
retainer is to be led with the Commission on Audit O ce of the General Counsel, who
shall then act on the request in respondent's behalf. 8 0
The procedure for requests for write-offs of unliquidated cash advances and
dormant accounts and for relief from accountability for losses due to acts of man can
be found in Rule VIII, Section 4, which states:
Section 4. Other Cases . — Requests for write off of accounts receivable or
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unliquidated cash advances exceeding P1 million; or relief from accountability
for acts of man such as robbery, theft, arson in excess of P5 million; or approval
of private sale of government property; or other matters within the original
jurisdiction of the [Commission Proper], shall be led with the Commission
Secretary . The Commission Secretary shall refer the case to the
Central/Regional O ce concerned for comment and recommendation and
thereafter to the Legal Services Sector, for preparation of the draft decision for
consideration of the Commission Proper. (Emphasis supplied)
Respondent claims that there is nothing in Rule VIII, Section 4 of the 2009 Rules
that directs it to conduct adversarial proceedings with the submission of a request for
relief from accountability. 8 1 It further claims that its assailed Decision was arrived at
after a careful evaluation of the evidence submitted by the parties in the audit
proceedings and the proceedings before the Office of the Ombudsman. 8 2
Nonetheless, this still does not cure the glaring defect that Yap and Dequita were
not parties to the request for opinion or request for relief from accountability, yet
respondent found them liable for the cash shortage. Much worse, respondent also tried
to pin liability on other bank o cers who were never part of the request for opinion or
of any of the proceedings before the Office off the Ombudsman.
Respondent insists that Yap and Dequita were not deprived of their right to due
process since they led their counter-a davits in the administrative proceedings
before the O ce of the Ombudsman, while Yap even led a reply to respondent's
demand letter after the audit was conducted. 8 3 Respondent also highlights that
petitioner led a "comprehensive Motion for Reconsideration" 8 4 on the assailed
Decision. But as respondent itself pointed out, administrative and criminal proceedings
before the Office of the Ombudsman are different from the audit proceedings before it:
16. There is another reason why the dismissal of administrative and
criminal charges against Yap and Dequita by the O ce of the Ombudsman
does not necessarily foreclose the possibility of them being held accountable by
the [Commission on Audit]. The administrative and criminal charges before the
O ce of the Ombudsman and the [Commission on Audit] audit are distinct
proceedings. The rst involves the determination of (1) administrative liability
of public o cers and (2) the fact of the commission of a crime. On the other
hand, the second relates to the administrative aspect of the expenditure or use
of public funds. As distinct proceedings, they can proceed independently of
each other. 8 5
Yet despite admitting the independent nature of the proceedings before the
O ce of the Ombudsman from its own audit proceedings, respondent still contends
that its review and evaluation of the counter-a davits led by Yap and Dequita before
the Office of the Ombudsman already satisfied the requirements of due process.
This Court is not convinced.
Due process in administrative proceedings does not require the submission of
pleadings or a trial-type of hearing. Due process is satis ed if the party is duly noti ed
of the allegations against him or her and is given a chance to present his or her defense.
Furthermore, due process requires that the proffered defense should have been
considered by the tribunal in arriving at its decision. 8 6
This nds basis in Ang Tibay v. Court of Industrial Relations , 8 7 which ruled that
administrative due process only requires the following:
(a) The party should be allowed to present his or her own case and submit
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supporting evidence;
(b) The deciding tribunal must consider the party's evidence;
(c) There is evidence to support the tribunal's decision;
(d) The evidence supporting the tribunal's decision must be substantial or
such "relevant evidence as a reasonable mind might accept as adequate to
support a conclusion";
(e) The tribunal's decision was based on the evidence presented or the
records of the case disclosed to the parties;
(f) The tribunal's decision must be based on the judges' independent
consideration of the facts and law governing the case; and
(g) The tribunal's decision must be rendered such that the issues of the case
and the reasons for the decisions are known to the parties. 8 8
It is beyond dispute that Yap, Dequita, and the other bank o cials of the Bangko
Sentral ng Pilipinas, Cotabato Branch were denied due process with the issuance of the
assailed Commission on Audit Decision.
Respondent rendered its assailed Decision in blatant disregard to its own rules,
treating the request for opinion as a request for relief from accountability even if the
former did not include the required documents and comments or recommendations
needed under either the 1997 Rules or 2009 Rules. Furthermore, the request for opinion
was led by petitioner alone, yet the assailed Decision found Yap, Dequita, and other
bank o cers of the Cotabato Branch jointly and solidarily liable, even if they were never
parties to the request for opinion or request for relief from accountability.
It was an error amounting to grave abuse of discretion to hold Yap liable, and
Dequita and the other bank o cers of the Cotabato Branch jointly and solidarily liable
with Yap for the cash shortage without an actual complaint being led and without
giving them the chance to defend themselves. Thus, the assailed Decision violated the
basic tenets of due process and must be annulled and set aside. However, in the
absence of a complaint, this Court cannot grant petitioner's prayer for this Court to
render judgment relieving Yap, Dequita, and the other bank o cers from accountability
over the cash shortage. Nonetheless, the O ce of the Ombudsman has already
rendered judgment on Yap and Dequita's liability by dismissing the administrative and
criminal charges against them.
WHEREFORE , the Petition is GRANTED . The Commission on Audit Decision No.
2013-064 dated April 12, 2013 and its En Banc Resolution dated May 6, 2014, holding
Evelyn T. Yap, Perry B. Dequita, and the other bank o cers of Bangko Sentral ng
Pilipinas, Cotabato Branch jointly and solidarily liable for the cash shortage, are
REVERSED and SET ASIDE .
SO ORDERED.
Carpio, Velasco, Jr., Leonardo-de Castro, Peralta, Bersamin, Del Castillo,
Jardeleza, Caguioa, Martires and Reyes, Jr., JJ., concur.
Sereno, * C.J., is on official leave.
Perlas-Bernabe, ** Tijam *** and Gesmundo, **** JJ., are on official business.
Footnotes
* On official leave.
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** On official business.
*** On official business.
2. Id. at 31.
3. Id. at 34.
4. Id. at 34-35.
5. Id. at 6.
6. Id. at 34-35, Ombudsman Decision.
7. Id.
8. Id.
9. Id. at 35.
71. 1997 REVISED RULES OF PROCEDURE OF THE COMMISSION ON AUDIT, Rule VIII, sec. 2, 3
and 4 provide:
Section 2. Petition. — A claimant for money against the Government, whose claim is
cognizable by the Commission Proper, may le a petition. The party seeking relief shall
be referred to as "Petitioner" and the government agency or instrumentality against
whom a claim is directed shall be referred to as "Respondent."
Section 3. Contents of Petition. — The petition shall contain the personal circumstances
or juridical personality of the petitioner, a concise statement of the ultimate facts
constituting his cause of action, a citation of the law and jurisprudence upon which the
petition is based and the relief sought. The petition shall be accompanied by certi ed
true copies of documents as are referred to therein and other supporting papers.
Section 4. Filing of Petition. — The petition shall be led with the Commission Secretary,
a copy of which shall be served on the respondent. Proof of service of the petition on the
respondent shall be attached to the petition.
72. 1997 REVISED RULES OF PROCEDURE OF THE COMMISSION ON AUDIT n , Rule VIII, sec. 6
provides:
Section 6. Answer. — Within the said fteen (15) days from receipt of the Order, the
respondent shall le with the Commission Secretary an answer to the petition. The
answer shall be accompanied by certi ed true copies of documents referred to therein
together with other supporting papers. The answer shall (a) point out insu ciencies or
inaccuracies in the petitioner's statement of facts and issues and (b) state the reasons
why the petition should be denied or dismissed. Copy of the answer shall be served on
the petitioner and the proof of service thereof shall be attached to the answer.
73. 1997 REVISED RULES OF PROCEDURE OF THE COMMISSION ON AUDIT n , Rule VIII, sec. 7
provides:
Section 7. Reply. — Petitioner may le a reply within ten (10) days from receipt of the
answer.
79. 2009 REVISED RULES OF PROCEDURE OF THE COMMISSION ON AUDIT, Rule VIII, sec. 2.
80. 2009 REVISED RULES OF PROCEDURE OF THE COMMISSION ON AUDIT, Rule VIII, sec. 3.
86. Gutierrez v. Commission on Audit, 750 Phil. 413, 430 (2015) [Per J. Leonen, En Banc].
n Note from the Publisher: Written as "1997 REVISED RULES OF PROCEDURE FOR THE
COMMISSION ON AUDIT" in the original document.
n Note from the Publisher: Written as "1997 REVISED RULES OF PROCEDURE FOR THE
COMMISSION ON AUDIT" in the original document.