G.R. No. 237987 - DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS, REGION IV-A AND GENEVIEVE E. CUARESMA, AS ONE OF THE CERTIFYING OFFICERS AT THE TIME OF THE GRANT OF THE ASSAILED CNA INCENTIVE,*, VS. COMMISSION ON AUDIT.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE , premises considered, the Petition for Review of Engr. Diosdado J. Villanueva, President, Department of Public Works and Highways (DPWH) Region IV-A Employees Association, of Commission on Audit Regional Office (RO) No. IV-A Decision No. 2013-29 dated October 21, 2013 is hereby DENIED . Accordingly, Notice of Disallowance No. 2009-01-101-(09) dated December 14, 2009 on the payment of 2008 Collective Negotiation Agreement incentive to officials and employees of DPWH RO No. IV-A in the total amount of P3,915,000.00 is AFFIRMED . [10] DPWH IV-A Employees Association, through Engr. Villanueva, moved for reconsideration, but the same was denied by the COA in its Resolution [11] No. 2017-458 dated December 27, 2017. In denying the motion for reconsideration, the COA maintained that the CNA Incentive could not be validly sourced from the EAO. It stressed that DBM Budget Circular No. 2006-1 is clear on this point. Further, it reiterated the liability of the officers who approved the invalid release of the CNA Incentive as well as the officers who certified the availability of funds and sufficiency of documents necessary for such release. It, however, clarified that the officers and employees who were mere passive recipients of the said benefit need not refund the amounts they received in good faith. The dispositive portion of the resolution states: WHEREFORE , premises considered, the Motion for Reconsideration of Engr. Diosdado J. Villanueva, President, Department of Public Works and Highways (DPWH) Regional Office (RO) No. IV-A Employees Association, is hereby DENIED with FINALITY . Accordingly, Commission on Audit (COA) Decision No. 2016-377 dated November 10, 2016, denying the Petition for Review of COA RO No. IV-A Decision No. 2013-29 dated October 21, 2013 and affirming Notice of Disallowance No. 09-01-101-(09) dated December 14, 2009, on the payment of Collective Negotiation Agreement Incentive for calendar year 2008 to officials and employees of DPWH RO No. IV-A in the total amount of P3,915,000.00, is AFFIRMED . However, passive recipients need not refund the benefits they received in good faith, while the approving/certifying officers remain solidarity liable for the entire amount of disallowance based on the Silang case. [12] On February 28, 2018, Cuaresma received a copy of the COA Resolution No. 2017-458. Considering that she was among those found to be liable for the disallowed incentive, Cuaresma was prompted to file this petition. The Issues I. WHETHER OR NOT THE GRANT OF THE CNA INCENTIVE IS VALID AND SUPPORTED BY LAW AND OTHER PERTINENT RULES AND REGULATIONS. II. WHETHER OR NOT RESPONDENT COA ACTED WITH GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION IN DENYING WITH FINALITY THE MOTION FOR RECONSIDERATION OF ENGR. DIOSDADO J. VILLANUEVA AND FURTHER AFFIRMED THE DECISION NO. 2016-377 DATED NOVEMBER 10, 2016, DENYING THE PETITION FOR REVIEW OF COA RO NO. IV-A DECISION NO. 2013-29 DATED OCTOBER 21, 2013 AND