G.R. No. 258527 - ARTHUR N. AGUILAR, MA. THERESA T. DEFENSOR, JEREMY Z. PARULAN, FERMIN S. LUSUNG, ANTONIO T. VILAR, ENRIQUE C. CUEJILO, JR., GUILLERMO N. HERNANDEZ, ROLANDO L. MACASAET, AND WILFREDO P. CU, VS. COMMISSION ON AUDIT.D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, the COA Audit Team found Aguilar, Defensor, Tolentino, Parulan, Lusung, Vilar, Paule, Cuejilo, Jr., Lucero, Benito, Hernandez, Puruganan, Macasaet, Cu, Gaston, Antonio, Armonio, Miriam M. Pasetes (Pasetes), and Glenna Jean R. Ogan (Ogan) (collectively, named petitioners) liable for the settlement of the disallowed amount, as follows: [26] Persons Liable Positions/Designations Nature of Participation in the Transaction Arthur N. Aguilar Chairman/Director Approved the payment; payee Ma. Theresa T. Defensor President/Chief Executive Officer (CEO) Approved the payment; payee Marvin V. Paule Member of the Board Approved the payment; signed checks and approved a check voucher for payment; payee Enrique C. Cuejilo[, Jr.] Member of the Board Approved the payment; signed checks and approved a check voucher for payment; payee Segundo M. Gaston Senior Vice-President; Head-Support of the Service Group Approved the payment; signed checks and approved check vouchers for payment; payee Miriam M. Pasetes Senior Vice-President, Head- Treasury Approved the payment; signed checks and approved check vouchers for payment; certified check vouchers; approved disbursements as budgeted; certified the availability of funds Glenna Jean R. Ogan Vice-President; Head-Legal Signed checks for payment Garth Noel P. E. Tolentino Member of the Board Payee Jeremy Z. Parulan Member of the Board Payee Fermin T. Lusung Member of the Board Payee Antonio T. Vilar Memberof the Board Payee Roy Eduardo T. Lucero Member of the Board Payee Ottomama Marahom Benito Member of the Board Payee Guillermo N. Hernandez Member of the Board Payee Abraham A. Puruganan Executive Vice-President-Director Payee Rolando L. Macasaet Former Director Payee Wilfredo P. Cu Former Director Payee Manuel Luis C. Antonio Vice-President, Head-TMD Payee Jaime Manuel F. Armonio Assistant Corporate Secretary Payee [27] Aggrieved, Tolentino, Cuejilo, Jr., Benito, Defensor, Hernandez, Parulan, and Vilar appealed ND No. 11-002-(2007-2010) to the COA Corporate Government Sector (CGS). [28] The Decision of the COA-CGS In its Decision No. 2014-02, [29] the COA-CGS denied the appeal and affirmed ND No. 11-002-(2007-2010), viz .: WHEREFORE, foregoing premises considered, the instant appeal is hereby DENIED. Accordingly, Notice of Disallowance No. ND) [sic] No. 11-002-(2007-2010) dated July 8, 2011 in the total amount of [PHP] 90,748,975.21 is hereby AFFIRMED. In rendering its Decision, the COA-CGS relied on Strategic Alliance Dev't Corp. v. Radstock Securities Limited , [30] where the Court declared that PNCC is a GOCC that is subject to the audit jurisdiction of the COA. The COA-CGS ruled that the gratuity benefits were disallowable in audit pursuant to DBM Circular Letter No. 2002-2, which proscribed the grant of personnel benefits to members of the Board. It also found that approval from the Office of the President (OP) was necessary for the gratuity benefits pursuant to Section 3, [31] OP Memorandum Order No. 2