G.R. No. 242342 - NATIONAL POWER CORPORATION BOARD OF DIRECTORS MARGARITO B. TEVES, ROLANDO G. ANDAYA, JR., PETER B. FAVILA, ARTHUR C. YAP, ELEAZAR P. QUINTO, RONALDO V. PUNO, AUGUSTO B. SANTOS, AND FROILAN A. TAMPINCO, VS. COMMISSION ON AUDIT.

Ruling

WHEREFORE, premises considered, the Petition for Review of National Power Corporation, Quezon City is hereby DENIED for lack of merit. Accordingly, Commission on Audit Corporate Government Sector - Cluster 3 Decision No. 2013-18 dated December 27, 2013 and Notice of Disallowance No. NPC-11-004-10 dated September 22, 2011, on the payment of the Employee Health and Wellness Program and Related Financial Assistance to the agency's Board of Directors, officials, and employees for the first quarter of 2010 in the total amount of P29,715,000.00 are AFFIRMED. [7] Unsatisfied, petitioners moved for reconsideration. In its March 15, 2018 Resolution, the COA partially granted the petitioners' motion for reconsideration. It appreciated good faith in favor of the passive recipients who merely received the benefit, but had not participated in the approval and release thereof. As such, the COA absolved them from refunding the disallowed amount. Nevertheless, it ruled that the officials, who authorized, approved or certified the grant or payments cannot be deemed in good faith because the laws and rules requiring prior approval from the Office of the President and the DBM were already effective prior to the grant of the subject allowances and benefits. The COA Resolution reads: WHEREFORE, premises considered, the Motion for Reconsideration is hereby PARTIALLY GRANTED. Accordingly, Commission on Audit (COA) Decision No. 2017-035 dated February 16, 2017, which affirmed COA Corporate Government Sector - Cluster 3 Decision No. 2013-18 dated December 27, 2013 and Notice of Disallowance (ND) No. NPC-11-004-10 dated September 22, 2011 on the payment of the Employee Health and Wellness Program and Related Financial Assistance to the agency's Board of Directors, officials, and employees for the first quarter of 2010 in the total amount of P29,715,000.00 is hereby AFFIRMED with MODIFICATION such that the passive recipients are no longer required to refund the disallowed benefits they have received in good faith. [8] Hence, this present petition raising the following issues: The Issues I [WHETHER THE] COA COMMITTED GRAVE ABUSE OF DISCRETION AMOUNTING TO A LACK OR EXCESS OF JURISDICTION IN RULING THAT EHWPRFA WAS A NEW BENEFIT[; and] II [WHETHER THE] COA COMMITTED GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION IN RULING THAT THE GRANT OF EHWPRFA NEEDED PRESIDENTIAL APPROVAL. [9] Petitioners argue that the EHWPRFA is not a new benefit as similar benefits had been granted in the past such as the Enhanced Comprehensive Health Benefit Program (CHBP). It explains that EHWPRFA was issued because the amount granted under the CHBP is no longer feasible owing to the exorbitant increase in the prices of medicine. Petitioners assail that EHWPRFA cannot be considered a new benefit as it merely expanded the wellness benefits already enjoyed by the NPC personnel. It laments that the EHWPRFA is an enforcement of the right of the NPC personnel to protect and promote