G.R. No. 251178 - SMALL BUSINESS CORPORATION, VS. COMMISSION ON AUDIT (COA), COA CHAIRPERSON MICHAEL G. AGUINALDO, COA CLUSTER 2-CORPORATE GOVERNMENT SECTOR DIRECTOR MARY S. ADELINO. D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, upon the PERC's recommendation, salary increases for qualified SBC personnel in the aggregate amount of P4,489,002.09 were approved and correspondingly paid on various dates within the period from September 1, 2012 to September 30, 2014. [17] Meanwhile, on June 25, 2014, SBC wrote a letter [18] to the Governance Commission for GOCCs [19] (GCG) requesting the confirmation of its payment of salary increases for the year 2013. The request, however, was denied by the latter in a Memorandum [20] dated July 8, 2014 on account of the continued effectivity of the moratorium imposed by Section 9 of EO No. 7. [21] Subsequently, on various dates in October 2014. the Audit Team Leader and Supervising Auditor of the COA issued a total of six (6) notices of disallowance [22] (subject disallowances) against the payment of the aforementioned salary increases for violation of EO No. 7, summarized by the COA as follows: [23] ND No./Date Particulars Amount 14-002-401000-(12) October 9, 2014 Merit increase and adjustment of other benefits due to increase in salary rates of 43 SBC personnel from September 1 , 2012 to September 30, 2014. P2,483,863.24 14-003-401000-(12) October 9, 2014 Salary differential due to step increment and adjustment of other benefits due to increase in salary rates of 4 SBC personnel from September 1, 2012 to September 30, 2014. 180,660.00 14-004-401000-(13) October 10, 2014 Salary differential due to step increment and other benefits due to the increase in salary rates of 3 SBC officials from March 15, 2013 to September 30, 2014. 450,166.64 14-005-401000-(13) October 10, 2014 Salary differential due to step increment and adjustment of other benefits due to the increase in salary rates of 26 SBC personnel from March 15, 2013 to September 30, 2014. 723,336.63 14-006-401000-(13) October 13, 2014 Salary differential due to step increment and adjustment of other benefits due to the increase in salary rates of 7 SBC senior officers from March 15, 2013 to September 30, 2014. 562,055.58 14-007-401000-(13) October 14, 2014 Salary differential due to step increment and adjustment of other benefits due to the increase in salary rates of 3 SBC regional office personnel from March 15, 2013 to September 30, 2014. 88,920.00 Total P4,489,002.09 The persons held liable by the COA under the subject disallowances were the approving and certifying officers as well as the payee-recipients of the disallowed amounts. These include: ( a ) SBC President and Chief Operating Officer Benel P. Lagua and SBC Strategy, Policy and Communications Office Head Melvin E. Abanto, as approving officers; [24] ( b ) Controllership Group Head Alfredo S. Dimaculangan, as certifying officer; [25] and ( c ) various SBC personnel, as payee-recipients. [26] Aggrieved, SBC appealed [27] to the Office of the Cluster Director of the COA's Corporate Government Sector (COA Cluster Director), arguing that the grants of salary increases were lawful since they were paid pursuant to