G.R. No. 249061 - PHILIPPINE HEALTH INSURANCE CORPORATION, VS. COMMISSION ON AUDIT, MICHAEL G. AGUINALDO, CHAIRPERSON.R E S O L U T I O N - Supreme Court E-Library

Ruling

WHEREFORE , premises considered, the Petition for Review of [PhilHealth] Regional Office (RO) No. V, Legazpi City, represented by its Officers-in-Charge, Mr. Orlando D. Iñigo, of Commission on Audit (COA) RO No. V Decision No. 2014-C-024 dated June 10, 2014 is PARTIALLY GRANTED . Accordingly, COA RO No. V Decision No. 2014-C-024 dated June 10, 2014, and Notice of Disallowance (ND) Nos. 11-027(10) to 11-029(10), 11-030(09), 11-031(10) to 11-037(10) and 11-038 to 11-044, all dated August 9, 2011; and 11-048 dated September 28, 2011, are hereby MODIFIED , in that the payees need not refund the disallowed benefits received. The approving and certifying officers however, shall remain solidarily liable for the disallowance amounting to [PHP] 4,146,213.85. The Audit Team Leader and the Supervising Auditor, PHIC RO No. V, are hereby directed to issue a Supplemental ND to include as persons liable, the PHIC Board of Directors, who issued and approved the Board Resolutions granting the disallowed benefits and allowances. [42] (Emphasis in the original) PhilHealth ROV filed a Motion for Reconsideration [43] primarily seeking reconsideration of the determination on the solidary liability of the approving and certifying officers. PhilHealth ROV argued that the approving and certifying officers were akin to passive recipients in that they were in honest belief that the Office Orders issued by the PhilHealth President and Chief Executive Officer (CEO) were legal and issued in the PhilHealth Board's valid exercise of power. The reliance of the approving and certifying officers on the PhilHealth Board's resolutions bolster their position of good faith. [44] In its Resolution, dated September 27, 2018, the COA CP denied said Motion for Reconsideration. Undaunted PhilHealth ROV filed this Petition before the Court to assail the Decision of the COA CP. In its September 24, 2019, Resolution, the Court required the respondents, COA and its Chairperson Michael G. Aguinaldo to file their Comment. [45] Subsequently, the respondents filed Comment on the petition, [46] dated January 9, 2020, through the Office of the Solicitor General ( OSG ). The Court also required PhilHealth to file a Reply on the respondents' Comment. [47] The PhilHealth, through the Office of the Government Corporate Counsel ( OGCC ) complied by filing its Reply, [48] dated June 17, 2020. In its Resolution, [49] dated March 28, 2023, the Court required the parties to move in the premises within 10 days from notice. Respondents, complied with the Resolution through their Compliance and Manifestation, [50] dated June 20, 2023. Similarly, PhilHealth filed its Compliance, [51] dated July 10, 2023, informing the Court that it has submitted a letter, [52] dated June 14, 2023, addressed to President Ferdinand R. Marcos, Jr. requesting for post facto presidential approval of the allowances, benefits, and incentives ( ABIs ) granted to PhilHealth officers and employees but were subsequently disallowed. [53] Ph