G.R. No. 237813 - JAMES ARTHUR T. DUBONGCO, PROVINCIAL AGRARIAN REFORM PROGRAM OFFICER II OF DEPARTMENT OF AGRARIAN REFORM PROVINCIAL OFFICE-CAVITE IN REPRESENTATION OF DARPO-CAVITE AND ALL ITS OFFICIALS AND EMPLOYEES, VS. COMMISSION ON AUDIT.DECISION - Supreme Court E-Library

Ruling

Accordingly, the assailed NDs are hereby affirmed. [10] Aggrieved, Lapid and Kagahastian filed a petition for review before the COA En Banc . The Ruling of the COA En Banc In a Decision, [11] dated May 2, 2017, the COA held that the grant of the CNA Incentive to DARPO-Cavite officials and employees, sourced from the CARP Fund, was illegal. It reasoned that the source of funds for the grant was not taken from the savings of the allotment for MOOE, but was charged against the CARP Fund of the agency. The COA added that the CARP Fund is a special fund which could only be utilized for the purpose for which it was created, that is, solely for the implementation of CARP projects. It further declared that the opinion of then DBM Secretary Rolando G. Andaya, Jr. (Secretary Andaya, Jr.) does not bind the COA which is constitutionally mandated to audit expenditure of public funds. The COA pronounced that good faith could not be appreciated considering that several audit disallowances on the CNA Incentive granted to DARPO officials and employees had previously been issued by auditors on the ground of illegality. Moreover, the grant of the CNA Incentive sourced from the CARP Fund is clearly prohibited by existing laws and regulations. The COA disposed the case in this wise: WHEREFORE , premises considered, the Petition for Review of Mr. Felixberto Q. Kagahastian and Ms. Cynthia E. Lapid, both Provincial Agrarian Reform Officer II, Department of Agrarian Reform Provincial Office (DARPO) Cavite, is hereby DENIED for lack of merit. Accordingly, the Commission on Audit Regional Office No. IV Decision No. 2011-21 dated September 1, 2011 and Notice of Disallowance Nos. 11-01-158-CNA(09) and 11-02-158-CNA(09) dated January 17, 2011 and January 31, 2011, respectively, on the payment of Collective Negotiation Agreement Incentives to DARPO-Cavite officials and employees, in the total amount of P2,694,800.00 are AFFIRMED . The Prosecution and Litigation Office, Legal Services Sector, this Commission, is hereby directed to forward the case to the Office of the Ombudsman for investigation and filing of appropriate charges, if warranted, against the persons liable for the transaction. [12] Petitioner James Arthur T. Dubongco (petitioner), the current Provincial Agrarian Reform Program Officer II of DARPO-Cavite, moved for reconsideration, but the same was denied by the COA on October 26, 2017. [13] Hence, this petition for certiorari . The Issues WHETHER THE CARP FUND OR FUND 158 CAN BE A VALID SOURCE FOR THE GRANT OF CNA INCENTIVE TO RANK-AND-FILE EMPLOYEES; and WHETHER THE RECIPIENTS MAY BE HELD LIABLE FOR THE REFUND OF THE DISALLOWED CNA INCENTIVE. Petitioner argues that although the CARP Fund is a special fund, DARPO-Cavite holds the same for its own use and not for the benefit of another government agency; that although DBM Budget Circular No. 2006-01 uses the word "shall," the said circular did not specify the source of the savings which would be used in the grant o