G.R. No. 254394 - LIBERTAD O. ALAMEDA, D.M.D., MUNICIPAL MAYOR, MARIA LOURDES A. NAVAJA, MUNICIPAL ACCOUNTANT (RETIRED), AND ROSENDA D. LAMELA, MUNICIPAL BUDGET OFFICER, VS. COMMISSION ON AUDIT, REPRESENTED BY MICHAEL G. AGUINALDO, CHAIRPERSON, JOSE A. FABIA, COMMISSIONER, AND ISABEL D. AGITO, COMMI

Ruling

WHEREFORE , premises considered, Commission on Audit Regional Office No. XIII Decision No. 2015-020 dated December 14, 2015 is hereby APPROVED . Accordingly, Notice of Disallowance No. 15-001-101-(13&14) dated January 26, 2015 in the total amount of P1,248,085.69 is MODIFIED , exempting Dr. Edmund L. Lamela and Ms. Julia R. Orcullo from liability under the disallowance. [3] Impugned likewise is the Resolution No. 2020-291 [4] dated 31 January 2020, which denied the Joint Partial Motion for Reconsideration [5] of the foregoing Decision. The precursor facts of the case unfurl as follows: On 11 September 2012, Dr. Edmund L. Lamela (Dr. Lamela) was appointed by former Mayor Honolulu C. Go as Municipal Health Officer (MHO) of San Agustin, Surigao del Sur under a temporary appointment. [6] His appointment was valid for 12 months pursuant to Executive Order No. 292, otherwise known as the Administrative Code of 1987. During the 2013 national and local elections, petitioner Libertad O. Alameda (Alameda) was elected as the new mayor of San Agustin. Ensuingly, she performed her duties and exercised her functions as the Municipal Mayor. On 13 February 2015, Alameda, through petitioner Maria Lourdes A. Navaja (Navaja), then Municipal Accountant of San Agustin, received a copy of the Notice of Disallowance [7] (ND) dated 26 January 2015 issued by the COA Team 2 Local Government Sector (LGS) Surigao del Sur. The ND covered a total amount of P1,248,085.69 representing salaries, personnel benefits, and other operating expenses of Dr. Lamela from 12 September 2013 to 31 December 2014. [8] Several officials were identified as liable for the transaction, namely: Name Position/Designation Nature of Participation in the Transaction 1. Libertad O. Alameda Municipal Mayor For approving the payment 2. Maria Lourdes A. Navaja Municipal Accountant For certifying as to completeness of supporting documents 3. Julia R. Orcullo Municipal Treasurer For certifying availability of funds 4. Rosenda D. Lamela Municipal Budget Officer For certifying appropriation/allotment necessary and lawful 5. Edmund L. Lamela Municipal Health Officer For receiving the payment 6. Abundia P. Salinas Administrative Officer IV/HRMO Designate As the HRMO Designate [9] Taking umbrage at the foregoing findings, petitioners Dr. Lamela, Navaja, and Municipal Budget Officer Rosenda Lamela (MBO Lamela) (collectively, petitioners) lodged an Appeal Memorandum, [10] together with Abundia Salinas (Salinas) and Julia Orcullo (Orcullo) before the Regional Office No. XIII of the COA in Butuan City, Agusan del Norte. Au fond , they sought to set aside the ND, positing that Dr. Lamela's performance of duties and functions as MHO from September 2013 to December 2014, coupled with his numerous accomplishments, redounded to the benefit of the Municipality of San Agustin. Thence, he took on the duty of the MHO in a de facto capacity, and as such, he was legally entitled to the emoluments of the office. [11] Petition