G.R. No. 222710 - PHILIPPINE HEALTH INSURANCE CORPORATION, VS. COMMISSION ON AUDIT, CHAIRPERSON MICHAEL G. AGUINALDO, DIRECTOR JOSEPH B. ANACAY AND SUPERVISING AUDITOR ELENA L. AGUSTIN.DECISION - Supreme Court E-Library

Ruling

Accordingly, public health workers (PHWs) were granted allowances and benefits, among others, the longevity pay, which states: Section 23. Longevity Pay . - A monthly longevity pay equivalent to five percent (5%) of the monthly basic pay shall be paid to a health worker for every five (5) years of continuous, efficient and meritorious services rendered as certified by the chief of office concerned, commencing with the service after the approval of this Act. [6] (Emphasis ours) Pursuant to RA No. 7305, which mandates the payment of longevity pay to public health workers, former Department of Health (DOH) Secretary Alberto G. Romualdez, Jr. issued a Certification dated February 20, 2000, declaring PhilHealth officers and employees as public health workers. [7] For another, the Office of the Government Corporate Counsel (OGCC) in its Opinion 064, Series of 2001, dated April 26, 2001 [8] , stated that the term health-related work under Section 3 [9] of RA No. 7305, includes not only the direct delivery or provision of health services but also the aspect of financing and regulation of health services. Thus, in its opinion, the PhilHealth officers and employees were deemed engaged in health-related works for purposes of entitlement to the longevity pay. [10] On August 1, 2011, former PhilHealth President and CEO Dr. Rey B. Aquino issued Office Order No. 0053, S-2011, prescribing the guidelines on the grant of longevity pay, incorporating it in the basic salary of qualified PhilHealth employees for the year 2011 and every year thereafter. [11] On January 31, 2012, the PhilHealth Board passed and approved Resolution No. 1584, S. 2012, which among others, confirmed the grant of longevity pay to its officers and employees for the period of January to September 2011 in the amount of PhP5,575,294.70. [12] However, on post-audit of the Personal Services account for Calendar Year (CY) 2011, COA Supervising Auditor Ms. Elena C. Agustin (Supervising Auditor Agustin), also a respondent in this case, issued Audit Observation Memorandum (AOM) 2012-09 (11) dated April 30, 2012, which found lack of legal basis for the grant of longevity pay, thus recommended the discontinuance of the grant thereof. [13] On May 18, 2012, PhilHealth, through its then President and CEO Dr. Eduardo P. Banzon (Dr. Banzon) asserted that PhilHealth personnel were public health workers, as determined by the DOH in its February 20, 2000 Certification and opined by the OGCC in its Opinion 064, Series of 2001 dated April 26, 2001 and therefore entitled to the grant of longevity pay under RA No. 7305. [14] However, Supervising Auditor Agustin found unsatisfactory the justifications for the grant of longevity pay, and thus issued ND No. H.O. 12-005 (11) dated July 23, 2012. [15] Philhealth received the ND No. H.O. 12-005 (11) on July 30, 2012, and after 179 days from receipt thereof or on January 25, 2013, Philhealth filed its appeal memorandum before the COA Corporate Government Sector. The COA