G.R. Nos. 210965 & 217623 - DEVELOPMENT BANK OF THE PHILIPPINES, VS. COMMISSION ON AUDIT.D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, in Board Resolution No. 0045 dated February 26, 2010, the Board of Directors resolved as follows: THEREFORE, be it resolved, as it is hereby resolved, to seek CONFIRMATION by the Office of the President of the Philippines of the power and authority of the DBP Board of Directors, independently of M.O. No. 20, to approve and allow the implementation and subsequent refinements of DBP's Compensation Plan, including but not limited to the following specific components of the Plan: (1) Basic salary structure as refined and reformulated (Annex A), including integration to basic pay of officers' allowance, meal allowance and longevity pay; provided that in the continuing implementation of the structure, DBP basic salary levels shall at least be equal to the basic salary levels of equivalent positions in SSL-covered agencies as adjusted under Joint Resolution No. 4; (2) Continuing implementation of benefits outside SSL (Annex B), including the Bank's motor vehicle lease-purchase program; (3) Grant of annual merit increases; (4) Implementation of DBP's Early Retirement Incentive Program (ERIP), the adoption and implementation of which has been recognized by the DBM as compliance with the government's rationalization plan as mandated by Executive Order No. 366 and by the Department of Finance as within the DBP Board's authority (pertinent letters of the DBM and of the Secretary of Finance to DBP are Annexes C and D); [and] (5) Authority given to DBP officers serving in DBP's subsidiaries to receive allowances and other benefits from such subsidiaries, provided such officers were properly designated and authorized as such in accordance applicable rules. Passed by the DBP Board of Directors on the 26 th day of February 2010. In view of the foregoing, we respectfully request Her Excellency's confirmation of the implementation of DBP's Compensation Plan from 1999 onward as authorized by the DBP Board of Directors. (Sgd.) REYNALDO G. DAVID President and CEO (Sgd.) PATRICIA A. STO. TOMAS Chairman APPROVED / DISAPPROVED [ but not to include members of the Board. Approval is good for the period up to June 30, 2010. ] [43] (Sgd.) H.E. GLORIA MACAPAGAL ARROYO President, Republic of the Philippines [44] G.R. No. 210965 DBP stresses that the allowances and benefits paid to DBP officers were disallowed mainly on the ground that the same did not have the approval of the President. The subsequent approval of the President, as reflected in the Letter dated 22 April 2010 cured the defect, making the subject disallowance moot and academic. We disagree with DBP's contention. As ruled by COA, the additional allowances and benefits received by DBP officers are covered by the constitutional proscription on double compensation. In particular, Section 8, Article IX (B) of the Constitution reads: Section 8. No elective or appointive public officer or employee shall receive additional, double, or indirect compensation, unless specifically authorized by law, nor accept w