G.R. NO. 157875 - DR. TERESITA L. SALVA,PRESIDENT OF THE PALAWAN STATE UNIVERSITY (FORMERLY PALAWAN STATE COLLEGE), VS. GUILLERMO N. CARAGUE, AS CHAIRMAN, COMMISSION ON AUDIT, RAUL FLORES, AS COMMISSIONER, COMMISSION ON AUDIT AND EMMANUEL M. DALMAN, IN HIS CAPACITY AS COMMISSIONER - Supreme Court E-

Ruling

WHEREFORE, in view of all the foregoing considerations and upon the recommendation of the Technical Services Division, COA Regional Office No. IV, Quezon City, that no new material evidence or substantial matters have been raised to warrant a reversal or modification of the subject decision, this Commission has no other recourse but to deny the instant motion for reconsideration. Accordingly, COA Decision No. 2000-273, dated September 26, 2000 is hereby affirmed with finality . Engr. Norberto S. Dela Cruz, Engr. Lucy Janet Pasion, Dr. Teresita Salva and the Manager, Integrand Development Construction, Inc. remain to be liable for the disallowed amount of P274,726.38. [5] Hence, the present Amended Petition for Certiorari under Rule 65 of the Rules of Court, claiming that the COA committed grave abuse of discretion amounting to excess or lack of jurisdiction x x x IN NOT FINDING THAT THE PETITIONER SHOULD NOT BE MADE LIABLE ON THE GROUND THAT SHE APPROVED IN GOOD FAITH THE AWARD; x x x WHEN IT AFFIRMED THE COMPUTATION OF THE AMOUNT OF DISALLOWANCE MADE BY THE COA TECHNICAL AUDIT SPECIALIST; x x x WHEN IT RENDERED THE ASSAILED RESOLUTION IN DENIAL OF THE PETITIONER'S RIGHT TO DUE PROCESS; x x x IN AFFIRMING THE LIABILITY OF THE PETITIONER WHILE ABSOLVING THE OTHER OFFICIALS AND EVEN THE BOARD OF TRUSTEES OF THE PSC, THUS VIOLATING HER RIGHT TO EQUAL PROTECTION. [6] The pivotal issue in this petition is whether or not petitioner should be held personally liable for the disallowed amount of P274,726.38. Petitioner is found liable under Section 103 of Presidential Decree No. 1445 or the Government Auditing Code of the Philippines, which provides: SECTION 103. General liability for unlawful expenditures .Expenditures of government funds or uses of government property in violation of law or regulations shall be a personal liability of the official or employee found to be directly responsible therefor. Under this provision, an official or employee shall be personally liable for unauthorized expenditures if the following requisites are present, to wit: (a) there must be an expenditure of government funds or use of government property; (b) the expenditure is in violation of law or regulation; and (c) the official is found directly responsible therefor. [7] Related to the foregoing is Section 19 of the Manual on Certificate of Settlement and Balances, [8] which states: 19.1 The liability of public officers and other persons for audit disallowances shall be determined on the basis of: (a) the nature of the disallowance; (b) the duties, responsibilities or obligations of the officers/ persons concerned; (c) the extent of their participation or involvement in the disallowed transaction; and (d) the amount of losses or damages suffered by the government thereby. x x x In the present case, the reason put forth by the COA in holding petitioner liable was due to the diversion of the sources for filling materials resulting in the use of additional equipment and ex