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[G.R. Nos. 151864-65.May 28, 2002]
PINANGAT vs. COA, et al.
EN BANC
Gentlemen:
Quoted hereunder, for your information, is a resolution of this Court dated MAY 28 2002 .
G.R. Nos. 151864-65(Rolando P. Pinangat vs. Commission on Audit and the Corporate Auditor of the Bangko Sentral ng Pilipinas.)
Petitioners assails the decision of the Comission on Audit finding him manifestly negligent in the performance of duty as an approving officer, consequently declaring petitioner solidarily liable with Eastern Assurance Surety Corporation Declaring Petitioner solidarily liable with Eastern Assurance Surety Corporation anf R.D. Tuazon Construction Corporation for the refund of the amount of P210, 715.53 which the government overpaid, for the construction of a Banko Sentral Regional Unit Building.
On February 12, 1997, the Bangko Sentral ng Pilipinas (BSP), through the Prequalification, Bids, and Awards Committee (PBAC), entered in to a contract with R.D Tuazon Construction, for the construction of the Bangko Sentral Regional Unit Building in Dagupan City in Consideration of a total price ofP30,148,345.60.Pursuant to the provisions of C14 of the Implementing Rules and Regulations of Presidential Decree No. 1594 otherwise known as The Law Prescribing Policies, Guidelines, Rules and Regulations For Government Infrastructure Program, the contracts stipulated that 10% of the progress payments made to the R.D. Tuazon in all its billings would be retained by BSP to cover uncorrected discovered defects and third party liabilities, and would be released only upon final acceptance of the project by BSP. Moreover, a performance bond in the amount of P9,044,503,68 was deposited to guarantee faithful and strict compliance with the contract and to be co-terminus with the final acceptance of the subject contract.
It appears that R.D. Tuazon incurred delays in the construction project.
On October 29, 1997, the Monetary Board, in Resolution No. 1452, allowed R.D. Tuazon to complete the project even beyond the deadline, subject to the imposition of liquidated damages, if warranted.But despite the above stated set-up, R.D. Tuazon failed to finish the project.
As of April 15, 1998, R.D. Tuazon was only able to finish 54.74% of the project or a negative slippage of 45.26% forcing BSP to take over the project and to authorize the bidding out of the unfinished balance of the project. BSP likewise witheld the retention money from R.D. Tuazon's progress payments in the aggregate amount of P1,837,261.58.
Subsequently, representatives from the Technical Division, COA Regional Office No. 1 La Union, conducted an Accomplishment Inspection of R.D. Tuazon.Thereafter, it was discovered that the total work accomplishment on the project was only 47.95% contrary to thereported 54.74% ( a discrepancy of 6.79% which was equivalent to P2,047,977.11).
In a third Indorsement dated December 15,1998, Auditor Dimagiba furnished petitioner Pinagat who is the Director of the BSP Building Management Department, with a copy of the Inspection Report and Requested immediate explanation of the noted variances.
In a memorandum dated February 8, 1999, petitioner acknowledged the contents of the report and admitted that the variance noted by the COA Team was similar to the findings of the BSP Inventory Team.
Consequently, in the notice of disallowance No. 99-04-01 dated April 5, 1999, the BSP Corporate Auditor disallowed the amount of P2,047,977.11 representing overpayment made by the BSP to R.D. Tuazon and held petitioner together with other persons liable for the refund of said amount.
The corporate Auditor based his decision on the fact that has an approving officer, petitioner failed to exercise due diligence when he did not to take the necessary measures to protect the interest of the BSP before approving the payment even upon knowledge of the noted variance between the actual work accomplished and the reported work accomplishment.
Aggrieved, petitioner filed a motion for reconsideration before the Commission on Audit which treated said motion as an appeal.
The appeal proved to be unavailing.Thus, the instant petition which must likewise fail.
The Court finds in grave abuse of discretion committed by the Commission on Audit in rendering the Assailed decision.Section 52 Chapter 9 Book 5 of the Administrativr Code Provides:
"SEC. 52.General Liability for Lawful Expenditures.- Expenditures of government funds or uses or government property in violation of law or regulations shall be a personal liability of the official or employee found to be directly responsible therefore."
Petitioner insist that a supervisory officer, it was not practical or humanly possible for him to carry out the inspection and evaluation of the project personally, hence he had to rely on his subordinates and the Project Construction Manager.Thus assuming that petitioner was negligent, the COA should have likewise impleaded his subordinate of instead of singling him out.
Truly, petitioner as Director of the Building Management Department was responsible for the approval of Certificates of the Inspection for Partial Accomplishment. Likewise, petitioner was the one who Recommended and approved the payments to R. D. Tuazon.Hence, Petitioner should not be allowed to pass the buck to his subordinates.
There is no doubt as to petitioner's negligence, as he himself admitted having knowledge of the variance in the work accomplishment as early as February 8, 1998.Despite his knowledge, petitioner in a memorandum dated March 20, 1998 to the PABC, still recommended payment to R.D Tuazon when it reported a Work Accomplishment of 53.99% as of February 20, 1998 and billed the BSP the Amount of P1,014,881.43.
Thus Section 38(1), Chapter 9, Book 1 of the Administrative Code applies in the case at bar.
"SEC. 38.Liability of Superior Officers.-(1) A Public officer shall not be civilly liable for acts done in the performance of his official duties, unless there is a clear showing of bad faith, malice or gross negligence."
WHEREFORE, the petition is DISMISSED.
Very truly yours,
LUZVIMINDA D. PUNO
Clerk of Court
(Sgd.) MA. LUISA D. VILLARAMA
Asst. Clerk of Court
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