Orocio vs COA, 213 SCRA 109

Orocio vs COA 213 SCRA 109

FACTS:

            

On accident occurred at the Malaya Power Plant of the National Power Corporation (NPC) where two individuals suffered injury – Ernesto Pumaloy, an NPC employee, and Domingo Abodizo, a casual employee OPLGS, the janitorial contractor of the NPC. The two injured personnel were brought to the hospital.

           

NPC initially advanced the amount for hospitalization expenses for the treatment of Abodizo, and set up this as an account receivable from OPLGS deducted on a staggared basis from the latter's  billing against the NPC util the same was fully satisfied. Subsequently, OPLGS requested a refund of the total amount deducted from their billings representing payment of the advances made by the NPC. In the light of the favorable recommendation of the NPC legal counsel, the amount of hospitalization expenses was refunded to the contractor OPLGS.

            

The Unit Auditor of the Commission on Audit disallowed the refund of the hospitalizattion expenses of Abodizo contending that under the contract, there is no employee-employer relation between the NPC and the OPLGS employees. Hence,NPC is not answerable for such expenses. General Counsel asked for a reconsideration of the said disallowance denied. The COA Regional Director, herein respondent, confirmed the disallowance. NPC General Counself submitted a second request for reconsideration and justifies that his legal opinion is based on Sec 15-A of RA 6395 (NPC Charter) which provides that “... all legal matters shall be handled by the General Counsel of the Corporation...”

ISSUE:

       

Whether the disbursement on the basis of the legal opinion of the legal counsel of the NPC (quasi-judicial function) is within the scope of the auditing power of the COA?

HELD:

             

The Constitution grants the COA the power, authority and duty to examine, audit and settle all accounts pertaining to the expenditures or uses of funds and property pertaining to the Government or any of its subdivisions, agencies or instrumentalities, including government-owned or controlled corporations. The matter of allowing in audit a disbursement account is not a ministerial function, but one which necessitates the exercise of discretion. Besides, the OPLGS, Abodizo's employer, admitted that the incident was purely accidental and that there is no showing whatsoever in the accident report of any negligence on the part of the NPC or its employees.

            

The NPC, as a government-owned corporation, is under the COA's audit power. The COA should not be bound by the opinion of the legal counself of said agency or instrumentality which may have been the basis for the questioned disbursements, otherwise it would become a toothless tiger and its auditing functions would be a meaningless and futile exercise.