Sambeli vs Province of Isabela, 210 SCRA 80

Sambeli v Province of Isabela 210 SCRA 80

FACTS:

            

An agreement was entered into by and between the City of Isabela and ECS Enterprise for the purchase of 300 units of wheelbarrows, 837 pieces of shovels, and 1 set of radio communication equipment. Based on the finding of the Price Evaluation Division – COA Technical Services Office, the Provincial Auditor advised the Provincial Treasurer that an overpriced in the total amount of P619,042.20 exists out of the total price of P761,077.20 offered by ECS Enterprises or an overpayment of P195,893.10. It recommended that the future claim of ECS Enterprises be withheld. Provincial Auditor formally forwarded the matter with the Regional Director who formally endorsed the stand. ECS appealed the decision but was denied for lack of merit.

            

Hence this instant petition. Petitioner assails the ruling of the COA as not valid. It contends that the contract of sale has not only been perfected between the Province of Isabela and petitioner but delivery has been made by it with the corresponding partial payment by the Province of Isabela. Thus, it is allegedly incumbent upon COA to authorize the payment of the balance because to act otherwise will constitute an impairment of contract.

ISSUE:

            

Whether the ruling of COA is invalid so far as it will constitute impairment of contracts?

HELD:

           

In the exercises of the regulatory power vested upon it by the Constitution, the Commission on Audit adheres to the policy that government funds and property should be fully protected and conserved and that irregular, unnecessary, excessive or extravagant expenditures or uses of such funds and property should be prevented. On the proposition that improper or wasteful spending of public funds or immoral use of government property, for being highly irregular or unnecessary, or scandalously excessive or extravagant, offends the sovereign people's will, it behooves the Commission on Audit to put a stop thereto.                       

. . . No less than the Constitution has ordained that the COA shall have exclusive authority to define the scope of its audit and examination, establish the techniques and methods required therefor, and promulgate accounting and auditing rules and regulations, including those for the prevention and disallowance of irregular, unnecessary excessive, extravagant or unconscionable expenditures or use of government funds and properties. (Art. IX D, Sec. 2 (2) 1987 Constitution of the Philippines)