De Jesus Vs COA
De Jesus Vs COA
De Jesus Vs COA
Commission on Audit
G.R. No. 109023
August 12, 1998
Facts:
Prior to July 1, 1989, employees of the Local Water Utilities Administration
(LWUA) were receiving honoraria for their roles in the LWUA Board
Secretariat and the Pre-qualification, Bids, and Awards Committee.
However, on July 1, 1989, the Department of Budget and Management
(DBM) issued Corporate Compensation Circular No. 10 (DBM-CCC No.
10), which stopped the payment of allowances and additional
compensation to government officials and employees, including the
petitioners. Respondent Leonardo Jamoralin, acting as the corporate
auditor, disallowed the payment of honoraria to the petitioners in line
with DBM-CCC No. 10. The petitioners contested the validity and
implementation of DBM-CCC No. 10 before the Commission on Audit
(COA). The COA upheld the validity of DBM-CCC No. 10 and supported
the refusal of the honoraria. Consequently, the petitioners brought their
case to the Supreme Court.
Issue:
Whether or not DBM-CCC No. 10 is legally effective despite its lack of
publication in the Official Gazette.
Ruling:
The Supreme Court decided in favor of the petitioners, ruling that for
DBM-CCC No. 10 to take effect and be enforceable, it must be published
either in the Official Gazette or in a widely circulated newspaper in the
Philippines. The Court set aside the COA's decision and instructed the
respondents to subject the petitioners' honoraria to audit. It stressed that
DBM-CCC No. 10, being an administrative circular implementing existing
laws, falls under the Tanada v. Tuvera doctrine, which mandates the
publication of laws and administrative circulars for their efficacy and
enforceability. The Court highlighted that DBM-CCC No. 10 isn't merely
interpretative or internal but impacts government employees' allowances
and compensation. Thus, publication is essential to allow affected officials
and employees to voice their concerns, aligning with democratic
principles and fairness.