0 valutazioniIl 0% ha trovato utile questo documento (0 voti)
260 visualizzazioni4 pagine
DBP seeks to set aside COA Decision which disallowed in audit the dividends distributed under the Special Loan Program to the members of the DBP Gratuity Plan. The payments were disallowed on the ground that the distribution of the Gratuity Plan fund to future retirees of DBP is irregular andconstituted the use of public funds for private purposes. Chairman Antonio of DBP also asked COA to lift the disallowance of the P11,626,414. Distributed as dividends under the SLP.
DBP seeks to set aside COA Decision which disallowed in audit the dividends distributed under the Special Loan Program to the members of the DBP Gratuity Plan. The payments were disallowed on the ground that the distribution of the Gratuity Plan fund to future retirees of DBP is irregular andconstituted the use of public funds for private purposes. Chairman Antonio of DBP also asked COA to lift the disallowance of the P11,626,414. Distributed as dividends under the SLP.
DBP seeks to set aside COA Decision which disallowed in audit the dividends distributed under the Special Loan Program to the members of the DBP Gratuity Plan. The payments were disallowed on the ground that the distribution of the Gratuity Plan fund to future retirees of DBP is irregular andconstituted the use of public funds for private purposes. Chairman Antonio of DBP also asked COA to lift the disallowance of the P11,626,414. Distributed as dividends under the SLP.
(DBP) seeks to set aside COA Decision which disallowed in audit the dividends distributed under the Special Loan Program (SLP) to the members of the DBP Gratuity Plan.The DBP is a government financial institution with an original charter, ExecutiveOrder No. 81, as amended by Republic Act No. 8 523 (DBP Charter). In 1983, the Bank established a Special Loan Program availed thru the facilitiesof the DBP Provident Fund and funded by placements from the Gratuity Plan Fund. This Special Loan Program was adopted as part of the benefit program o f the Bank toprovide financial assistance to qualified members to enhance and protect the value of their gratuity benefits because Philippine retirement laws and the Gratuity Plan do notallow partial payment of retirement benefits. The program was su spended in 1986 butwas revived in 1991 thru DBP Board Resolution No. 066 dated January 5, 1991.Under the Special Loan Program, a prospective retiree is allowed the option to utilize in the form of a loan a portion of his outstanding equity in the gratuity fund and to invest it in a profitable investment or undertaking. The earnings of the investmentshall then be applied to pay for the interest due on the gratuity loan which was initiallyset at 9% per annum subject to the minimum investment rate resulting from the updatedactuarial study. The excess or balance of the interest earnings shall then be distributedto the investor-members.Pursuant to the investment scheme, DBP-TSD paid to the investor-members atotal of P11,626,414.25 representing the net earnings of the investments for the years1991 and 1992. The payments were disallowed by the Auditor under Audit ObservationMemorandum No. 93-2 dated March 1, 1993, on the ground that the distribution ofincome of the Gratuity Plan Fund (GPF) to future retirees of DBP is irregular andconstituted the use of public funds for private purposes which is specifically proscribedunder Section 4 of P.D. 1445.
Chairman Antonio of DBP also asked COA to lift the disallowance of theP11,626,414.25 distributed as dividends under the SLP on the ground that the latter
was simply a normal loan transaction.Issues:Whether or not the distribution of dividends under the SLP is valid.Decision:
NO. The beneficiaries or cestui que trust of the Fund are the DBP officials and employees who will retire. Retirement benefits can only be demanded and enjoyed when the employee shall have met the last requisite, that is, actual retirement under the Gratuity Plan. In this case, dividends were di stributed to employees even beforeretirement.As Chairman Zalamea himself noted, neither the Gratuity Plan nor our laws onretirement allow the partial payment of retirement benefits ahead of actual retirement. Itappears that DBP sought to circumvent these restrictions through the SLP, which released a portion of an employees retirement benefits to him in the form of a loan. Severance of employment is a condition sine qua non for the release ofretirement benefits. Retirement benefits are not meant to recompense employees whoare still in the employ of the government. That is the function of salaries and otheremoluments. Retirement benefits are in the nature of a reward granted by the State to agovernment employee who has given the best years of his life to the service of hiscountry. Case: DBP v COA (2006)
Facts:In 1988, DBP purchased 5 Mitsubishi L-300 vans and 14 Mitsubishi Lancer carsworth a total of P5,525,000 for its 5 regional offices and 14 branches pursuant to itsmodernization program. During this period, DBP was undergoing a process ofrehabilitation and the vehicles were utilized to bolster its efforts at fund generation whichrequired the mobilization of its personnel in order to reach out to a wider base ofclientele.In its 1992 Annual Audit Report, COA included these transactions among its adverse audit findings alleging DBPs non -compliance with Letter of Instruction No. 667and Letter of Implementation No. 29 which require Presidential approval for purchase oftransport. The auditor recommended the filing of administrative charges against theresponsible officers but it was never effected for the responsible officers later ceased tobe connected with the agency.In 1998, the COA Auditor issued a Notice of Disallowance on the subject transaction. This impelled DBP, through their President and CEOs letter, to move for the lifting of the disallowance of P5,525,000.00. The purchase was justified asnecessary for its modernization program since it was undergoing a process ofrehabilitation at the time and that their branches were in dire need of additional vehiclesfor improved mobility to support its thrust of providing financial assistance to small andmedium enterprises in the countryside to generate employment and spur economicdevelopment.The COA Auditor recommended the lifting of the audit disallowance. But contrarythereto, the Director, Corporate Audit Office I, issued a Memorandum finding DBPwantonly disregarded the requirement of Presidential approval which is a condition sine
qua non for the purchase of vehicles under Letter of Instruction No. 667 which provides,inter alia, that:When authorized to purchase motor vehicles pursuant to Letter ofImplementation No. 29 dated December 5, 1975, national government agencies,including government-owned and controlled corporations and state colleges anduniversities shall observe the following maximum standard specifications:x x x x x x x x x5.0 Exceptions may be allowed only as specifically authorized by the President.Letter of Implementation No. 29 provides:Pursuant to Presidential Decree No. 830, dated November 27, 1975 and inconnection with Letter of Implementation No. 28 placing the Budget Commissionimmediately under the President of the Philippines, the Commissioner of theBudget is hereby delegated authority to take final action on the followingbudgetary matters heretofore referred by this Commission to the ExecutiveSecretary:x x x x x x x x xThe following, among others, shall continue to be referred to the President forpersonal consideration and action:x x x x x x x x x5. Purchase of transport and construction equipment, books, drugs andmedicines, and other items.DBP assailed COA Decision No. 2001-151 which denied its motion for the lifting of thedisallowance. The Commission affirmed the subject disallowance for want of priorPresidential approval contrary to Letter of Implementation No. 29 and LOI No. 667.Issue:Whether or not COA committed GADALEJ in disallowing the purchase of motorvehicles by DBPDecision:COA did not commit grave abuse of discretion in disallowing the purchase ofmotor vehicles by DBP.Based on Letter of Instruction No. 667 and Letter of Implementation No. 29, priorPresidential authorization is required before DBP, being a government- owned andcontrolled corporation, could purchase the subject vehicles. Verily, Letter of InstructionNo. 667 is not a "mere technicality" as DBP contends, otherwise, administrativeagencies would be free to utilize such funds freely as long as they can justify their usethrough the mere invocation of laudable purposes. Since the disallowance was made
pursuant to the applicable law, it cannot be assailed as an act of grave abuse ofdiscretion