Art. IX.

Constitutional Commissions
Sec. 1. The Constitutional Commissions, which shall be independent,
are the Civil Service Commission, the Commission on Elections and
the Commission on Audit.

Take note: CHR is considered as lower in rank than these 3 commissions

Reasons:

1. The terms of officers in 3 ConCom are fixed by constitution while in the

CHR by law

2. Appointment of officers of the latter requires confirmation of the CA

while the latter does not

3. The officers of the former are impeachable while in the latter, not
impeachable

4. The former enjoys fiscal autonomy while the latter enjoys very limited
form of fiscal of autonomy

Section 2. No member of a Constitutional Commission shall, during

his tenure, hold any other office or employment. Neither shall he
engage in the practice of any profession or in the active
management or control of any business which, in any way, may be
affected by the functions of his office, nor shall he be financially
interested, directly or indirectly, in any contract with, or in any
franchise or privilege granted by the Government, any of its
subdivisions, agencies, or instrumentalities, including
government-owned or controlled corporations or their subsidiaries.

1. Cannot hold any other office/employment.

it does not distinguish w/n employment is public or private… note that in

congress, no prohibition from holding private employment… in the executive,
there is prohibition of private employment

2. Cannot engage in the practice of any profession

Does not apply to congress but applies to executive.. congressman can

practice law but only cannot appear before a court..

3. Cannot be in active management or control of any business which may

be affected by the functions of his office

In congress, THERE IS NO PROHIBITION THEY ARE ONLY REQUIRED TO

DIVULGE THE BUSINESS, total prohibition in executive department.. In
ConCom, the prohibition is narrower as the prohibition is limited only in the

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active management or control in any business which may be AFFECTED BY
HIS FUNCTION.

EX. A cabinet member cannot be a board member in sAn miguel but a

commisioner comelec can be….. But he cannot be a boardmember of PICOP
which produces papers or ink producering company

4. Cannot be financially interested, directly or indirectly, in any contract with

the government, any of its subdivisions... subsidiaries

Institutional Independence Safeguards:

1. Salary is fixed by law and cannot be decreased (Sec. 3)

2. Power to appoint their officials (Sec. 4)

3. Fiscal Autonomy (Sec. 5)

4. Power to Promulgate Rules (Sec. 6)

5. Prohibition from appointments in an acting capacity

Section 7. Each Commission shall decide by a majority vote of all its

Members, any case or matter brought before it within sixty days
from the date of its submission for decision or resolution. A case or
matter is deemed submitted for decision or resolution upon the
filing of the last pleading, brief, or memorandum required by the
rules of the Commission or by the Commission itself. Unless
otherwise provided by this Constitution or by law, any decision,
order, or ruling of each Commission may be brought to the Supreme
Court on certiorari by the aggrieved party within thirty days from
receipt of a copy thereof.

Take note!!!!!!!

Judicial Review of Decisions:

1. certiorari within 30 days only!

a. COMELEC, COA – to Supreme Court
b. CSC – to CA by certiorari (RA No.7902)

2011 Bar Exam

15. Each of the Constitutional Commissions is expressly described as

“independent,” exemplified by its

A. Immunity from suit

B. Fiscal autonomy
C. Finality of action
D. Collegiality

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ARTICLE IX

D. THE COMMISSION ON AUDIT

Section 1. (1) There shall be a Commission on Audit composed of a

Chairman and two Commissioners, who shall be natural-born
citizens of the Philippines and, at the time of their appointment, at
least thirty-five years of age, Certified Public Accountants with not
less than ten years of auditing experience, or members of the
Philippine Bar who have been engaged in the practice of law for at
least ten years, and must not have been candidates for any elective
position in the elections immediately preceding their appointment.
At no time shall all Members of the Commission belong to the same
profession.

Take note the number of officers

COA has 3
COMELEC HAS 7
CSC HAS 3

(2) The Chairman and the Commissioners shall be appointed by the

President with the consent of the Commission on Appointments for
a term of seven years without reappointment. Of those first
appointed, the Chairman shall hold office for seven years, one
Commissioner for five years, and the other Commissioner for three
years, without reappointment (7-5-3). Appointment to any vacancy
shall be only for the unexpired portion of the term of the
predecessor. In no case shall any Member be appointed or
designated in a temporary or acting capacity.

Qualifications/COA

1. Natural-born citizens At least 35 years of age

2. CPA or lawyer with 10 years practice [not same profession]
3. Not a candidate in the immediately preceding election
(TAKE Note THE CSC PROVISION which provides that no if you lose in
the election, you cannot be appointment in any appointive public
office within 1 year… HERE, must not be a CANDIDATE in the
immediately preceding election! So 3 years
4. [No designation in temporary or acting capacity] [No reappoint…]

Section 2. FUNCTIONS OF COA

The Commission on Audit shall have the power, authority, and duty
to examine, audit, and settle all accounts pertaining to the revenue

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and receipts of, and expenditures or uses of funds and property,
owned or held in trust by, or pertaining to, the Government, or any
of its subdivisions, agencies, or instrumentalities, including
government-owned or controlled corporations with original
charters, and on a post- audit basis:

Functions

1. To examine & audit government revenue/receipt- money going to

the government

2. To examine and audit government expenditures-money going out

from the treasury

3. To settle government accounts- refers to state immunity.. Since

government cannot be sued, you go directly to coa to settle what is due
to your from the government

Parreno v. COA, 523 SCRA 390 (2007):

Can it declare a law unconstitutional?

No!

Required to be Audited

1. Government
2. Subdivisions (lgu), agencies or instrumentalities (gsis, sss)
3. Govt-owned or controlled corporations with original charters (those
created directly by law)

 constitutional bodies, commissions and offices that have been granted

fiscal autonomy under this Constitution;

 autonomous state colleges and universities;

 other government-owned or controlled corporations and their

subsidiaries; and

 such non-governmental entities receiving subsidy or equity, directly or

indirectly, from or through the Government, which are required by law
or the granting institution to submit to such audit as a condition of
subsidy or equity. However, where the internal control system of the
audited agencies is inadequate, the Commission may adopt such
measures, including temporary or special pre-audit, as are necessary
and appropriate to correct the deficiencies. It shall keep the general
accounts of the Government and, for such period as may be provided by
law, preserve the vouchers and other supporting papers pertaining
thereto.

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NOT DISCUSSED

Subject to post-audit (ONLY)

1. Those enjoying fiscal autonomy (judiciary, constitutional commissions)

2. Autonomous colleges and universities (UP, USEP)

3. Gov’t corporations without original charters, and their subsidiaries

(GSIS, SSS)

4. Non-governmental agencies receiving subsidies (FROM THE

GOVERNMENT SPECIFICALLY FROM PORK BARREL OF CONGRESSMAN)

 Boy Scouts of the Philippines v. COA, 651 SCRA 146 (2011)

The Boy Scouts of the Philippines (BSP) was created as a public corporation
under Commonwealth Act No. 111, as amended by Presidential Decree No.
460, to implement the state policy of promoting the well-being of the youth.
However, in 1992, RA No. 7278 amended the BSP’s charter, the most salient
of which is the alteration of the composition of the National Executive Board
of the BSP. The said RA virtually eliminated the “substantial government
participation” in the National Executive Board by removing: (i) the President
of the Philippines and executive secretaries, with the exception of the
Secretary of Education, as members thereof; and (ii) the appointment and
confirmation power of the President of the Philippines, as Chief Scout, over
the members of the said Board. The State does not appropriate or invest in
the BSP. What RA 7278 only provides is that the Government or any of its
subdivisions, branches and instrumentalities can from time to time donate
and contribute funds to the BSP. Is the BSP still subject to the COA’s
audit jurisdiction?

Held: Yes. The BSP is a public corporation or a government agency or

instrumentality with juridical personality, which does not fall within the
constitutional prohibition in Article XII (CONGRESS CANNOT CREATE
PRIVATE CORPORATIONS), Section 16, notwithstanding the amendments to
its charter. Not all corporations, which are not government owned or
controlled, are ipso facto to be considered private corporations as there
exists another distinct class of corporations or chartered institutions which
are otherwise known as “public corporations.” Art. 2, par. 2, Civil Code.
These corporations are treated by law as agencies or instrumentalities of the
government which are not subject to the tests of ownership or control and
economic viability but to different criteria relating to their public
purposes/interests or constitutional policies and objectives and their
administrative relationship to the government or any of its Departments or
Offices.

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OTHERWISE STATED: BSP IS STILL GOVERNMENT INSTRUMENTALITY OR
AGENCY…… THOUGH NOT GOCC, IT PERFORMS SOME GOVERNMENTAL
FUNCTION.. HENCE SUBJECT TO COA….

NOTE THE PROHIBITION ON THE PRESIDENT AND VP from HOLDING ANY

OTHER OFFICE… TODAY BINAY HEADS THE BSP….

Which one is subject to both pre- and post audit by the Commission
on Audit?

a. City of Davao (Govt. Subdivision)

b. Commission on Human Rights (constitutional commission)
c. University of the Philippines (autonomous universities)
d. Philippine National Construction Corporation (GOCC with original
Charter)

State which is outside the jurisdiction of the Commission on

Audit (COA)? [5%]

(a) Davao City Water District (public corporation)

(b) Philippine Airlines, Inc. (private co.)
© Land Bank of the Philippines
(d) University of Southeastern Philippines

Rotational Scheme[1999, No. 3]/ 2010, No. 25 MEMO

1. The terms of the first 3 commissioners start on the same date

2. Any vacancy should be filled in for the unexpired balance of the term

To what other constitutional offices does the rotational scheme of

appointments apply?] APPLY ONLY IN THE 3 COMMISSIONS?

2001, No. 7: The Philippine National Bank was then a leading

government-owned banks and it was under the audit jurisdiction of the
Commission on Audit. A few years ago, it as privatized. What is the
effect, if any, of the privatization of PNB on the audit jurisdiction of
the COA? [PAL v. COA, 1995---]NO MORE WITHIN COA’S JURISDITION!

1998, 2: Is there a distinction between 2 types of government-owned or

controlled: those with original charters and those which are subsidiaries of
such with respect to the prohibiting on members of Constitutional
Commissions from being financially interested in contracts and franchises?

MULTIPLE CHOICE BAR

In which instance is there a distinction between government owned

and controlled corporations with original charters on the one hand,

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and those which are subsidiaries of such corporations, on the other,
in treatment by the Constitution?

a. The rule prohibiting the appointment of spouse and relatives of the

President within the 4th civil degree. APPLIES ALSO TO SUBSIDIARY

b. the rule making it incompatible for members of the Congress to hold

offices or employment in government.. IT APPLIES TO SUBSIDIARY

c. The rule providing post audit by the COA on certain government

agencies.. IT DOES!!!

d. The rule prohibiting members of the Constitutional Commissions from

being interested in contracts and franchises or privileges granted by the
government. IT DOES

e. The rule requiring Congress to provide for a system of

standardization of compensation of government officials and
employees. IT DOES NOT APPLY TO SUBSIDIARIES

1997, No. 7:

A month before the forthcoming election, A, one of the incumbent

commissioners of the Commission on Elections died while in office
and B, another commissioner, suffered a severe stroke. In view of
the proximity of the elections and to avoid paralization of the
Commission on elections, the President who was not running for
any office, appointed Commissioner C of the Commission on Audit,
who was not a lawyer but a certified public accountant by
profession, Ad Interim commissioner to succeed A, and designated
by way of a temporary measure, Associate Justice D of the Court of
Appeals as Acting Associate Commissioner during the absence of
Commissioner B. Is the President correct?

 No!
 As to C, it is valid..
 As to D. invalid because
1. The appointment of Commission in COMELEC cannot be
made temporary.. It must be permanent and not acting capacity
2. SC justice is prohibited from holding any position in a quasi
judicial body

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