SC upholds COA ban on cash reward for 4 Manila ex-councilors

MANILA, Philippines - The Supreme Court (SC) affirmed a decision by the Commission on Audit (COA) to disallow the payment of a cash reward as part of the Exemplary Public Service Award (EPSA) to four former three-term councilors of Manila.

In a 16-page decision penned by Justice Diosdado Peralta, the SC held that the COA did not abuse its discretion in disallowing the EPSA monetary award as it “is excessive and tantamount to double and additional compensation” and is not authorized under the salary standardization law. The EPSA was authorized under a local ordinance.

The COA’s ruling prompted former Manila councilors Luciano Veloso, Abraham Cabochan, Jocelyn Dawis-Asuncion and Marlon Lacson to file a petition for review with the SC, which later issued a status quo ante order.

Prior to the COA’s decision, the petitioners had received partial payments of P1,658,989.08 each.

The SC also ordered the COA to desist from enforcing the notice of finality of its decision of disallowance.

The ordinance, which was approved on Dec. 7, 2000, conferred the EPSA on Manila mayors, vice mayors and councilors who have been elected for three consecutive terms in the same position. The EPSA carries with it retirement and gratuity pay remuneration equivalent to the actual time served in the position for three consecutive terms.

The SC explained that the prohibition against additional or double compensation rests on the fundamental principle that a public office is a public trust and that the “temptation to further personal ends, public employment as a means for the acquisition of wealth, is to be resisted.”

On the other hand, the Supreme Court did not require a refund of the disallowed amount as “all the parties acted in good faith.”