Jul 23, 2017 @ 14:31

The Supreme Court has dismissed the petition of the Monetary Board, the policy-making physique of Bangko Sentral ng Pilipinas, looking for to permit the extraordinary and miscellaneous bills (EME) for its ex-officio members.

In a 10-page ruling penned by Associate Justice Noel Tijam dated June 6, 2017 however obtained by the media not too long ago, the excessive court docket upheld the notices of disallowance issued by the Commission on Audit (COA) issued in August 2010 and affirmed in August 2014 on EMEs obtained by MB member Peter Favila and former member Romulo Neri from 2007 to 2009.

The SC dismissed the allegations of the MB board that the COA dedicated grave abuse of discretion and violated their constitutional proper underneath the equal safety clause. The court docket as a substitute upheld the ruling of the fee that ex-officio members of the MB “shall not be entitled to additional EMEs, other than that appropriate for him or her under the GAA as a cabinet member.”

“In the absence of grave abuse of discretion, the factual findings of the COA, that are undoubtedly supported by the proof on file, have to be accorded nice respect and finality. COA, as a duly approved company to adjudicate cash claims towards authorities businesses and instrumentalities has acquired particular information and experience in
dealing with issues falling underneath its specialised jurisdiction,” learn the choice.

The petition was filed by the seven-member MB underneath its former chair and BSP Governor Amando Tetangco Jr., who retired from his posts earlier this month and was changed by Nestor Espenilla Jr.

Apart from Espenilla and Favila, the opposite present members of the MB are former Philippine Deposit Insurance Corp. president Valentin Araneta, former socioeconomic planning secretary Felipe Medalla, former BSP assistant governor and common counsel Juan de Zuñiga Jr., former Metrobank president Antonio Abacan Jr. and Finance Secretary Carlos Dominguez III.

The SC ruling additionally held MB officers who accepted the EMEs liable underneath Republic Act No. 8791 (General Banking Law), which requires “highest standards of integrity and performance.”

The Court additionally rejected the protection of presumption of excellent religion by the MB members in approving the EME.

It cited General Appropriations Acts that restrict the grant of EMEs, the September 1997 memorandum of COA for enforcement of Section 13, Article VII of the Constitution that prohibits double compensation in authorities service, and the irregularity of extra compensation to ex-officio members of our bodies.

“Indeed, the petitioners-approving officers’ disregard of the aforementioned case laws, COA issuances, and the Constitution cannot be deemed as a mere lapse consistent with the presumption of good faith,” learn the ruling.

The SC additionally particularly pointed to the legal responsibility of Favila, who argued that the COA ruling turned last solely in 2014 and may due to this fact not cowl the EMEs he obtained in 2007 and 2008 when he was concurrent MB member and commerce and trade secretary.

“His liability arose from his receipt of the subject allowances in 2008, when he was ex-officio member of the Board. Hence, good faith did not favor him only because he had failed to exercise the highest degree of responsibility, but also because as a cabinet member he was aware of the extent of the benefits he was entitled to,” it harassed.

Favila has returned to the MB after he was appointed a member of the board by President Duterte final month. (Christopher Lloyd T. Caliwan/Philippine News Agency)

Source: politics.com.ph