Source: http://lawlibrary.chanrobles.com/index.php?option=com_content&view=article&id=83933:58689&catid=1590&Itemid=566
Timestamp: 2019-04-19 22:44:36+00:00

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BASES CONVERSION AND DEVELOPMENT AUTHORITY (BCDA), Petitioner, v. COMMISSION ON AUDIT CHAIRPERSON MA. GRACIA M. PULIDO-TAN, COMMISSIONER HEIDI L. MENDOZA AND COMMISSIONER ROWENA V. GUANZON, THE COMMISSIONERS, COMMISSION ON AUDIT, Respondents.
Given the circumstances, the BCDA Audit Team Leader, State Auditor Corazon Españo, issued on March 11, 2003 Audit Observation Memorandum No. 03-00817 providing the disallowance of P117,760.00. This was affirmed by the COA’s Legal and Adjudication Office-Corporate via its Notice of Disallowance No. BCDA-05-001-(02)18 dated April 12, 2005. BCDA moved to reconsider, but its plea was denied.19 Unyielding, BCDA appealed to the COA Adjudication and Settlement Board (ASB).
The petition is bereft of merit. The Court finds no grave abuse of discretion on the part of the COA in issuing the assailed decision.
The Court highlights the fact that the project was originally slated to be completed within seven months. Under the main CMS contract, DSI’s service as construction manager was to coincide with this period. Per its original plan, DSI intended to retain the five subject personnel’s services only until the end of the project’s construction phase in month five. They were then no longer needed during the project’s post-construction phase.
BCDA’s argument that the disallowed five man-months were not part of the original scope of works fails to persuade. It offered no clear and sufficient explanation as to how and why the five members of the CMS team needed to extend working for two more months than originally intended, when the project itself was extended for only a month. Given such failure, the Court finds no cogent reason to disturb the COA’s finding that the services of the five personnel were not needed for the extra one month. Considering that BCDA and DSI’s supplemental agreement only provided for a one-month project extension, there was in truth no basis, factual or legal, for the disallowed amounts.
c. Additional costs that may be incurred due to reasonable delays (greater than 15% of approved contract duration) in project implementation due to acts undeniably attributable to government and/or force majeure as determined by the Head of agency.
DSI’s case did not fall under any of these exceptions under the NEDA-IRR and the main CMS agreement that could justify an increase in remuneration. The original contract between BCDA and DSI clearly limited the services that may be allowed via a supplemental agreement to be signed by the parties. The Court reiterates the BCDA’s failure to sufficiently establish that the subject five man-month extensions were not yet covered by the original scope of work. It was also not adequately explained why the services of the five employees became necessary during the post construction phase when under the original manning schedule, they were to serve only until the termination of the project’s construction phase.
Sereno, (Chief Justice), on official leave.
Carpio, Velasco, Jr., Leonardo-De Castro, Peralta, Bersamin, Del Castillo, Villarama, Jr., Perez, Mendoza, Perlas-Bernabe, and Leonen, JJ., concur.
2 Issued by Commission on Audit Chairperson Ma. Gracia M. Pulido Tan and Commissioners Heidi L. Mendoza and Rowena V. Guanzon; id. at 24-29.
26Malayang Manggagawa ng Stayfast Phils., Inc. v. National Labor Relations Commission, G.R. No. 155306, August 28, 2013, 704 SCRA 24, 38; Dycoco v. Court of Appeals, G.R. No. 147257, July 31, 2013, 702 SCRA 566, 580; Balayan v. Acorda, 523 Phil. 305, 309 (2006).
27Malayang Manggagawa ng Stayfast Phils., Inc. v. National Labor Relations Commission, id. at 39, citing Yu v. Judge Reyes-Carpio, G.R. No. 189207, June 15, 2011, 652 SCRA 341, 348.
33 G.R. No. 193677, September 6, 2011, 656 SCRA 767.

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