G.R.
No. 199439 April 22, 2014
CITY
OF GENERAL SANTOS, represented by its Mayor, HON. DARLENE MAGNOLIA R.
ANTONINO-CUSTODIO Petitioner,
vs.
COMMISSION ON AUDIT, Respondent.
vs.
COMMISSION ON AUDIT, Respondent.
LEONEN, J.:
NATURE:
This
is a special civil action for certiorari
filed by the city of General Santos asking to find grave abuse of
discretion on the part of the Commission on Audit (COA).which affirmed the
findings of its Legal Services Sector in its Opinion No. 2010-021 declaring
Ordinance No. 08, series of 2009, as illegal.
FACTS:
Ordinance
No. 08, series of 2009, was passed together with its implementing rules and
regulations, designed "to entice those employees who were unproductive due
to health reasons to avail of the incentives being offered therein by way of
early retirement package."6
This
contextual background in the passing of Ordinance No. 08, series of 2009, was
not contested by respondent Commission on Audit.
In response to the endorsement of the city audit team leader, respondent Commission’s regional director agreed that the
grant lacked legal basis and was contrary to the Government Service Insurance
System (GSIS) Act. He forwarded the matter to respondent Commission’s Office of
General Counsel, Legal Services Sector.
The
Office of General Counsel issued COA-LSS Opinion No. 2010-021. Respondent
Commission on Audit observed that GenSan SERVES was not based on a law passed
by Congress but on ordinances and resolutions passed and approved by the
Sangguniang Panlungsod and Executive Orders by the city mayor.26 Moreover,
nowhere in Section 76 of Republic Act No. 7160, otherwise known as the Local
Government Code, does it provide a specific power for local government units to
establish an early retirement program.
ISSUE:
WHETHER
RESPONDENT COMMISSION ON AUDIT COMMITTED GRAVE ABUSE OF DISCRETION WHEN IT
CONSIDERED ORDINANCE NO. 08, SERIES OF 2009, IN THE NATURE OF AN EARLY
RETIREMENT PROGRAM REQUIRING A LAW AUTHORIZING IT FOR ITS VALIDITY
HELD:
The
Court agree with respondent Commission on Audit but only insofar as the
invalidity of Section 5 of the ordinance is concerned.
Section
5. GenSan SERVES Program Incentives On Top of Government Service Insurance
System (GSIS) and PAG-IBIG Benefits – Any personnel qualified and approved to
receive the incentives of this program shall be entitled to whatever retirement
benefits the GSIS or PAG-IBIG is granting to a retiring government employee.
Moreover,
an eligible employee shall receive an early retirement incentive provided under
this program at the rate of one and one-half (1 1/2) months of the employee’s
latest basic salary for every year of service in the City Government.9
Section
5 refers to an "early retirement incentive," the amount of which is
pegged on the beneficiary’s years of service in the city government. The
ordinance provides that only those who have rendered service to the city
government for at least 15 years may apply.75 Consequently,
this provision falls under the definition of a retirement benefit. Applying the
definition in Conte, it is a form of reward for an employee’s loyalty and
service to the city government, and it is intended to help the employee enjoy
the remaining years of his or her life by lessening his or her financial
worries.
Sec.
28 (b) as amended by RA 4968 in no uncertain terms bars the creation of any
insurance or retirement plan – other than the GSIS – for government officers
and employees, in order to prevent the undue and inequitous proliferation of
such plans. x x x. To ignore this and rule otherwise would be tantamount to
permitting every other government office or agency to put up its own
supplementary retirement benefit plan under the guise of such "financial
assistance.71
The
Court declares Section 6 on post-retirement incentives as valid.
FALLO:
WHEREFORE, the petition is PARTIALLY
GRANTED. The assailed Commission on Audit decision dated January 20, 2011 and
resolution dated October 17, 2011 are AFFIRMED with MODIFICATION insofar as
Section 6 of Ordinance No. 08, series of 2009, as amended by Ordinance No. 11,
series of 2009, is declared as VALID.
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