MEMORANDUM Section 26 pd1445
MEMORANDUM Section 26 pd1445
MEMORANDUM Section 26 pd1445
Anent to your request for legal opinion as to whether the NHA may enter into
compromise agreement or not. The NHA may enter into compromise agreement
but subject to the COA rules specifically provided in Section 26 of PD 1445.
Under this section, the authority and powers of the COA shall extend to and
comprehends all matters relating to the following:
Under COA Memorandum No. 2002-053 dated August 26, 2002, requests for
adjudication of money claims of all sorts under existing laws shall be filed with the
Legal and Adjudication Office – National, Corporate or Local Sectors, as the case
may be, for their appropriate action. Cases involving money claim against the
Government cognizable by the Commission Proper may be filed directly with the
Commission Secretary. (Rule VIII, Sec. 1, 1997 COA Revised Rules of Procedure)
Also, a claim filed by a claimant with the auditor of a government-owned or
controlled corporation or self-governing boards or agencies of the Government is
a claim filed with the COA. (Puyat & Sons, Inc. v. Auditor General, 30 SCRA 22)
“In order to prevent possible circumvention of the rules and procedures of the
Commission on Audit, judges are hereby enjoined to observe utmost caution,
prudence and judiciousness in the issuance of writs of execution to satisfy money
judgments against government agencies and local government units.
The universal rule that where the State gives its consent to be sued by private parties
either by general or special law, it may limit claimant’s action ‘only up to the
completion of proceedings anterior to the stage of execution’ and that the power of
the Courts ends when the judgment is rendered, since government funds and
properties may not be seized under writs of execution or garnishment to satisfy such
judgments, is based on obvious considerations of public policy. Disbursements of
public funds must be covered by the corresponding appropriation as required by law.
The functions and public services rendered by the State cannot be allowed to be
paralyzed or disrupted by the diversion of public funds from their legitimate and
specific objects, as appropriated by law.
1.Properties held for public uses – and generally everything held for governmental
purposes – are not subject to levy and sale under execution against such
corporation. The same rule applies to funds in the hands of a public officer and
taxes due to a municipal corporation.
2.Where a municipal corporation owns in its proprietary capacity, as
distinguished from its public or governmental capacity, property not used or used
for a public purpose but for quasi private purposes, it is the general rule that such
property may be seized and sold under execution against the corporation.
3.Property held for public purposes is not subject to execution merely because it is
temporarily used for private purposes. If the public use is wholly abandoned, such
property becomes subject to execution.”
Under a Resolution of the Commission Proper dated September 17, 1979, COA
Regional Directors have been authorized to approve claims for the acquisition
cost/purchase price of lots affected by the IBRD Package Projects, and under COA
Memorandum No. 80-239 dated July 17, 1980, the same Regional Directors have
likewise been authorized to process and approve road right-of-way claims
involving amounts below P100,000.00 in each case. Similarly, under COA
Resolution No. 79-5 of the Commission Proper, the Auditor of the Ministry of
Public Works has been empowered to pass upon and approve vouchers covering
payments for properties situated within the site of, and affected by, the National
Government Center Project in Quezon City. And under certain issuances of this
Commission (1stIndorsement, dated September 12, 1978, et seq.), the Auditor of
the National Power Corporation has been authorized to pass upon and approve
vouchers covering payment for damaged improvements up to certain amounts.