Sanchez vs. COA digest

Sanchez vs. COA

Facts: In 1991, Congress passed Republic Act No. 7180 (R.A. 7180) otherwise known as the General Appropriations Act of 1992. This law provided an appropriation for the DILG under Title XIII and set aside the amount of P75,000,000.00 for the DILG's Capability Building Program. On 11 November 1991, Atty. Hiram C. Mendoza (Atty. Mendoza), Project Director of the Ad Hoc Task Force for Inter-Agency Coordination to Implement Local Autonomy, informed then Deputy Executive Secretary Dionisio de la Serna of the proposal to constitute and implement a "shamrock" type task force to implement local autonomy institutionalized under the Local Government Code of 1991. The proposal was accepted by the Deputy Executive Secretary and attested by then DILG Secretary Cesar N. Sarino, one of the petitioners herein, who consequently issued a memorandum for the transfer and remittance to the Office of the President of the sum of P300,000.00 for the operational expenses of the task force. An additional cash advance of P300,000.00 was requested. Upon post-audit conducted by Department auditor Iluminada M.V. Fabroa, however, the amounts were disallowed.

Issue: What are two essential requisites in order that a transfer of appropriation may be allowed? Are those present in this case?

Ruling: Contrary to another submission in this case, the President, Chief Justice, Senate President, and 

the heads of constitutional commissions need not first prove and declare the existence of savings before transferring funds, the Court in Philconsa v. Enriquez, supra, categorically declared that the Senate President and the Speaker of the House of Representatives, as the case may be, shall approve the realignment (of savings). However, "[B]efore giving their stamp of approval, these two officials will have to see to it that: (1) The funds to be realigned or transferred are actually savings in the items of expenditures from which the same are to be taken; and (2) The transfer or realignment is for the purpose of augmenting the items of expenditure to which said transfer or realignment is to be made.”

The absence of any item to be augmented starkly projects the illegality of the diversion of the funds and the profligate spending thereof.

With the foregoing considerations, it is clear that no valid transfer of the Fund to the Office of the President could have occurred in this case as there was neither allegation nor proof that the amount transferred was savings or that the transfer was for the purpose of augmenting the item to which the transfer was made.

Further, we find that the use of the transferred funds was not in accordance with the purposes laid down by the Special Provisions of R.A. 7180.