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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 249 -
IMPOSING THE PENALTY OF SUSPENSION OF NINE (9) MONTHS WITHOUT PAY ON
EXECUTIVE DIRECTOR ELSA BAYANI AND DEPUTY EXECUTIVE DIRECTOR ASUNCION
MACALALAG OF THE NATIONAL NUTRITION COUNCIL (NNC)
This is an administrative case filed by
Engelbert R. Kho Yute, Accountant III, against Executive Director Elsa
Bayani, Deputy Executive Director Asuncion Macalalag and Finance
Management Officer II Angelito G. Ramos, all of the National Nutrition
Council (NNC), for various offenses involving the use and management of
funds of the NNC.
In its Resolution, The Presidential Commission Against Graft and
Corruption (Commission) found the following:
"On Charge No. 1: — Misuse and/or illegal use of public funds for the
salaries, etc. of contractual employees.
Complainant's actual charge is diversion of funds. The respondents
could not show any evidence purporting to be the approval by the
Department of Budget and Management of the diversion. The 1st
indorsement dated February 15, 1990 for the Civil Service Commission
finding the need to hire contractual employees subject to the
availability of funds and related COA auditing rules, did not include
the required DBM approval for re-alignment of funds for personal
services. (italics supplied)
On Charge No. 2: — On the alleged illegal and/or unlawful
deposit/disbursement of UNICEF donated funds —
The bone of contention on this issue is whether the funds called by the
complainant as "donations" are "trust receipts" as claimed by the
respondents.
It is clear that the General Appropriation Act of 1989, 1990 and 1991
invariably refer to the funds as trust receipts. The apparent objection
of complainant is on the deposit of a portion of said funds with a
depository bank, the PNB, claiming that the entire fund should have
been deposited with the National Treasury. The General Appropriation
Act provides that the receipts shall be deposited in an authorized
government depository bank or in the National Treasury (Sec. 4 thereof
earlier quoted).
Complainant, in an attempt to bolster his contention that this is not
so, submitted in evidence a COA Circular (82-188), dated June 15, 1982.
A perusal of said Circular, however, shows that the subject is
"guidelines" in the countersigning of checks/warrants issued to
withdraw from trust receipts deposited with authorized government
depository banks or the National Treasury". The aforequoted subject of
the Circular is by itself evidence that the National Treasury is not
the lone depository as it allows deposit with authorized government
depository banks.
If only to put this issue at rest, respondent submitted a letter dated
September 6, 1989 of then Secretary of Agriculture Carlos G. Dominguez
addressed to the PNB Branch FTI, Taguig, Metro Manila, requesting the
latter for the opening of a Combo Account under the account title
"NNC/UNICEF URBAN LAKASS (Lalakas ang Katawang Sapat sa Sustansiya)".
Assuming arguendo that the act is offensive to the circular/guidelines
pointed to by complainant, the herein respondents would be blameless
because the responsibility would rest squarely on the shoulders of then
Secretary of Agriculture Dominguez.
Charge No. 3: — Payments in advance to certain contractors.
Complainant's evidence consists of contracts entered into between NNC
and various contractors wherein said contract stipulate several
payments. The contract with Psycom Resource Planners, Inc. reveals
that, indeed' there was advance payment, i.e., 15% (P187,500) upon
singing of contracts 35% (P437,500) upon submission of June 1989
(Certificate of Performance (CP), 25% (P312,500) upon submission of
July 1989 CP. The Commission notes that this is violative of Sec. 88 of
P.D. No. 1445 which provides as follows:
Sec. 88.
Charge No. 4: — Payment of Expenses which do not promote public welfare
—
The amounts involved were insignificant that the respondent's
explanation that they were tokens of the agency's appreciation to
Secretary Dominguez for his substantial contribution to the NNC's
cause, is well-taken.
Charge No. 5: — Entering into contracts without the Certificate of
Availability of Funds: — The Commission notes that the of respondents
could produce only three (3) Requests for Allocation Allotment (EDCOM
Construction, Marcial Narvaez and Las Brisas Hotel) and could not
submit evidence for the other contracted firms (Kiangan Youth Hotel,
Villa Pansol Hot Spring, Mafrida Uy). (emphasis supplied)
Charge No. 6: — Misuse/misappropriation of P33,230.00 of NAFC trust to
pay for board and lodging of Mrs. Elsa Bayani.
The Commission also notes that the respondents did not meet the issue
squarely in this charge. Their averment that the seminar in question
was in connection with the LAKASS program is insufficient explanation.
(italics supplied)
Charge No. 7: — Entering into contract with 39 state
colleges/universities —
The pertinent rule (Sec. 64 P.D. 1177) indicates that there are certain
requisites for contracting the services outside the NNC, and these are:
a.
b.
c.
The respondents proved that the above requisites were met. Moreover,
the Workshop, which was related to the LAKASS program was conducted on
a nationwide basis involving 14 regional centers. Contracting with the
state colleges/universities was not only justified by cost-saving.
Charge No. 8: — Splitting of Vouchers: —
The Commission is convinced that there was no splitting if vouchers
involved.
Charge No. 9: — Entering into negotiated contracts without public
bidding. —
The contract that conspicuously involved in this charge is that entered
into with Psycom Planners, Inc. (consideration: P1.250 million) where,
indeed, no public bidding was done. But this is a negotiated contract
where the Secretary can enter into as allowed by Sec. 2 of Executive
Order No. 301, s. of 1987. The contract in question was signed by then
Secretary Dominguez.
xxx
Of the nine (9) charges, complainant could prove only Charges 1 and 3
as above-indicated. However, in Charge 3, it appears that the contract
was signed and executed by then Secretary Carlos Dominguez. In both
cases, the government did not actually suffer any loss."
After a careful review of the evidence on record this Office finds that
respondents committed the following administrative offenses:
a.
b.
c.
workshop. The Commission finds that respondents failed to meet the
issue squarely and noted that the explanations they advanced were
insufficient.
Regarding the advance payment made to certain contractors on Charge 3,
the same were in violation of Sec. 88, P.D. No. 1445. However, it
appears that the contract was signed and executed not by respondents
but by then Secretary Carlos Dominguez.
The fact that the government did not suffer any loss from the
infractions committed by respondents, as found by the Commission, is of
no moment. Respondents committed acts constituting incompetence and
inefficiency in the performance of official duties and conduct grossly
prejudicial to the best interest of the service punishable under the
provisions of the Omnibus Rules Implementing Book V of E.O. No. 292.
IN VIEW OF THE FOREGOING, this Office hereby adopts the findings of the
Presidential Commission Against Graft and Corruption. Respondents
Executive Director Elsa Bayani and Deputy Executive Director Asuncion
Macalalag are each SUSPENDED FOR NINE (9) MONTHS WITHOUT PAY.
DONE in the City of Manila.,
this 2nd day of February, in the year of Our Lord, nineteen hundred and
ninety-six.
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