De Los Santos V COA

CONSTITUTIONAL LAW REVIEW | SUNGA
22 De los Santos v. COA, G.R. No.198457, August 13, 2013 b) an indigent patient who has been a beneficiary will
G.R. No. 198457 be subsequently disqualified from seeking further
August 13, 2013 medical assistance; and
c) the hospital shall purchase medicines intended for
BY: Ramos, P the indigent patients from outside sources if the
TOPIC: Judicial Branch same are not available in its pharmacy, subject to
reimbursement when such expenses are supported
A MOA was entered into between Congressman Cuenca and by official receipts and other documents.
VSMMC, the former appropriated to the latter a part of his PDAF to  In line with this, Ma. Isabel Cuenco, Project Director of the
cover the medical assistance of indigent patients under the TNT TNT Program, wrote petitioner Nelanie Anotoni Pharmacist V
Health Program. Through the course of the implementation of the of VSMMC, requesting the latter to purchase needed
project allegation of irregularities rose. Three audits were made (the medicines not available at the hospital pharmacy.
hospital, the CoA, and a Special Audit Team). The Petitioners (Delos  Several years after the enforcement of the MOA, allegations
Santos, Bacaltos, Antoni and Bien) were held liable, which the CoA of forgery and falsification of prescription and referrals for the
affirmed. The SC found no grave abuse of discretion on the part of availment of medicines under the TNT Program surface.
the CoA. It is the general policy of the Court to sustain the decisions Petitioner Filomena G. Delos Santos, who succeeded Dr.
of administrative authorities, they are presumed expertise in the laws Alquizalas, created a fact-finding committee to investigate
they are entrusted to enforce. the matter.
 Beatriz M. Booc, State Auditor IV, who was assigned to audit
FACTS: the hospital, came up with her own review of the account for
 Sometime in October 2001, then Congressman Antonio V. drugs and medicines charged to the PDAF of Cuenco. She
Cuenco entered into a Memorandum of Agreement with the recommended the investigation of the following irregularities:
Vicente Sotto Memorial Medical Center(VSMMC), a) Those involving of fictitious patients and falsified
represented by Dr. Eusebio M. Alquizalas, Medical Center prescriptions for anti-rabies and drugs
Chief, appropriating to the hospital the amount of Php 1.5M b) Those involving issuance of vitamins worth
from his Priority Development Assistance Fund(PDAF) to P138,964.80 mostly to the staff of VSMMC and TNT
cover the medical assistance of indigent patients under the Office covering the period of Jan to April 2004; and
Tony N’ Tommy (TNT) Health Program (TNT Program) c) Those covering fictitious patients and falsified
 It was agreed that: prescription for other drugs and medicines, and
a) Cuenco shall identify and recommend the indigent unpaid falsified prescriptions and referral letters for
patients who may avail of the benefits of the TNT drugs and medicines
Program for an amount not exceeding P5,000.00 per  The fact-finding committee created by Delos Santos
patient, except those with major illnesses for whom a submitted its Report essentially affirming the “unseen and
separate limit may be specified; unnoticeable” irregularities attendant to the availment of the
TNT Program but pointing out, however that:
a) VSMMC was made an “unwilling tool to perpetuate a

scandal involving government funds,” ISSUE:
b) The VSMMC management was completely “blinded” Whether or not CoA committed grave abuse of discretion in holding
as its participation involved merely “a routinary petitioners solidarily liable for the disallowed amount of
ministerial duty” in issuing the checks upon receipt of P3,386,697.10?
the referral slips, prescriptions, and delivery receipts
that appeared on their faces to be ragular and HELD:
complete; and No. CoA is endowed with enough latitude to determine, prevent, and
c) The detection of the falsification and forgeries “could disallow irregular, unnecessary, excessive, extravagant or
not be attained even in the exercise of the highest unconscionable expenditures of government funds. It is tasked to be
degree or form of diligence” as the VSMMC vigilant and conscientious in safeguarding the proper use of the
personnel were not handwriting experts. government’s, and ultimately the people’s property. The exercise of
 Delos Santos explained that during the initial stage of the its general audit power is among the constitutional mechanisms that
implementation of the MOA the hospital screened, gives life to the check and balance system inherent in our form of
interviewed, and determined the qualifications of the government.
patients-beneficiaries through the hospital’s social worker.
 However, sometime in 2002, Cuenco put up the TNT Office Corollary thereto, it is the general policy of the Court to sustain the
in VSMMC, which was run by his own staff who took all pro decisions of administrative authorities, especially one which is
forma referral slips bearing the names of the social worker constitutionally-created, such as the CoA, not only on the basis of
and the Medical Center Chief, as well as the logbook. (the the doctrine of separation of powers but also for their presumed
hospital was relegated to a mere “bag keeper”. expertise in the laws they are entrusted to enforce. Findings of
 Consequently, a special audit team (SAT) was formed; administrative agencies are accorded not only respect but also
Examination by the SAT of the records and interviews with finality when the decision and order are not tainted with unfairness or
the personnel involved showed that the purported patients- arbitrariness that would amount to grave abuse of discretion. It is
beneficiaries of the TNT Program were mostly non-existent only when the CoA has acted without or in excess of jurisdiction, or
and there was no actual procedure followed except for the with grave abuse of discretion amounting to lack or excess of
mere preparation of payment documents which were found jurisdiction, that this Court entertains a petition questioning its
to be falsified. rulings. There is grave abuse of discretion when there is an evasion
 SAT Team Supervisor disallowed the amount of of a positive duty or a virtual refusal to perform a duty enjoined by
P3,386,697.10 for the payment of drugs and medicines for law or to act in contemplation of law as when the judgement
anti-rabies with falsified prescription and documents, and rendered is not based on law and evidence but on caprice, whim,
holding petitioners, together with other VSMMC officials, and despotism. In this case, the Court finds no grave abuse of
solidarily liable. discretion on the part of the CoA.
 Petitioners appealed to the CoA but CoA affirmed the
findings.
The CoA correctly pointed out that VSMMC, through its official,
should have been deeply involved in the implementation of the TNT
program as the hospital is a party to the MOA and, as such, has
acted as custodian and disbursing agency of Cuenco’s PDAF.
Jurisprudence holds that, absent any showing of bad faith and

malice, there is no presumption of regularity in the performance of
official duties. However, this presumption must fail in the presence of
an explicit rule that was violated.

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CONSTITUTIONAL LAW REVIEW | SUNGA

a) VSMMC was made an “unwilling tool to perpetuate a

Jurisprudence holds that, absent any showing of bad faith and

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