April 12, 2013

COA DECISION NO. 2013-066

SUBJECT : Motion of Engr. Gilbert C. Olfindo, Former District Engineer, Department of Public
Works and Highways (DPWH) Camarines Sur 2nd Engineering District, Baras,
Canaman, Camarines Sur, for Reconsideration of COA Decision No. 2010-066 Dated
June 16, 2010, Which Affirmed COA Legal and Adjudication Office-National (LAO-N)
Decision No. 2004-433 Dated December 20, 2004, Upholding the Disallowances
Relative to the Payments of the Service Vehicle Rentals Amounting to P894,178.68

RESOLUTION

FACTS OF THE CASE

Before this Commission is the motion of Engr. Gilbert C. Olfindo, former District Engineer, DPWH
Camarines Sur 2nd Engineering District, Baras, Canaman, Camarines Sur, for reconsideration of COA
Decision No. 2010-066 dated June 16, 2010. The said Decision affirmed COA LAO-N Decision No. 2004-
433 dated December 20, 2004 which upheld various disallowances on the payments made by the DPWH
Camarines Sur 2nd Engineering District, for the lease of service vehicles used in the inspection of
projects in the district amounting to P894,178.68. The dispositive portion of COA Decision No. 2010-066
reads:
WHEREFORE, foregoing premises considered, ND Nos. 2002-02-001, 2002-07-002, 2002-08-
003 and 2002-09-004 dated 22 March 2002, 29 July 2002, 31 August 2002 and 2 September 2002,
respectively, in the total amount of P894,178.68 are hereby AFFIRMED. Accordingly, Engr. Gilbert
Olfindo is liable thereto for having certified that the expenses are necessary and lawful and for
having approved the payment/disbursement vouchers. In addition, Ms. Teresita Demabasa, who
certified in the payment/disbursement vouchers that funds were available for the payment of the
rentals, and Mr. Eleno U. Colinares, Jr., DPWH Regional Director, who approved the Contracts of
Leases shall likewise be liable solidarily with Engr. Olfindo for the disallowed payments. The Audit
Team Leader is directed to issue Supplemental Notice of Disallowance to Ms. Demabasa and Mr.
Colinares based on the herein decision.
In the assailed Decision, this Commission maintained that prior authority by the Department of
Budget and Management (DBM) Secretary is required for the use of savings from appropriations for
current operating expenditures or from the continuing appropriations, as in the instant case, to pay
rental of motor vehicles for a continuous period of more than 15 days pursuant to Section 76, Chapter 7,
Book VI of the Revised Administrative Code (RAC) on the Limitation of Rental of Motor Vehicles. The said
provision was the basis for the issuance of National Budget Circular (NBC) No. 446A dated January 30,
1998, which amended NBC No. 446, series of 1995. Likewise, the argument that the subject lease
contracts were entered into in accordance with DPWH Department Order (DO) No. 188 dated September
28, 1999 was not found meritorious. Thus, the subject lease contracts were void ab initio for the following
reasons:
1) There was lack of prior authority from the DBM for the use of savings pursuant to Section 76,
Chapter 7, Book VI of the RAC as implemented under NBC No. 446A, which amended NBC No.
446, series of 1995;
2) The Certificate of Availability of Funds (CAF) issued by the DPWH Accountant for the lease
payments pertained to the agency's savings, the use of which was not approved by the DBM;
and
3) The extended lease of vehicle beyond 15 days was without approval of the DPWH Secretary.
The approval of then DPWH Regional Director Colinares, Jr. for the subject vehicle lease was
not the approval required for the purpose pursuant to Section 10.1.8 of DPWH DO No. 188.
In the instant motion for reconsideration, movant Engr. Olfindo, through counsel, invoked the
following arguments:
1. DBM NBC No. 446 dated November 24, 1995, which is null and void for lack of the required
publication, should not be made the basis for disallowance;
2. Since the validity of NBC No. 446 is in dispute, the provision under Section 76, Book VI of
Executive Order (EO) No. 292, in effect, lacks the necessary guidelines for its enforceability
and complete implementation, which should not be made the basis for the disallowance;
3. Payments for the subject lease contracts were sourced from the "Retentions" from Capital
Outlay and not from the savings; and
4. DPWH DO No. 188 is the more controlling policy which provides the guidelines for equipment
leasing to the DPWH.
ISSUE
The issue to be resolved is whether or not the instant motion for reconsideration is impressed with
merit.
DISCUSSION
After a careful evaluation of the facts and circumstances obtaining, this Commission finds that the
arguments presented are mere rehash of those previously submitted which were already considered and
arguments presented are mere rehash of those previously submitted which were already considered and
passed upon in the assailed COA Decision.
RULING
WHEREFORE, there being no new and material evidence presented that would warrant its
reconsideration, COA Decision No. 2010-066 dated June 16, 2010 relative to the various disallowances
pertaining to the payments of service vehicle rentals in the total amount of P894,178.68 is AFFIRMED
with finality.

(SGD.) MA. GRACIA M. PULIDO TAN

Chairperson

(SGD.) HEIDI L. MENDOZA

Commissioner

Attested by:

(SGD.) FORTUNATA M. RUBICO

Director IV
Commission Secretariat
Copy furnished:
Engr. Gilbert C. Olfindo
DPWH 2nd Engineering District
Baras, Canaman, Camarines Sur
Director Eleno U. Colinares, Jr.
Regional Director
DPWH Region V, Legazpi City
Ms. Teresita B. Demabasa
Accountant
DPWH Region V, Legazpi City
The Audit Team Leader
DPWH Region V, Legazpi City
The Regional Director
COA Regional Office No. V
Legazpi City, Albay
The Director
Information Technology Office
Administration Sector
The Assistant Commissioners
National Government Sector
Legal Services Sector
All of this Commission
WHE/SUV//DHT/MLA
N-2145