IS a public official allowed to seek reimbursement for money spent defending himself against corruption charges?
The Commission on Audit says reimbursement of legal expenses is allowable if the case arose from the performance of official functions and only limited to court-related expenses, including attorney’s fees.
In a decision, the COA Commission Proper partially granted the petition of Carmelito Soriano, head of the Power System Maintenance Department for the National Transmission Corp (Transco)-North Mindanao, to refund the sum he spent fighting off a graft case filed against him by the Office of the Ombudsman in 2014.
In the case, Soriano was named co-defendant of two Transco-NM vice presidents in connection with the alleged questionable procurement of 24 current transformers worth P8.37 million in 2005.
However, the Sandiganbayan First Division issued a decision dated November 10, 2016 acquitting all three of any criminal liability, noting the procurement was valid after having gone through regular processes.
In his petition for money claim, Soriano said he spent P723,300, including P495,300 paid to his legal counsel and P228,000 spent on plane fare and accommodations for himself and his lawyer, in attending the court hearings at the Sandiganbayan.
While the Transco’s Committee on Reimbursement of Legal Expenses (ROLE) approved the lawyer’s fees, it denied refund of travel expenses citing prohibition under Transco Circular No. 2008-0011.
Likewise, it clarified that the release of funds for the reimbursement is subject to the conformity of the Commission on Audit which has the authority to review settlement of all debts and claims due from or owed to the government.
The COA upheld Transco’s stand that only legal expenses covering “direct, necessary, and incidental court-related expenses” incurred by Transco or its employees including the professional fee of the legal counsel may be allowed while denying reimbursement of the travel expenses.
“(T)his Commission finds the claim of travel expenses in the amount of P228,000.00 unmeritorious. Item 6.1 of the TRANSCO Circular …is clear that expenses incurred for the employee-applicant’s meals, transportation, board and lodging are considered personal expenses and are excluded from the coverage of the legal expenses,” the commission declared.
