THE Commission on Audit (COA) has ordered the Commission on Higher Education (CHED) to pay the P2 million claim of the University of Cebu Inc. (UCI) representing the final tranche for its completion of the 2016 project titled, “Marine Spatial Planning of Aquaculture Facilities in the Philippines: Protecting Biodiversity Whilst Maximizing Economic Returns for Local Communities.”
In its eight-page decision released only last week, the COA en banc granted the state university’s petition filed on July 7, 2021 asking for the release of the last tranche since it has completed and delivered the project it was contracted to undertake.
In its answer to UCI’s petition, the CHED interposed no objection saying the UCI complied with all the requirements of the memorandum of agreement and incurred expenses doing it.
It likewise acknowledged the obligation totaling P2 million but objected to the claim of interest citing jurisprudence in Taisei Shimizu Joint Ventures vs. Commission on Audit where the Supreme Court upheld the COA stand that payment of interest incurred due to the negligence of government officers should not be allowed.
In its memorandum dated January 17, 2022, the audit team leader for CHED stated that the contract between the CHED and UCI was valid and that only the first and second tranches were paid.
The COA en banc held that the CHED must pay the obligation even if only the first and second tranches were covered by certificates of availability of fund (CAF) because the third tranche had a different funding source.
“Considering that UCI rendered services and completed the project and the government has benefitted from such services, CHED must pay UCI the third tranche of the project. Hence, this Commission rules to grant the claim in the amount of P2,000,000. The claim for legal interest is denied for lack of legal basis,” it declared.
It noted that there was no express stipulation in the MOA that specifically covered the payment of interest, hence the claim of the university has no basis.
