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    NEA vs. COA

    Uploaded by

    Arlen Rojas
    The Supreme Court ruled: 1) The President has authority to issue executive orders like EO 389 to implement salary increases as granted by law. 2) NEA did not have authority to accelerate the salary increases on its own. Appropriations for salary adjustments are subject to the President's approval according to the Government Appropriations Act and relevant budget circulars. NEA's early implementation was not in accordance

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    © All Rights Reserved
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    NEA vs. COA

    Uploaded by

    Arlen Rojas
    134 views2 pages
    The Supreme Court ruled: 1) The President has authority to issue executive orders like EO 389 to implement salary increases as granted by law. 2) NEA did not have authority to accelerate the salary increases on its own. Appropriations for salary adjustments are subject to the President's approval according to the Government Appropriations Act and relevant budget circulars. NEA's early implementation was not in accordance

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    Original Title

    230. NEA vs. COA

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    The Supreme Court ruled: 1) The President has authority to issue executive orders like EO 389 to implement salary increases as granted by law. 2) NEA did not have authority to accelerate the salary increases on its own. Appropriations for salary adjustments are subject to the President's approval according to the Government Appropriations Act and relevant budget circulars. NEA's early implementation was not in accordance

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    134 views2 pages

    NEA vs. COA

    Uploaded by

    Arlen Rojas
    The Supreme Court ruled: 1) The President has authority to issue executive orders like EO 389 to implement salary increases as granted by law. 2) NEA did not have authority to accelerate the salary increases on its own. Appropriations for salary adjustments are subject to the President's approval according to the Government Appropriations Act and relevant budget circulars. NEA's early implementation was not in accordance

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Case No.

    230

    NATIONAL ELECTRIFICATION ADMINISTRATION, petitioner,

    vs.

    COMMISSION ON AUDIT, respondent.

    G. R. No. 143481. February 15, 2002

    FACTS:

    Republic Act No. 6758 (RA 6758), entitled An Act Prescribing A Revised Compensation and Position Classification System in the
    Government and For Other Purposes, took effect. Because of the pressing economic difficulties and the need to alleviate the plight
    of government personnel, the Senate and the House of Representatives passed a Joint Resolution to revise existing compensation
    and position classification system in the Government to be initially effective in January 1, 1994 and the new salary schedule shall be
    implemented within 4 years beginning in 1994. President Fidel V. Ramos approved the resolution and on 1996 issued EO 389 that
    directs the payment of the increase in two tranches. However, NEA accelerated the implementation of the salary increase by paying
    the second tranche starting January 1, 1997 instead of November 1, 1997. Commissions resident auditor in NEA issued a Notice of
    Suspension requiring the submission of the legal basis for the full implementation of the new salary schedule effective January 1,
    1997 instead of November 1, 1997. The NEA failed to sub mit the basis for its advance implementation of the prescribed salary rates.
    Commissions resident auditor then issued Notices of Disallowance, which was sustained by Corporate Audit Office II and
    Commission en banc upon NEA’s request to reconsider the disallowance to them. Resulting in NEA’s petition for certiorari with
    prayer for preliminary injunction and temporary restraining order, to reverse and set aside Decision of the Commission on Audit.

    ISSUE:

    1. WON the President has authority to issue E O 389

    2. WON NEA may accelerate the implementation of the salary increases for the year 1997 due to the availability of funds.

    RULINGS:

    1. The Administrative Code has unequivocally vested the President with rule-making powers in the form of executive orders,
    administrative orders, proclamations, memorandum orders and circulars and general or special orders. Joint Resolution No. 01
    expressly acknowledges the authority of the President to revise the existing compensation and position classification under the
    standards and guidelines provided by said Resolution. While Congress is vested with the power to enact laws, the President
    executes the laws. The executive power is vested in the President. It is generally defined as the power to enforce and
    administer the laws. It is the power of carrying (out) the laws into practical operation and enforcing their due observance. EO
    389 has been issued on authority and within the confines of the law.

    2. NEAs accelerated implementation of the Salary Standardization Law II is not in accordance with law. Under our system of
    government all executive departments, bureaus and offices are under the control of the President of the Philippines.
    Presidential power of control over the executive branch of government extends to all executive employees from Cabinet
    Secretary to the lowliest clerk. Executive officials who are subordinate to the President should not trifle with the Presidents
    constitutional power of control over the executive branch. There is only one Chief Executive who directs and controls the
    entire executive branch, and all other executive officials must implement in good faith his directives and orders. This is
    necessary to provide order, efficiency and coherence in carrying out the plans, policies and programs of the executive branch.
    1997 GAA is not self-executory so as to serve as outright legal authority for NEA to spend what had been appropriated for

    NEAs Personal Services under the 1997 GAA. The Budget Secretary must first prepare an itemization of the Personal Services,
    and submit the same for approval of the President. Next, the Budget Secretary must recommend to the President NEAs
    program of expenditure for the current year based on NEAs authorized appropriation. The President may approve the
    expenditure program subject to certain policies and rules. The salary adjustments as well as the associated benefits granted by
    the Salary Standardization Law II are, under the 1997 GAA, expressly subject to the Presidents approval. Appropriations for
    salary increases or adjustments shall be released as specifically authorized by law or appropriate budget circular, which in this
    case is National Budget Circular No. 458.

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