[ G.R. No.

174788, April 11, 2013 ]

THE SPECIAL AUDIT TEA , C! ISSI!N !N AUDIT, PETITI!NERS, "S. C!URT !# APPEALS AND G!"ERN ENT SER"ICE INSURANCE S$STE , RESP!NDENTS. DECISI!N
SEREN!, C.%.& This is a Petition for Certiorari and Prohibition[1] filed on 10 November 2006, seeking to set aside two Resol tions of the Co rt of !""eals #C!$ of C!%&'R' (P No' )0*+*, dated ) ! g st 2006[2] and 2, (e"tember 200-,[,] res"e.tivel/, and to "rohibit the C! from "ro.eeding with C!%&'R' (P No' )0*+*' Res"ondent &overnment (ervi.e 0ns ran.e (/stem #&(0($ filed a Petition for Prohibition with the C! dated 1+ 1 l/ 200- against "etitioner ("e.ial ! dit Team #(!T$ of the Commission on ! dit #C2!$ with a "ra/er for the iss an.e of a tem"orar/ restraining order #TR2$, a writ of "reliminar/ "rohibitor/ in3 n.tion, and a writ of "rohibition'[*] ( bse4 entl/, &(0( also s bmitted a 5anifestation and 5otion dated 21 1 l/ 200- detailing the rgen./ of restraining the (!T'[-] The C! iss ed a Resol tion on 22 1 l/ 200-, dire.ting "etitioner (!T to s bmit the latter6s .omment, to be treated as an answer'[6] !dditionall/, the C! granted the "ra/er of &(0( for the iss an.e of a TR2 effe.tive si7t/ #60$ da/s from noti.e' !fter re4 iring the s bmission of memoranda, C! iss ed the assailed Resol tion dated 2, (e"tember 200- in C!%&'R' (P No' )0*+*, granting the "ra/er for the iss an.e of a writ of "reliminar/ in3 n.tion "on the "osting of an in3 n.tion bond'[8] The 2ffi.e of the (oli.itor &eneral #2(&$ filed a 5otion for Re.onsideration #5R$ and a Comment on the "etition dated 10 2.tober 200-, after it was notified of the .ase, as the (!T had been re"resented in the interim b/ one of the team members instead of the 2(&'[+] The 5R was denied thro gh a Resol tion of the C! on ) ! g st 2006'[)] The "resent Petition seeks to n llif/ both the 2, (e"tember 200- and the ) ! g st 2006 C! Resol tions and to "rohibit the C! from "ro.eeding to de.ide the .ase' ANTECEDENT #ACTS C2! .reated the (!T nder 9egal and !d3 di.ation 2ffi.e #9!2$ 2rder No' 200*%0),, whi.h was iss ed b/ C2! !ssistant Commissioner and &eneral Co nsel Ra4 el R' Ramire:%;abitan' Tasked to .ond .t a s"e.ial a dit of s"e.ifi. &(0( transa.tions, the (!T had the avowed " r"ose of .ond .ting a s"e.ial a dit of those transa.tions for the /ears 2000 to 200*'[10] !..ordingl/, the (!T immediatel/ initiated a .onferen.e with &(0( management and re4 ested .o"ies of "ertinent a ditable do. ments, whi.h the latter initiall/ agreed to f rnish'[11] ;owever, d e to the ob3e.tion of &(0( to the a.tions of (!T d ring the .onferen.e,[12] the re4 est went nheeded' This "rom"ted the latter to iss e a subpoena duces tecum'[1,]

0n res"onse to the subpoena, the &(0(, thro gh its President and &eneral 5anager <inston =' &ar.ia, re"lied that while it did re.ogni:e the a thorit/ of C2! to .onstit te a team to .ond .t a s"e.ial a dit, that team sho ld not be the (!T, whose members were biased, "artial, and hostile' [1*] The then%C2! Chair"erson & illermo N' Carag e denied the re4 est of &(0( on a..o nt of the restr .t ring of the .ommission nder C2! Resol tion 2002%00-, whi.h formed the basis for the (!T6s .reation'[1-] ;owever, thro gh a s bse4 ent letter of !tt/' Claro >' =lores and !tt/' Nelo >' &ella.o, the &(0( alleged that the (!T6s .reation was not s ""orted b/ C2! Resol tion 2002%00-, whi.h was witho t for.e and effe.t'[16] The reasoning of both law/ers was based on the theor/ that the 1)+8 Constit tion did not give C2! the "ower to reorgani:e itself'[18] !llegedl/, the .ommission onl/ had the "ower to define the s.o"e of its a dit and e7amination, as well as to "rom lgate r les .on.erning "leading and "ra.ti.e'[1+] ?ven if the C2! were allowed to reorgani:e itself, the &(0( .laimed that the subpoena re4 ired a .ase to have been bro ght to the .ommission for resol tion'[1)] Thereafter, several &(0( offi.ials sent C2! Chair"erson Carag e a letter em"hasi:ing that the s"e.ial a dit sho ld be .ond .ted b/ another team and detailing how the (!T, as then .onstit ted, "re3 dged the legalit/ of several ke/ "ro3e.ts of the &(0([20] while merel/ rel/ing on hearsa/ and ina""li.able legal standards'[21] 0n its Petition, the (!T .laimed that d e to the .ontin ed ref sal of &(0( to .oo"erate, the team was .onstrained to em"lo/ @alternative a dit "ro.ed resA b/ gathering do. ments from the 2ffi.e of the ! ditor of &(0(, the ;o se of Re"resentatives, and others'[22] 5eanwhile, some of the a dit observations made b/ the (!T a""eared in the news"a"er Manila Times,[2,] res lting in the ref sal of &(0( management to attend the (!T6s e7it .onferen.e'[2*] C!URT INTER"ENTI!N 2n 1- !"ril 200-, &(0( filed with the C2! itself a @PetitionBRe4 est to n llif/ ("e.ial ! dit Re"ort dated 2) 5ar.h 200- on sele.ted transa.tions of the &(0( for CC 2000 to 200*'A[2-] The &(0( also filed a Petition for Prohibition dated 1+ 1 l/ 200-[26] before the C!, whose Resol tions therein led to this "resent Petition' PARTIES' CLAI S Petitioner (!T an.hors its .laims on the following gro ndsD =irst, the grant of the "reliminar/ in3 n.tion was in grave ab se of dis.retion be.a se of "ro.ed ral infirmities in the Petition'[28] (e.ond, the C! had no 3 risdi.tion to r le on the validit/ or .orre.tness of the findings and re.ommendations of the (!T be.a se of the do.trines of "rimar/ 3 risdi.tion and e7ha stion of administrative remedies' !dditionall/, 3 di.ial review over the C2! is vested e7.l sivel/ in the ( "reme Co rt'[2+]

Third, the (!T6s s"e.ial a dit has basis in law'[2)] Res"ondent &(0(, on the other hand, .laims that the need for an in3 n.tion was rgent, sin.e the (!T6s s "ervisor had said that noti.es for disallowan.e were available at the C2!6s Re.ords Eivision'[,0] !s to the "ro.ed ral and s bstantial as"e.t, &(0( .laims the followingD =irst, the Petition for Prohibition satisfies the legal and "ro.ed ral re4 irements'[,1] (e.ond, the C! has the "ower to "rohibit the .ond .t of s"e.ial a dit and the iss an.e of noti.es of disallowan.e'[,2] Third, the s"e.ial a dit does not have stat tor/ basis'[,,] 0n s ""ort of the "rohibitor/ writ, &(0( .laims that it is onl/ the reg lar a ditor who .an .ond .t s .h a dits and iss e disallowan.esF that it is onl/ the .ommissioner of C2! who .an delegate this "owerF and that &(0( wo ld s ffer grave and irre"arable in3 r/, sho ld the (!T im"lement the latter6s re"ort' ISSUES <e .ategori:e the arg ments in the following mannerD 1' <hether or not "rohibition is the .orre.t remed/ 2' <hether or not the writ of "reliminar/ in3 n.tion was "ro"erl/ iss ed ,' <hether or not the (!T was validl/ .onstit ted RULING PR!HI(ITI!N IS N!T THE C!RRECT RE ED$. There is an appeal or a plain, speedy, and adequate remedy available. ! r le of th mb for ever/ "etition bro ght nder R le 6- is the navailabilit/ of an a""eal or an/ @"lain, s"eed/, and ade4 ate remed/'A[,*] Certiorari, "rohibition, and mandam s are e7traordinar/ remedies that histori.all/ re4 ire e7traordinar/ fa.ts to be shown[,-] in order to .orre.t errors of 3 risdi.tion'[,6] The law also di.tates the ne.essar/ ste"s before an e7traordinar/ remed/ ma/ be iss ed'[,8] To be s re, the availabilit/ of other remedies does not alwa/s lend itself to the im"ro"riet/ of a R le 6- "etition'[,+] 0f, for instan.e, the remed/ is ins ffi.ient or wo ld be "roven seless,[,)] then the "etition will be given d e .o rse'[*0] C2! itself has a me.hanism for "arties who are aggrieved b/ its a.tions and are seeking redress dire.tl/ from the .ommission itself' (e.tion *+ of Presidential Ee.ree No' 1**- readsD

!""eal from de.ision of a ditors' !n/ "erson aggrieved b/ the de.ision of an a ditor of an/ government agen./ in the settlement of an a..o nt or .laim ma/ within si7 months from re.ei"t of a .o"/ of the de.ision a""eal in writing to the Commission' !dditionall/, R le G, (e.tion 1 of the 1))8 C2! R les "rovidesD !n aggrieved "art/ ma/ a""eal from an order or de.ision or r ling rendered b/ the ! ditor embodied in a re"ort, memorand m, letter, noti.e of disallowan.es and .harges, Certifi.ate of (ettlement and >alan.es, to the Eire.tor who has 3 risdi.tion over the agen./ nder a dit'[*1] R le G0, (e.tion 1, .ontin es the linear "ro.ed re, to witD The "art/ aggrieved b/ a final order or de.ision of the Eire.tor ma/ a""eal to the Commission Pro"er'[*2] This dis. ssion of the different "ro.ed res in "la.e .learl/ shows that an administrative remed/ was indeed available' To allow a "remat re invo.ation of R le 6- wo ld s bvert these administrative "rovisions, nless the/ fall nder the established e7.e"tions to the general r le, some of whi.h are as followsD 1$ when the 4 estion raised is " rel/ legalF 2$ when the administrative bod/ is in esto""elF ,$ when the a.t .om"lained of is "atentl/ illegalF *$ when there is rgent need for 3 di.ial interventionF -$ when the .laim involved is smallF 6$ when irre"arable damage will be s fferedF 8$ when there is no other "lain, s"eed/ and ade4 ate remed/F +$ when strong " bli. interest is involvedF )$ when the s b3e.t of the .ontrovers/ is "rivate landF 10$ in quo warranto "ro.eedings'[*,] &(0( .laims that its .ase falls within the e7.e"tions, be.a se #a$ the (!T s "ervisor has threatened to iss e noti.es of disallowan.eF[**] #b$ &(0( did nothing to sto" the threatened iss an.es or the " bli. a""earan.es of the (!T s "ervisorF[*-] #.$ the "etitionBre4 est filed with the C2! has not been a.ted "on as of dateF[*6] #d$ &(0( was denied d e "ro.ess be.a se (!T had a.ted with "artialit/ and biasF[*8] and #e$ the s"e.ial a dit was illegal, arbitrar/, or o""ressive, having been done witho t or in e7.ess or in grave ab se of dis.retion'[*+] !ll of these .laims are baseless' =irst, a threat to iss e a noti.e of disallowan.e is s"e. lative,

absent a.t al "roof' 5oreover, even if the threat were real, it wo ld not fall nder an/ of the e7.e"tions, be.a se the C2! r les "rovide an ade4 ate remed/ to dis" te a noti.e of disallowan.eD <ho 5a/ !""eal' % !n aggrieved "art/ ma/ a""eal from an order or de.ision or r ling rendered b/ the ! ditor embodied in a re"ort, memorand m, letter, )o*i+, o- .i/0llo10)+,/ and .harges, Certifi.ate of (ettlement and >alan.es, to the Eire.tor who has 3 risdi.tion over the agen./ nder a dit'fa.t al iss es that re4 ire some form of "roof in order that the/ ma/ be .onsidered' #?m"hasis s ""lied$[*)] (e.ond, &(0( also mentions the fa.t that the C2! has not a.ted on the former6s "etitionBre4 est both in the original Petition before the C![-0] and the "leadings before this Co rt'[-1] This ina.tion is, of .o rse, e7"lainable b/ the fa.t that the C! iss ed a TR2 and a writ of "reliminar/ in3 n.tion' 5oreover, the .ited two #2$ month dela/ is not so nreasonable as to re4 ire the tram"ling of "ro.ed ral r les' Third, the .laim that there was a denial of d e "ro.ess r ns .o nter to the .laim that there is a "ending "etitionBre4 est before the C2!' The fa.t that the "etitionBre4 est was not denied or dela/ed for reasons within the .ontrol of the C2! .ontradi.ts an/ .laim that there was a d e "ro.ess violation involved' =o rth, allegations of "artialit/ and bias are 4 estions of fa.t alread/ before the C2!' !s the Co rt has .larified, @[t]here is a 4 estion of law when the do bt or differen.e arises as to what the law is on a .ertain state of fa.ts, and not as to the tr th or the falsehood of alleged fa.ts'A[-2] ! 4 estion of fa.t e7ists when the do bt or differen.e arises as to the tr th or falsehood of fa.ts or when the 4 er/ invites .alibration of the whole eviden.e .onsidering mainl/ the .redibilit/ of witnesses, the e7isten.e and relevan./ of s"e.ifi. s rro nding .ir. mstan.es as well as their relation to ea.h other and to the whole, and the "robabilit/ of the sit ation'[-,] Tr e eno gh, 4 estions of fa.t re4 ire evidentiar/ "ro.esses, the @.alibration of the eviden.e, the .redibilit/ of the witnesses, the e7isten.e and the relevan.e of s rro nding .ir. mstan.es, and the "robabilit/ of s"e.ifi. sit ations,A[-*] es"e.iall/ @[i]f the 4 er/ re4 ires 7 7 7 the e7isten.e or relevan.e of s rro nding .ir. mstan.es and their relation to ea.h other, the iss e in that 4 er/ is fa.t al'H[--] &enerall/, these 4 estions of fa.t .annot be de.ided b/ a "etition for "rohibition nder R le 6-,[-6] be.a se the r le a""lies to 3 risdi.tional flaws bro ght abo t b/ la.k, e7.ess, or grave ab se of dis.retion'[-8] The Petition before the C! did not "resent an/thing to show that the remedies available to the &(0( were ins ffi.ient' 0f the Petition itself admitted to the e7isten.e of other remedies,[-+] then the b rden of "roving that there was an e7.e"tion was on the "art/ seeking that e7.e"tionF in the absen.e of "roof the Petition m st be denied'[-)] This b rden of "roof is @the d t/ of a "art/ to "resent s .h amo nt of eviden.e on the fa.ts in iss e as the law deems ne.essar/ for the establishment of his .laim'A[60] The fail re to f lfill the re4 irements of R le 6- disallows the C! from taking d e .o rse of the

PetitionF[61] otherwise a""eals and motions for re.onsideration wo ld be rendered meaningless,[62] as stated time and again b/ this Co rtD [0]f resort to a remed/ within the administrative ma.hiner/ .an still be made b/ giving the administrative offi.er .on.erned ever/ o""ort nit/ to de.ide on a matter that .omes within his or her 3 risdi.tion, then s .h remed/ sho ld be e7ha sted first before the .o rt6s 3 di.ial "ower .an be so ght' The "remat re invo.ation of the intervention of the .o rt is fatal to one6s .a se of a.tion' The do.trine of e7ha stion of administrative remedies is based on "ra.ti.al and legal reasons' The availment of administrative remed/ entails lesser e7"enses and "rovides for a s"eedier dis"osition of .ontroversies' = rthermore, the .o rts of 3 sti.e, for reasons of .omit/ and .onvenien.e, will sh/ awa/ from a dis" te ntil the s/stem of administrative redress has been .om"leted and .om"lied with, so as to give the administrative agen./ .on.erned ever/ o""ort nit/ to .orre.t its error and dis"ose of the .ase'[6,] 7 7 7' 5oreover, .o rts have a..orded res"e.t for the s"e.iali:ed abilit/ of other agen.ies of government to deal with the iss es within their res"e.tive s"e.iali:ations "rior to an/ .o rt intervention'[6*] The Co rt has reasoned th sD <e have .onsistentl/ de.lared that the do.trine of e7ha stion of administrative remedies is a .ornerstone of o r 3 di.ial s/stem' The thr st of the r le is that .o rts m st allow administrative agen.ies to .arr/ o t their f n.tions and dis.harge their res"onsibilities within the s"e.iali:ed areas of their res"e.tive .om"eten.e' The rationale for this do.trine is obvio s' 0t entails lesser e7"enses and "rovides for the s"eedier resol tion of .ontroversies' Comit/ and .onvenien.e also im"el .o rts of 3 sti.e to sh/ awa/ from a dis" te ntil the s/stem of administrative redress has been .om"leted'[6-] The 1)+8 Constit tion .reated the .onstit tional .ommissions as inde"endent .onstit tional bodies, tasked with s"e.ifi. roles in the s/stem of governan.e that re4 ire e7"ertise in .ertain fields'[66] =or C2!, this role involves [T]he "ower, a thorit/, and d t/ to e7amine, a dit, and settle all a..o nts "ertaining to the reven e and re.ei"ts of, and e7"endit res or ses of f nds and "ro"ert/, owned or held in tr st b/, or "ertaining to, the &overnment, or an/ of its s bdivisions, agen.ies, instr mentalities, in.l ding government%owned and .ontrolled .or"orations with original .harter['] 7 7 7'[68] !s one of the three #,$ inde"endent .onstit tional .ommissions, C2! has been em"owered to define the s.o"e of its a dit and e7amination and to establish the te.hni4 es and methods re4 ired thereforF and to "rom lgate a..o nting and a diting r les and reg lations, in.l ding those for the "revention and disallowan.e of irreg lar, nne.essar/, e7.essive, e7travagant or n.ons.ionable e7"endit res or ses of government f nds and "ro"erties'[6+] Th s, in the light of this .onstit tionall/ delegated task, the .o rts m st e7er.ise .a tion when intervening with dis" tes involving these inde"endent bodies, for The general r le is that before a "art/ ma/ seek the intervention of the .o rt, he sho ld first avail of all the means afforded him b/ administrative "ro.esses' The iss es whi.h administrative agen.ies are a thori:ed to de.ide sho ld not be s mmaril/ taken from them and s bmitted to a

.o rt witho t first giving s .h administrative agen./ the o""ort nit/ to dis"ose of the same after d e deliberation'[6)] COA was not exercising judicial, quasi-judicial, or ministerial unctions when it issued !AO Order "o. #$$%-$&'. 9!2 2rder No' 200*%0), reads as followsD ()*+,CT- (.,C/A! A)0/T1/"2,(T/3AT/O" O" (,!,CT,0 T4A"(ACT/O" O5 T6, 3O2,4"7,"T (,42/C, /"()4A"C, (8(T,7 93(/(: 54O7 C8 #$$$ TO #$$%. P rs ant to C2! 5emorand m No' 2002%0-, dated ! g st 26, 2002, a team is hereb/ .onstit ted .om"osed of the following "ersonnel, namel/D 7777 who shall .ond .t a s"e.ial a dit on sele.ted transa.tions for the "eriod 2000%200* with "arti. lar attention on the .reation of s bsidiaries s .h as &(0( Pro"erties, 0n.', missing "aintings, .ash advan.es and allowan.esBbenefits of the 2ffi.ers and 5embers of the >oard of Tr stees of the &(0( within a "eriod of ten #10$ working da/s and shall s bmit the a""ro"riate re"ort thereon within five #-$ da/s after .om"letion of the a dit to the Eire.tor, 9egal and !d3 di.ation 2ffi.e I 2ffi.e of 9egal !ffairs who shall s "ervise the "ro"er im"lementation of this order' Travel and other in.idental e7"enses that ma/ be in. rred with this assignment shall be .harged against the a""ro"riate f nds of this Commission and the Team 9eaders are hereb/ a thori:ed to draw a .ash advan.e of P1,)00 to defra/ o t of "o.ket e7"enses s b3e.t to the s al a..o nting and a diting r les and reg lations' >/ virt e of (e.tion *0 of Presidential Ee.ree No' 1**- in relation to 0tem 000'!'6 of C2! 5emorand m 2002%0-,, the team shall have the a thorit/ to administer oaths, take testimon/, s mmon witnesses and .om"el the "rod .tion of do. ments b/ .om" lsor/ "ro.esses in all matters relevant to this a ditBinvestigation' 7 7 7'[80] This was obvio sl/ not an e7er.ise of 3 di.ial "ower, whi.h is .onstit tionall/ vested in the ( "reme Co rt and s .h other .o rts as ma/ be established b/ law'[81] Neither was it an e7er.ise of 4 asi%3 di.ial "ower, as administrative agen.ies e7er.ise it @to hear and determine 4 estions of fa.t to whi.h the legislative "oli./ is to a""l/ and to de.ide in a..ordan.e with the standards laid down b/ the law itself in enfor.ing and administering the same law'A[82] The Co rt has made this "oint .learD 0n .arr/ing o t their 4 asi%3 di.ial f n.tions, the administrative offi.ers or bodies are re4 ired to investigate fa.ts or as.ertain the e7isten.e of fa.ts, hold hearings, weigh eviden.e, and draw .on.l sions from them as basis for their offi.ial a.tion and e7er.ise of dis.retion in a 3 di.ial nat re'[8,]

Cet iss ing the 2rder was not ministerial, be.a se it re4 ired the e7er.ise of dis.retion' 5inisterial a.ts do not re4 ire dis.retion or the e7er.ise of 3 dgment, b t onl/ the "erforman.e of a d t/ " rs ant to a given state of fa.ts in the manner "res.ribed'[8*] The 2rder obvio sl/ involved dis.retion, in both the .hoi.e of the "ersonnel and the "owersBf n.tions to be given them' ! R le 6- "etition for "rohibition .an onl/ be aimed at 3 di.ial, 4 asi%3 di.ial, and ministerial f n.tions'[8-] (in.e the iss an.e of the 9!2 2rder assailed was not .hara.teri:ed b/ an/ of the three f n.tions, as shown s "ra, then it follows that the &(0( .hose the wrong remed/' 5oreover, @where it is the &overnment whi.h is being en3oined from im"lementing an iss an.e whi.h en3o/s the "res m"tion of validit/, s .h dis.retion [to en3oin] m st be e7er.ised with tmost .a tion'[86] THE 2RIT SH!ULD N!T HA"E (EEN ISSUED. <rits of in3 n.tion do not "erf n.toril/ iss e from the .o rts' =or the iss an.e of a writ of "reliminar/ in3 n.tion to be "ro"er, it m st be shown that the invasion of the right so ght to be "rote.ted is material and s bstantial, that the right of .om"lainant is .lear and nmistakable and that there is an rgent and "aramo nt ne.essit/ for the writ to "revent serio s damage' I) *3, 04/,)+, o- 0 +l,0r l,50l ri53*, *3, i//60)+, o- *3, i)76)+*i8, 1ri* +o)/*i*6*,/ 5r08, 046/, o- .i/+r,*io). 0n this .ase, res"ondents failed to show that the/ have a right to be "rote.ted and that the a.ts against whi.h the writ is to be dire.ted are violative of the said right' #?m"hasis s ""lied$[88] The C! Resol tion stated the following as its reason for iss ing the writ of "reliminar/ in3 n.tionD 0t sho ld be noted that the instant "etition "re.isel/ 4 estions the .reation of the res"ondent (!T, and .onse4 entl/, the validit/ of its a.tions' 0n order to .om"letel/ review and ad3 di.ate the matters raised herein, the iss an.e of a "reliminar/ in3 n.tion is warranted in the meantime in order to "reserve the stat s 4 o and to avoid grave and irre"arable in3 r/ sho ld the re.ommendations in the !25 and s"e.ial a dit re"ort regarding the noti.es of disallowan.e of .ertain &(0( transa.tions be enfor.ed' = rthermore, s .h re.o rse is ne.essar/ in order not to render moot an/ "rono n.ement that this Co rt ma/ render in this "etition'[8+] =rom its r ling, it is .lear that the C! erred in granting a TR2 and writ of "reliminar/ in3 n.tion' ! "reliminar/ in3 n.tion is "ro"er onl/ when the "laintiff a""ears to be .learl/ entitled to the relief so ght and has s bstantial interest in the right so ght to be defended'[8)] =a.t all/, there m st e7ist @a right to be "rote.ted and that the a.ts against whi.h the writ is to be dire.ted are violative of the said right'A[+0] !s this Co rt has "revio sl/ r led, @[w]hile the e7isten.e of the right need not be .on.l sivel/ established, it m st be .lear'A[+1] 9a.king a .lear legal right,[+2] the "rovisional remed/ sho ld not have been iss ed, all the more be.a se the fa.t al s ""ort for iss ing the writ had not been established' 0n giving in3 n.tive relief, .o rts .annot reverse the b rden of "roof, for to do so @wo ld ass me the "ro"osition

whi.h the "etitioner is in.e"tivel/ d t/ bo nd to "rove'A[+,] This .on.ern is not a mere te.hni.alit/, b t lies at the heart of "ro.ed ral law, for ever/ .ase before a .o rt of law re4 ires a .a se of a.tion'[+*] 5oreover, there was no rgen./ in the re4 est of the &(0( for in3 n.tive relief, be.a se no noti.e of disallowan.e had been iss ed' The C! held that sin.e there was a 4 estion on the validit/ of the (!T and a .orres"onding threat of a noti.e of disallowan.e, then the stat s 4 o m st be "reserved'[+-] 0ts .riteria falls short of the @.lear legal rightA standard' ?ven if there was a noti.e of disallowan.e,, the C2!6s r les for .ontesting the iss an.e wo ld have been the "ro"er remed/F otherwise, an/ administrative dis" te settlement "ro.ed re wo ld be rendered seless b/ the sim"le filing of an in3 n.tive s it in .o rt' THE SAT 2AS "ALIDL$ C!NSTITUTED. <e .ome now to the .r 7 of the dis" teD the validit/ of the .reation of the (!T' 5 .h as the "ro.ed ral dis. ssion alread/ leads this Co rt to a .on.l sion, in the interest of 3 sti.e and in .onsideration of the manifest desire of both "arties to have the matter dealt with in this for m, it shall r le on the validit/ of the (!T, notwithstanding the "ro.ed ral infirmities of the original Petition in the C!' This "ower is vested in this Co rt when so re4 ired b/ the e7igen.ies of the .ase'[+6] The e7er.ise of this "ower is es"e.iall/ im"ortant in this .ase, be.a se the 3 stifi.ation of &(0( for dire.tl/ seeking .o rt intervention is based on the alleged invalidit/ of the (!T6s .reation' Considering that .o rt intervention m st be " t to an end, and that the 4 estion has its roots in the "owers of a .onstit tional .ommission, we r le on the merits of the .ase' !s "revio sl/ dis. ssed, the C2! has @the "ower, a thorit/, and d t/ to e7amine, a dit, and settle all a..o nts "ertaining to the reven e and re.ei"ts of, and e7"endit res or ses of f nds and "ro"ert/, owned or held in tr st b/, or "ertaining to, the &overnment, or an/ of its s bdivisions, agen.ies, instr mentalities, in.l ding government%owned and .ontrolled .or"orations with original .harter['] 7 7 7'A[+8] The Constit tion f rther "rovides as followsD The Commission shall have e7.l sive a thorit/, s b3e.t to the limitations in this !rti.le, to define the s.o"e of its a dit and e7amination, establish the te.hni4 es and methods re4 ired therefor, and "rom lgate a..o nting and a diting r les and reg lations, in.l ding those for the "revention and disallowan.e of irreg lar, nne.essar/, e7.essive, e7travagant, or n.ons.ionable e7"endit res or ses of government f nds and "ro"erties'[++] The Constit tion grants the C2! the e7.l sive a thorit/ to define the s.o"e of its a dit and e7amination, and establish the te.hni4 es and methods therefor' P rs ant to this a thorit/, C2! 5emorand m No' 2002%0-, was "rom lgated, giving the &eneral Co nsel the a thorit/ to de" ti:e a s"e.ial a dit team, vi:D 0n .ase the Eire.tor, 9egal and !d3 di.ation 2ffi.e for the se.tor in the Central 2ffi.e finds that the transa.tionBevent is a "ro"er s b3e.t of s"e.ial or fra d a dit, he shall re.ommend the .reation of a s"e.ial a dit team for a""roval of the &eneral Co nsel who shall sign the offi.e order for the " r"ose' This memorand m shall .onstit te a thorit/ for the &eneral Co nsel to de" ti:e the team " rs ant to the "rovisions of (e.tion *0 of P'E' 1**-'[+)]

This 5emorand m, in t rn, draws its for.e from C2! Resol tion No' 2002%00-,[)0] the "reamble of whi.h statesD <;?R?!(, the Constit tion #!rti.le 0J, E #2$ $ invests the Commission on ! dit with the e7.l sive a thorit/ to define the s.o"e of its a dit and e7amination as well as establish the te.hni4 es and methods re4 ired thereforF <;?R?!(, inherent in this a thorit/ is the "rerogative of C2! to organi:e its man"ower in s .h a manner that wo ld be a""ro"riate to .o"e with its defined s.o"e of a dit as well as the methods and te.hni4 es it "res.ribes or ado"tsF <;?R?!(, sin.e s .h s.o"e of a dit, methods and te.hni4 es var/ from time to time as the e7igen.ies of the sit ation ma/ demand, C2! is im"elled to .ontin all/ restr .t re its organi:ation to kee" abreast of the ne.essar/ .hangesF <;?R?!(, invoking the inde"enden.e and fis.al a tonom/ whi.h the Constit tion g arantees, C2! has in the "ast s ..essf ll/ effe.ted vario s .hanges in its organi:ational str .t re within the limits of its a""ro"riationsF 7 7 7' The validit/ of the (!T, therefore, .annot be .ontested on the gro nds .laimed b/ &(0(' 0f ever it has a .a se for .om"laint, it sho ld refer to the .ond .t of the a dit, and not to the validit/ of the a diting bod/' !nd sin.e the C2! itself "rovides for the "ro.ed re to .ontest s .h a dit, the Co rt m st not interfere' (im"lif/ing it on.e and for all, The in.reasing "attern of law and legal develo"ment has been to entr st Hs"e.ial .asesH to @s"e.ial bodiesA rather than the .o rts' !s we have also held, the shift of em"hasis is attrib ted to the need to sla.ken the en. mbered do.kets of the 3 di.iar/ and so also, *o l,08, 9/p,+i0l +0/,/: *o /p,+i0li/*/ 0). p,r/o)/ *r0i),. *3,r,-or. #?m"hasis s ""lied$[)1] C!NCLUSI!N 2n.e again, the Co rt m st remind the "arties to 3 di.ial dis" tes to adhere to the standards for litigation as set b/ "ro.ed ral r les' These r les e7ist "rimaril/ for the benefit of litigants, in order to afford them both s"eed/ and a""ro"riate relief from a bod/ d l/ a thori:ed b/ law to dis"ense the remed/' 0f a litigant "remat rel/ invokes the 3 risdi.tion of a .o rt, then the "otential res lt might be a deafening silen.e' !ltho gh we re.ogni:e that 3 sti.e dela/ed is 3 sti.e denied,[)2] we m st also bear in mind that 3 sti.e in haste is 3 sti.e defiled' 2HERE#!RE, the Petition for Certiorari and Prohibition is &R!NT?E, the Resol tions dated ) ! g st 2006 and 2, (e"tember 200- in C!%&'R' (P No' )0*+* are hereb/ ANNULLED and SET ASIDE. The C! is dire.ted to dismiss the Petition in C!I&'R' (P No' )0*+*' S! !RDERED. Carpio, Velasco, Jr., Leonardo-De Castro, Brion, Peralta, Bersamin, Abad, Villarama, Jr., Pere , Mendo a, !e"es, and Leonen, JJ., .on. r'

Del Castillo, and Perlas-Bernabe, JJ', took no "art'

[1]

!ollo, ""' 2,%88'

[2]

0d' at 16%18F "enned b/ !sso.iate 1 sti.e ?lvi 1ohn (' !s n.ion, .hair"erson and .on. rred in b/ !sso.iate 1 sti.es !melita &' Tolentino and 5ariflor P' P n:alan%Castillo'
[,]

0d' at 12%1*, Penned b/ !sso.iate 1 sti.e !s n.ion, .hair"erson and .on. rred in b/ !sso.iate 1 sti.es 5ariano C' del Castillo #now a member of this Co rt$ and 5ariflor P' P n:alan%Castillo'
[*]

0d' at 1+*%20,' 0d' at 206%211'

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0d' at 20-F C!%&'R' (P No' )0*+*F "enned b/ !sso.iate 1 sti.e !s n.ion, and .on. rred in b/ !sso.iate 1 sti.es ;akim (' !bd lwahid and ?stela 5' Perlas%>ernabe #now a member of this Co rt$'
[8]

0d' at 8)%+1F Resol tion dated 2, (e"tember 200-' 0d' at 286%,21' 0d' at +,%+,F C!%&'R' (P No' )0*+* Resol tion' 0d' at +-%+6F dated ,0 (e"tember 200*' 0d' at 2+ 0d' at +8%++' 0d' at 108' 0d' at +8' 0d' at 10-%106' 0d' at )0 0d' 0d' 0d' at )0%)1' 0d' at 10+%1*2'

[+]

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[10]

[11]

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[1-]

[16]

[18]

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[20]

[21]

0d' at )2%)6' 0d' at ,1' 0d' at 211' 0d' at 1*,' 0d' at 160%18+' 0d' at 1+*%20,' 0d' at ,8' 0d' at ,+' 0d' 0d' at ,-6' 0d' at ,60' 0d' 0d' 1))8 RK9?( 2= C2KRT, R le 6-, (e.' 1, 2, L ,'

[22]

[2,]

[2*]

[2-]

[26]

[28]

[2+]

[2)]

[,0]

[,1]

[,2]

[,,]

[,*]

[,-]

#eparate $pinion o% Justice Jo&nson, 'arcia (. #weene", * Phil' 8-1, 8-* #1)0*$F $n)sitco (. Court o% Appeals, ,2- Phil' 106), 1086 #1))6$'
[,6]

2n)sitco (. Court o% Appeals, ,2- Phil' 106), 1086 #1))6$F *ew +rontier #u)ar Corp. (. !TC o% ,loilo, -*2 Phil' -+8, -)8 #2008$'
[,8]

Belisle ,n(estment - +inancin) Co., ,nc. (. #tate ,n(estment .ouse ,nc., 2,- Phil' 6,,, 6*0 #1)+8$'
[,+]

C&ua (. Court o% Appeals, ,)+ Phil' 18, ,0%,1 #2000$' !epublic (. Lacap, &'R' No' 1-+2-,, 2 5ar.h 2008, -18 (CR! 2--' People (. Lipao, &'R' No' 1-*--8, 1, =ebr ar/ 200+, -*- (CR! -2'

[,)]

[*0]

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1))8 R?G0(?E RK9?( 2= PR2C?EKR? 2= T;? C2550((02N 2N !KE0T #1))8 C2! R les$'

[*2]

0d'

[*,]

P&ilippine .ealt& ,nsurance Corporation (. C&inese 'eneral .ospital, *)6 Phil' ,*), ,61 #200-$'
[**]

!ollo, ""' ,6-%,66' 0d' at ,66' 0d' 0d' 0d' at ,66%,68' 1))8 C2! R les , R le G, (e.' 1' !ollo, ""' 1+- L 1)0' 0d' at ,--'

[*-]

[*6]

[*8]

[*+]

[*)]

[-0]

[-1]

[-2]

Vi)ilar (. Aquino, &'R' No' 1+0,++, 1+ 1an ar/ 2011, 6,) (CR! 882, 88+F De(elopment Ban/ o% t&e P&ilippines (. 'o, &'R' No' 16+88), 1* (e"tember 2008, -,, (CR! *60, *6+'
[-,]

Mendo a (. People, -00 Phil' --0, --+ #200-$' Cabaron (. People, &'R' No' 1-6)+1, - 2.tober 200), 60, (CR! 1, 8' 0d'

[-*]

[--]

[-6]

Padua (. !anada, *,) Phil' -,+, --2 #2002$F *ational Power Corporation (. Pro(ince o% 0ue on and Municipalit" o% Pa)bilao, &'R' No' 181-+6, 2- 1an ar/ 2010, 611 (CR! 81F $li(ares (. Marque , *+2 Phil' 1+,, 1)2 #200*$'
[-8]

1))8 RK9?( 2= C2KRT, R le 6-, (e.' 1' !ollo, "' 1+-' Teotico (. A)da, 28* Phil' )60, )8)%)+1 #1))1$'

[-+]

[-)]

[60]

Destre a (. !i1o a-Pla o, &'R' No' 186+6,, ,0 2.tober 200), 60* (CR! 88-, 8+-F *ew #un Valle" .omeowner2s Association ,nc. (. #an))unian) Baran)a", &'R' No' 1-66+6, 28 1 l/ 2011, 6-* (CR! *,+F #antos (. *ational #tatistics $%%ice, &'R' No' 18112), 6 !"ril 2011, 6*8 (CR! ,*-'
[61]

3illiam 'olan)co Construction Corporation, (. !a" Burton De(elopment Corporation, &'R'

No' 16,-+2, ) ! g st 2010, 628 (CR! 8*, +2%+,''

[62]

Dimarucot (. People, &'R' No' 1+,)8-, 20 (e"tember 2010, 6,0 (CR! 6-), 66+%66)F Domdom (. T&ird and +i%t& Di(isions o% #andi)anba"an, &'R' Nos' 1+2,+2%+,, 2* =ebr ar/ 2010, 61, (CR! -2+'
[6,]

$n)suco (. Malones, &'R' No' 1+206-, 28 2.tober 200), 60* (CR! *)), -11%-12' +ua, Jr. (. Commission on Audit, &'R' No' 18-+0,, * Ee.ember 200), 608 (CR! ,*8'

[6*]

[6-]

Addition .ills Mandalu"on) Ci(ic - #ocial $r)ani ation ,nc. (. Me)aworld Properties and .oldin)s ,nc., &'R' No' 18-0,), 1+ !"ril 2012, 680 (CR! +,, +)'
[66]

1)+8 Constit tion, !rt' 0J' 0d' at (e.' 2#1$' *ational ,rri)ation Administration (. 4nciso, -2, Phil' 2,8, 2*2 #2006$'

[68]

[6+]

[6)]

Addition .ills Mandalu"on) Ci(ic - #ocial $r)ani ation ,nc. (. Me)aworld Properties and .oldin)s ,nc., s "ra note 6-, at )0'
[80]

!ollo, ""' +-%+6' 1)+8 C2N(T0TKT02N, !rt' G000, (e.' 1'

[81]

[82]

#mart Communications, ,nc. (. *ational Telecommunications Commission, *-6 Phil' 1*-, 1-6 #200,$'
[8,]

0d' at 1-6%1-8' 4spiridion (. Court o% Appeals, &'R' No' 1*6),,, + 1 ne 2006, *)0 (CR! 28,, 288' 1))8 RK9?( 2= C2KRT, R le 6-, (e.' 2' 4rmita (. Aldecoa-Delorino, &'R' No' 1881,0, 8 1 ne 2011, 6-1 (CR! 12+, 1,6%1*0'

[8*]

[8-]

[86]

[88]

4quitable PC, Ban/, ,nc. (. +ernande , &'R' No' 16,118, 1+ Ee.ember 200), 60+ (CR! *,,, **0'
[8+]

!ollo, "' +1'

[8)]

Power #ites and #i)ns, ,nc. (. 5nited *eon, &'R' No' 16,*06, 2* November 200), 60- (CR! 1)6, 20+'
[+0]

*ational Power Corporation (. .on. Vera, 2-2 Phil' 8*8, 8-2 #1)+)$'

[+1]

Power #ites and #i)ns, ,nc. (. 5nited *eon, s "ra note 8)'

[+2]

(ee +ua, Jr. (. Commission on Audit, s "ra note 6*F !osario (. Court o% Appeals, &'R' No' +)--*, 10 1 l/ 1))2, 211 (CR! ,+*, ,+8'
[+,]

'o(ernment #er(ice ,nsurance #"stem (. .on. +lorendo, 2-+ Phil' 6)*, 80- #1)+)$' !epublic (s. .on. De Los An)eles, 1*+%> Phil' )02, )21 #1)81$' !ollo, ""' 8)%+1, +,%+*'

[+*]

[+-]

[+6]

Dela Llana (. T&e C&airperson, Commission on Audit, &' R' No' 1+0)+), 8 =ebr ar/ 2012, 66- (CR! 186'
[+8]

1)+8 C2N(T0TKT02N, at !rt' 0J, (e.' 2#1$' 1)+8 C2N(T0TKT02N, at !rt' 0J%E, (e.' 2#2$'

[++]

[+)]

C2! 5emorand m No' 2002%0-,, & idelines on the Eelineation of the ! diting and !d3 di.ation = n.tions, 26 ! g st 2002, 000 #!$ (e.' 6'
[)0]

C2! Resol tion No' 2002%00-, C2! 2rgani:ational Restr .t ring, 18 5a/ 2002, Preamble'

[)1]

0ualitrans Limousine #er(ice ,nc. (. !o"al Class Limousine #er(ice, 2-) Phil' 18-, 1+) #1)+)$'
[)2]

Att". #anc&e (. Jud)e Vestil, ,-+ Phil' *88, *+1 #1))+$'