The Supreme Court (SC) unanimously affirmed the Commission on Audit (COA) ruling, which declared as illegal the 2008 car plan scheme implemented by the Philippine Rice Research Institute (PhilRice) to entice its officials and employees to stay in the agency.
The Supreme Court unanimously affirmed the Commission on Audit ruling, which declared as illegal the 2008 car plan scheme implemented by the Philippine Rice Research Institute to entice its officials and employees to stay in the agency.
The petitioners in the case are Sophia T. Borja, Ma. Ethel P. Gibe, Mary Grace DG. Corpuz, Joy T. Agudia, Aurea C. Cosio, Wilfredo B. Collado, Myrna D. Malabayabas, Evelyn F. Javier, Eduardo Jimmy P. Quilang, Rizal G. Corales, Renato B. Bajit, Manuel Jose C. Regalado, Glenda DC. Ravelo, Leo C. Javier, Caesar Joventino M. Tado, Rhemilyn Z. Relado and Babylinda 0. Reyes.
In determining petitioners’ liability to return the disallowed amounts, the SC said it is guided by its landmark ruling in the case of Madera v. Commission on Audit. Likewise, the SC noted that the operations of PhilRice as a research and development institution, entailed countless of land travels, which necessitated the costs, such purchase price of vehicle, fuel, oil, maintenance expenses and comprehensive insurance premiums.
The car plan scheme operated as a rental plan under which qualified officials and employees procured vehicles of their choice through the financing scheme of the Philippine National Bank for a period of three years, payable on a monthly installment basis. Following an audit conducted in 2013, the COA issued NDs issued for “expenses incurred during the trips made using rented private vehicles under the car plan.”
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