FACTS: Former Governor Paredes dismissed from service more than sixty employees, allegedly to scale down the operations of the office. The Merit Systems Protection Board (under CSC) rendered a decision that the reduction in work force was not done in accordance with civil service rules and regulations, and ordered the reinstatement of the workers. The Commission on Audit (COA) rendered a decision ruling that the back salaries of the workers have become the personal liability of the Governor because the illegal dismissal was done in bad faith.
ISSUE: Whether or not COA, in the exercise of its power to audit, can disallow the payment of back wages of illegally dismissed employees by the Provincial Government of Agusan del Sur which has been decreed pursuant to a final decision of the CSC.
HELD: NO. The audit authority of COA is intended to prevent irregular, unnecessary, excessive, extravagant or unconscionable expenditures, or uses of government funds and properties. Payment of backwages to illegally dismissed government employees can hardly be described as irregular, unnecessary, excessive, extravagant or unconscionable.
Further, Gov. Paredes was never made a party to nor served a notice of the proceedings before the COA and it would be unfair to hold him personally liable for the claims of petitioners without giving him an opportunity to be heard and present evidence in his defense.
ISSUE: Whether or not COA, in the exercise of its power to audit, can disallow the payment of back wages of illegally dismissed employees by the Provincial Government of Agusan del Sur which has been decreed pursuant to a final decision of the CSC.
HELD: NO. The audit authority of COA is intended to prevent irregular, unnecessary, excessive, extravagant or unconscionable expenditures, or uses of government funds and properties. Payment of backwages to illegally dismissed government employees can hardly be described as irregular, unnecessary, excessive, extravagant or unconscionable.
Further, Gov. Paredes was never made a party to nor served a notice of the proceedings before the COA and it would be unfair to hold him personally liable for the claims of petitioners without giving him an opportunity to be heard and present evidence in his defense.