Uy, et al v. COA, GR No.

130685, March 21, 2000

Point of the Case: 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

Topic: Section 2-General Function and Powers (Examine and Audit:Government revenues and
expenditures.

FACTS: Former Governor Paredes had dismissed from service more than sixty employees. He alleged that
the reason for the dissmisal was 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 can disallow the payment of back wages of illegally dismissed employees
which has been decreed pursuant to a final decision of the CSC.

HELD: NO. The court ruled that the payment of backwages to illegally dismissed government employees
can hardly be described as irregular, unnecessary, excessive, extravagant or unconscionable. the audit
authority of COA is intended to prevent irregular, unnecessary, excessive, extravagant or unconscionable
expenditures, or uses of government funds and properties. 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