OSMENA VS.

COA
G.R. NO. 98355

NOCON, J.:

FACTS:

The City Treasurer issued a certificate of availability of funds for the decided construction of
modern abbatoir in the amount of FIVE MILLION FOUR HUNDRED NINETEEN
THOUSAND AND ONE HUNDRED EIGHTY (P5,419,180.00) PESOS. After the bidding H.
FRANCO CONSTRUCTION COMPANY , INC. (HFCCI) was awarded to do the construction.
Thus the City Mayor already entered a contract to HFCCI where it includes the EIGHT
MILLION THREE HUNDRED SIXTY-EIGHT THOUSAND NINE HUNDRED

TWENTY(P8,368,920.00) PESOS. The City Treasurer then certified the availability of funds

due to the contractor that also worth millions and the second and last payment are included in
another year’s budget. Sen. John H. Osmena then the OIC of the City of Cebu ordered a
suspension of the poject and a review of the contract by the COA. HFCCI instituted a civil
action due to the uncollected amount. It is answered by the City of Cebu through the city mayor
entered into a compromise agreement appoved by the court.

ISSUE:

Whether or not the petitioner is liable in the previous of Mayor Duterte.

RULING:

No. Premises considered, the Compromise Agreement entered into between the City of Cebu,
through its Mayor, Tomas Osmeña is void being merely a derivative of a previously void
Abattoir Contract, and thus becomes a personal liability of the officer who entered into it
pursuant to Sec. 87 & 103 of P.D. 1445.

WHEREFORE, petition is hereby DISMISSED for lack of merit.