BENGUET STATE UNIVERSITY VS.

COA

G.R. No. 169637

Facts: Pursuant to Section 4(d) of RA 8292 (Higher Education Modernization Act of 1997), the Board of
Regents of Benguet State University (BSU) passed and approved a Board Resolution granting rice subsidy
and health care allowances to its employees. The same was disallowed in audit. The COA cited that such
allowances are not within the purview of Sec 4(d) of RA 8292, and violate Art. IX-B of the Constitution
which prohibits elective or appointive public officers or employees from receiving additional, double or
indirect compensation, unless authorized by law. BSU filed a petition for review with the COA which was
denied. Likewise, its motion for reconsideration was denied. Hence, the instant petition.

Issue: Whether the petitioner is authorized to grant Health Care Allowance and Rice Subsidy to its
employees

Ruling:

NO. Under the principle of ejusdem generis, if a statute describes things of a particular class or kind is
accompanied by words of a generic character, then the generic word is limited to things of a similar
nature with those particularly enumerated, UNLESS there be something in the context of the statue
which would repel such inference.

Sec 4(d) of RA 8292 provides that, “the income generated by the university may be disbursed by its
Governing Board for “instructions, research, extension, or other programs/projects if the university or
colleges.”

Health Care Allowance and Rice Subsidy are not intended for academic programs similar to instruction,
research or extension. Therefore, BSU cannot rely on Sec 4(d) as the legal basis for the grant of the
allowances.

Further, COA was correct that such allowances violate Article IX-B of the Constitution.

Besides, the said allowances are not within the purview of Sec. 12 of RA 6758 (Salary Standardization
Law) which provides for consolidation of allowances in the standardized salary rates.