Gonzaga vs COA, G.R. No.

244816 (Jun 29, 2021)

FACTS

The PICCI is a government-owned or controlled corporation (GOCC)7 created under Presidential Decree

(P.D.) No. 520,8 as amended by P.D. No. 710,9 with the Bangko Sentral ng Pilipinas (BSP) as its sole
stockholder.

The COA found that for CYs 2009 and 2010, PICCI incurred net losses in its
operations.16 Notwithstanding, the PICCI Board of Directors submitted its Proposed Budget for 2010 on
November 24, 2009, which included the following particulars: a) Director's Allowance, b) Director's Per
Diem, c) Director's Christmas Bonus, and d) Director's Anniversary Bonus, among others.17 The BSP
Monetary Board approved the Proposed 2010 Budget on December 29, 2009.

 The SA and ATL opined that since PICCI incurred net losses and no net income for CYs 2009 and 2010,
the grant of the benefits and allowances aforementioned for the succeeding CYs 2010 and 2011 violated
the law following the issuance of ND Nos.  PICCI-13-002-(12),24 PICCI-13-003-(12),25 PICCI-13-004-
(12),26 PICCI-13-005-(12)27 and PICCI-13-006-(12),28 all dated December 6, 2013 against petitioners,
which disallowed the payment of the benefits aforesaid to the petitioners who are part of the Board of
Directors of PICCI in the total amount P882,902.06,29 which NDs Gonzaga received on December 11,
2013.

petitioners appealed before the Office of the Cluster Director of the Corporate Government Sector-
Cluster 1