COA: Astoria Hotel’s billing legit but CHED does not have to pay yet

THE Commission on Audit has upheld the validity of the claim filed by Astoria Hotels and Resorts against the Commission on High Education for unpaid billing dating back four years but said the CHED cannot be obligated to pay since the signatory to the petition was not duly authorized.

COA Chairperson Gamaliel Cordoba and Commissioners Roland Café Pondoc and Mario G. Lipana advised Astoria Hotels to refile its claim through an authorized officer, noting the absence of a board resolution authorizing finance officer Alvin Chris dela Cruz to file the claim.

Dela Cruz filed the petition citing CHED’s non-payment of bills for the use of the venue, accommodation, and food services for the CHED International Affairs Staff networking session/yearend assessment held from December 4 to 6, 2019.

The claim totaled P318,500 but the hotel also asked for legal interest.

The bill included six one-bedroom suites for two nights, a banquet for 100 persons at P1,200 per head for two days, and meals for 10 persons at P950 per head for three days.

However, the CHED official designated as an education program specialist went on leave before settling the bill, causing the funding to lapse since the payment for the hotel was not obligated.

The audit team leader recommended the grant of Astoria’s claim, noting that the delivery of services and goods was fully documented.

While agreeing that the transaction appears to be valid, the COA Commission Proper said it may be granted only if the petition is filed by a properly authorized officer.

“Despite what appears to be a legitimate claim by Astoria against the CHED, this petition should however be dismissed outright for lack of authority and personality of Mr. Dela Cruz to initiate this petition on behalf of Astoria as he is not a valid representative of the corporation,” the Commission declared.

It pointed out that under the Corporation Code of the Philippines, a company’s power to sue and be sued is exercised by the Board of Directors hence any individual officer of a corporation cannot exercise such corporate powers without authority from the board.