Jose Cojuangco, 3 others liable for P27M disallowance during 2005 SEA Games

THE Commission on Audit has denied a petition from former Philippine Southeast Asian Games Organizing Committee (PHILSOC) president Jose Cojuangco Jr. and three other officials seeking relief from liability over the P27.22 million disallowed fund transfers from the Philippine Sports Commission (PSC) in relation to the 2005 Southeast Asian Games (SEA Games).

The COA en banc swept aside the petitioners’ contention that they were denied due process due to improper service of notices and that the commission has no jurisdiction on the matter since PHILSOC is a private entity.

The eight-page decision was signed by COA chairperson Gamaliel A. Cordoba and Commissioners Roland Café Pondoc and Mario G. Lipana.

Other than Cojuangco, also held liable in the Notice of Disallowance were PHILSOC Secretary General Stephen Hontiveros, Deputy Secretary General Jose Capistrano Jr., and Treasurer Ernesto Ortiz Luis.

State auditors originally issued a Notice of Suspension on November 5, 2009 on the ground that the P27,224,245.24 consisted of expenditures for transactions that were not approved by the PHILSOC or unsupported by receipts or other required documents.

After the PHILSOC officials failed to settle the Notice of Suspension (NS), a Notice of Disallowance (ND) was issued on November 11, 2015.

Without any appeal from the persons held liable, the ND became final and executory and a Notice of Finality of Decision (NFD) was issued on August 4, 2016 followed by the COA Order of Execution dated September 6, 2016.

In their petition, the PHILSOC officers said they were deprived of the opportunity to explain the expense items because the NS, ND, and NFD were all served to the PSC chairman who in turn forwarded the notices to them.

They pointed out that the COA audit team applied the Government Accounting Standards for liquidation although the PHILSOC was a non-government organization hence bound only by the terms of the Memorandum of Agreement it signed with the PSC.

“The petitioners’ having filed the instant petition assailing the NS, ND and NFD constitutes an exercise of their right to be heard; hence, their contention that they were denied due process, is misplaced,” the COA said.