MANILA -- The Supreme Court has ordered the Commission on Audit (COA) to execute a 2015 ruling by the Construction Industry Arbitration Commission (CIAC) in favor of a private firm seeking PHP10.17 million in payment for partial work performed in putting up a municipal water supply project in Carranglan town, Nueva Ecija province.
In its decision posted online Feb. 14, the SC ruled in favor of Sunway Builders which has filed a money claim against the COA.
Sunway had earlier entered a contract with the municipality for the water system project which commenced in 2005. The project, however, was not completed in full despite a completion date extension, prompting the town to issue a resolution terminating the contract in 2011.
The firm claimed it had accomplished 59 percent of the project and should be paid for the work.
Sunway then filed a complaint before the CIAC which ruled in favor of the firm in its 2015 decision. The firm subsequently used the CIAC award to file a money claim before the COA.
The COA, however, denied the claim and ruled that it lacked legal basis, adding that the firm failed to substantiate that it had completed 59 percent of the total project.
Ruling against state auditors, the SC said COA “stepped beyond its limited authority” in dealing with the money claim “which was on a final and executory CIAC award.”
“The Court recognizes (that) the law vests COA proper with original jurisdiction over money claims or collection suits filed against the government. However, it is clear that the authority to take cognizance of these cases is not exclusive to the COA proper. Other tribunals or adjudicative bodies, such as the CIAC, share this original jurisdiction,” the court said.
“CIAC has original and exclusive jurisdiction, in particular, over disputes arising from, or connected with, construction contracts, including contracts to which the government is a party,” the SC said and explained that “COA is devoid of power to disregard the principle of immutability of final judgment.” (PNA)
