The Philippine Supreme Court upheld sanctions tied to Malampaya Fund projects and ruled that the Office of the Ombudsman may investigate officials before state auditors’ findings become final.
The ruling, announced Oct. 20, sustained administrative findings involving Commission on Audit (COA) auditor Ronelo O. Del Socorro and other officials. The offenses cited include grave misconduct, serious dishonesty and gross neglect of duty. Penalties include dismissal from government service, forfeiture of retirement benefits and a permanent ban on public office.
The case centers on money allocated under a provisional agreement over Palawan’s disputed share of Malampaya energy revenue. The Department of Budget and Management released ₱2.572 billion in 2008 for recipients in Palawan. The provincial government was allotted ₱966 million; the balance was divided among Palawan’s two congressional districts and Puerto Princesa City. The provincial allocation was intended for electrification, health care, education and infrastructure.
A COA special audit prompted four administrative complaints concerning procurement, payment records and accounts of project progress. The court said the Ombudsman examined bids, contracts and inspection documents alongside the audit material. The court found that deficient bidding checks benefited winning contractors and inaccurate progress certifications led to undeserved payments, harming the government and public.
The petitioners argued that the disputed status of COA’s findings made the Ombudsman’s investigation premature. The Ombudsman found that COA had issued a final audit report, according to the court’s decision, but the officials contested the findings’ finality and effect. The Supreme Court rejected their argument, saying the Ombudsman had assessed the underlying records independently.
The justices cited Cabrera v. Marcelo, a 2004 ruling in which a challenge to COA findings did not halt an Ombudsman inquiry. The court said audit findings may inform the Ombudsman’s work but do not control it.
The ruling concerns administrative liability. It also records that Del Socorro and fellow respondent Edwin G. Iglesia were acquitted of a falsification charge in 2023.
