BFAR EMPLOYEES UNION

vs
COA
G. R. No. 169815, August 13, 2008, 562 SCRA 134
FACTS:

The Bureau of Fisheries and Aquatic Resources Employees Union requested for
a Food Basket Allowance (FBA), with justifying the request on the high cost of living,
and also relying on the Employees Suggestions and Incentive Awards System,
which: “includes the granting of incentives that will help employees overcome present
economic difficulties, boost their morale, and further commitment and dedication to
public service.” On post-audit, however, the Commission on Audit – Legal and
Adjudication Office (COA-LAO) disallowed the grant of the FBA ruling that it had no
legal basis and violated the General Appropriations Act of 1999. The BFAR moved
for reconsideration and prayed for the lifting of the disallowance, arguing that the
grant would enhance the welfare and productivity of the employees. COA-LAO
denied the motion. The petitioner appealed to the COA-LAO but denied the decision,
and likewise denied the motion for reconsideration.

ISSUE:

Whether or not the approval of the DA Undersecretary can authorize the release
of the FBA. Whether or not the disallowance is unconstitutional as it contravened the
fundamental principle of the State enshrined under Sections 9 and 10, Article II of the
1987 Constitution.

RULING:

The petition is DENIED. The Decision and Resolution of the Commission on

Audit – Legal and Adjudication Office dated April 8, 2005 and August 5, 2005,
respectively, in LAO-N-2005-119, are AFFIRMED.

Reason: Section 4.5 of Budget Circular No. 16, all agencies are prohibited from
granting “[…] any other form of incentives/allowances except those authorized via
Administrative Order by the Office of the President.”

In this case, no Administrative Order has been issued, therefore the claim has no
merit. Further, State principles and policies enumerated in Article II of the 1987
Constitution are the disregard of which can give rise to a cause of action in the
courts. They do not embody judicially enforceable constitutional rights but guidelines
for legislation.“