On November 8, 2000, the then Department of Budget and Management (DBM)

Secretary Benjamin E. Diokno issued a letter 1 allowing the local water districts to
continue the grant of allowances/fringe benefits subject to certain conditions

On April 27, 2001, also the then DBM Secretary Emilia Boncodin individually
issued a letter2 likewise allowing the local water districts to continue the grant of
allowances/fringe benefits that was an established and existing practice as of the cut-off
date of December 31, 1999.

1) to wit:

… petitioner cannot find solace in the defense of good faith

since not only are senior government officials, such as the
petitioner’s concerned officials herein, expected to update
their knowledge on laws that may affect the performance of
their functions, but the laws subject of this case are of such
clarity that the concerned officials could not have mistaken
one for the other. Unlike in the cases cited by the petitioner,
there exists no question as to the applicability nor validity of
the law herein.

1
Rollo, pp. 30-32.
2
Rollo, pp. 28-29.