PDRC recently held its 15th commercial arbitration training seminar (CATS) on July 9 to 13, 2018 at the University of the Philippines College of Law at Bonifacio Global City in Taguig City. Fifty lawyers attended the training.

The five-day intensive training began with an introduction to arbitration by Prof. Mario E. Valderrama. This was followed by a discussion on the arbitration agreement and commencement of arbitration by PDRC Corporate Secretary Atty. Patricia-Ann Prodigalidad.

On the second day, Atty. Gwen de Vera spoke on emergency arbitration and the arbitral tribunal, after which Atty. Shiley F. Alinea, PDRC Deputy Secretary General, discussed consolidation, multiple contracts, joinder of parties, and preliminary matters.

The third day featured the lecture by Atty. Ricardo Ongkiko on the conduct of the case management conference. Atty. Teodoro Kalaw IV then spoke on arbitration hearings and the arbitral award.

On the fourth day, Atty. Donemark L. Calimon talked on the recognition, enforcement, setting aside and refusal to enforce awards. PDRC Vice President Atty. Salvador Panga, Jr. talked on international arbitration, focusing on the UNCITRAL Model Law and Arbitration Rules.

On the last day, the participants staged a mock arbitration facilitated by Atty. Jay Santiago (lead), and Attys. Julius Omila and Mary Kimberly See. In the afternoon, they took a written assessment examination to qualify them to become PDRC-trained arbitrators.

COA review of final awards against the Philippine government

PART 1

As a general rule, government funds and properties may not be seized under writs of execution or garnishment to satisfy judgment awards. This is based on obvious considerations of public policy. Disbursements of public funds must be covered by the corresponding appropriation as required by law. The functions and public services rendered by the State cannot be allowed to be paralyzed or disrupted by the diversion of public funds from their legitimate and specific objects, as appropriated by law [Commissioner of Public Highways v. San Diego, 31 SCRA 617, 625 (1970)]. Before execution may proceed against any government agency or instrumentality, a separate action for the payment of the judgment award must first be filed with the Commission on Audit (“COA”) (NPC Drivers and Mechanics Assoc’n v. National Power Corp., G.R. No. 156208, November 21, 2017; “NPC DAMA”).

Authority of COA to settle money claims

Section 26 of Presidential Decree No. 1445 (1978), or the “Government Auditing Code of the Philippines,” provides that the COA has primary jurisdiction over money claims against the government or any of its subdivisions, agencies and instrumentalities.

General jurisdiction. The authority and powers of the Commission shall extend to and comprehend all matters relating to auditing procedures, systems and controls, the keeping of the general accounts of the Government, the preservation of vouchers pertaining thereto for a period of ten years, the examination and inspection of the books, records, and papers relating to those accounts; and the audit and settlement of the accounts of all persons respecting funds or property received or held by them in an accountable capacity, as well as the examination, audit, and settlement of all debts and claims of any sort due from or owing to the Government or any of its subdivisions, agencies and instrumentalities. The said jurisdiction extends to all government-owned or controlled corporations, including their subsidiaries, and other self-governing boards, commissions, or agencies of the Government, and as herein prescribed, including nongovernmental entities subsidized by the government, those funded by donations through the government, those required to pay levies or government share, and those for which the government has put up a counterpart fund or those partly funded by the government. (Italics supplied)

On October 25, 2000, in response to numerous petitions for mandamus and indirect contempt against local governments and their officials who refused to comply with writs of execution issued by Regional Trial Courts, the Supreme Court issued Adm.