They Refused to Pay COA Audit Fees—The Supreme Court Responded
π COMMERCIAL LAW LECTURE Local Water Districts and COA Audit Jurisdiction I. INTRODUCTION In Commercial Law and Constitutional Law, it is important to understand what kind of corporation an entity is , because this determines which laws apply and which government agencies have authority over it . This lecture discusses a Supreme Court ruling involving the Commission on Audit (COA) and a Local Water District (LWD) , specifically the Leyte Metropolitan Water District (LMWD) . II. FACTS OF THE CASE (SIMPLIFIED) The Commission on Audit (COA) conducted a special audit of the accounts of the Leyte Metropolitan Water District (LMWD) . After the audit, COA requested payment of auditing fees from LMWD. LMWD refused to pay , through its General Manager, Feliciano. Feliciano cited Presidential Decree No. 198 and Republic Act No. 6758 , claiming that: LMWD is not required to pay auditing fees , and LMWD is not a GOCC . Feliciano even demanded a refund of all auditing fees previously paid b...