The NHMFC issued a letter of guaranty in favor of Severio H. Gonzales Construction Corporation Inc. (SHGCCI). Due to the assurance that the project is above board and in accordance with the NHMFC-CMP guidelines, petitioner approved the payment to SHGCCI. Upon verification, it was discovered that the project was three months in arrears in their amortization. As a consequence, petitioner tasked the Committee on Evaluation to investigate.
Whether or not COA committed a grave abuse of discretion when it held petitioner liable for the payment of the loan.
YES. It is the basic tenet of due process that the decision of a government agency must state the facts and the law on which the decision is based. The COA decision merely stated conclusions of law.