Maritime company of the philippines vs reparationscommission (40 SCRA 170)Republic of the PhilippinesSUPREME COURTManilaEN BANC G.R. No. 949! "ul# $!% 99&.M. CONSUN"'% 'NCORPORATE&% petitione(% )s.T*E COMM'SS'ON ON AU&'T% (espon+ent.Castillo% ,a-an% Tan . Pantaleon fo( petitione(. GUT'ERRE/% "R.% ".0pThis petition see1s to set asi+e the +ecision of the Co--ission on Au+it 2hich +enie+ the appeal of the petitione( f(o- the Notice of Au+it &isallo2ance No. 3A455 issue+ b# the Co(po(ate Au+ito( of the Met(opolitan 6ate(2o(1s an+ Se2e(a7e S#ste- 8M6SS9 in connection 2ith the petitione(:sCont(act fo( Pu-p ,ift Station an+ Rehabilitation0 Ton+o Pu-p Station 8Cont(act No. PS49 2ith the M6SS. The Co(po(ate Au+ito( (ule+ that the petitione( ha+ (ecei)e+ a p(ice escalation o)e(pa#-ent in the a-ount of P!%955%;5A>% Repl#9As (e7a(+s the issue of p(ice escalation% A(ticle J of Cont(act No. PS4 states0ESCA,AT'ON C,AUSE;.5 't is eGp(essl# a7(ee+ b# both pa(ties that the p(o)isions an+ 7ui+elinesfo( co-putation an+ pa#-ent of p(ice escalation on inf(ast(uctu(e cont(acts of the '-ple-entin7 Rules an+ Re7ulations of P.&. shall be (ec1one+ f(o- the +ate of bi++in7 fo( bi++e+ cont(acts.> As -entione+% escalations f(o- Ma# 9= to Septe-be( 9=$ 2e(e al(ea+# inco(po(ate+ into the Cont(act an+ A(t. J' the(eof 7o)e(ne+ escalation f(o-Octobe( 9=$ onl#. Since it 2as f(o- $B Ma# 9= that the escalation 2as pai+ b# inco(po(atin7 it into the Cont(act% it necessa(il# follo2s that the Allo2able Escalation Rate shoul+ be (ec1one+ f(o- the sa-e +ate of $B Ma# 9=. 8Rollo% pp. !94459Consi+e(in7 the abo)e An+in7s% 2e (ule that the COA co--itte+ 7(a)e abuse of +isc(etion in (eHui(in7 (ei-bu(se-ent in the a-ount of P!%955%;5