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Tuesday, September 16, 2003
Council told: Justify or refund excess pay
By Aledel A. Gonzales

IF THE Mandaue City Council cannot justify their overpaid salaries, the officials should comply with the recommendation of the Commission on Audit (COA) and agree to refund the excess of the salaries they received for the past five years.

Mayor Thadeo Ouano said yesterday that he was also given a similar notice during his first term as a mayor. He refunded the excess amount on installment basis.

Ouano, who admitted that he doesn’t know exactly how much salary he gets, said the refund must be completed before their term ends in June next year.

Code

But for City Councilor Carlo Fortuna, a provision in the Local Government Code is enough proof that their salary increase is legal.

“The compensation of local officials and personnel is determined by the Sanggunian concerned provided that the increase in compensation of elective local officials shall take effect only after the terms of office of those approving such increase have expired,” Section 81 of the code states.

“The said increases shall not exceed the limitation on budgetary allocations for personal services,” the section states further.

Memorandum

An audit observation memorandum issued by the city auditor last Sept. 8 showed that Seno and the city councilors “continued receiving the overpaid amounts of their salary, which in effect accumulated an overpayment of P3,126,993.59.”

The City Auditor’s Office recommended that such overpayment must be stopped and that the overpaid amounts refunded.

The City was also told to follow the exceptions stated in the yearly budget review “to ensure that disbursement of funds, particularly the payment of salaries, are within the allowable rates.”

(September 16, 2003 issue)

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