Saturday, August 18, 2007 Bogo spent P36.2M for personnel services, 28 percent higher than allowed
IN ITS last year as a town, Bogo spent P8.2 million more than the allowed limit for personnel services, including P4.5 million in extra cash gifts for officials and employees.
Bogo was only allowed to spend up to P28.2 million or 45 percent of its total annual income.
However, its actual expenses for personnel totaled P36.2 million or 28 percent beyond the allowable expenses.
Section 325 of Republic Act 7160 or the Local Government Code states that the total appropriations for personnel (identified as personal services) in one year should not go beyond 45 percent for first- to third-class provinces, cities and municipalities; and 55 percent of the total annual income for fourth-class or lower.
Under COA rules, the personal service account of local governments covers basic pay, allowances, bonuses, cash gifts, incentives and benefits of government employees and officers.
Bogo’s personnel appropriation in 2006 exceeded its limit by P16.5 million, the COA said.
Its audit report for Bogo revealed that in its annual budget, the town appropriated P32.5 million for personnel services, which was 15 percent more than the allowable amount.
It later passed three supplemental appropriations amounting to P12.2 million, bringing the total excess in appropriations to 58 percent.
COA discovered that it granted extra cash gifts of P20,000 each for regular employees and P5,000 each for casual employees, for a total of P2.75 million.
It also granted additional benefits equivalent to one month’s salary for regular employees, while casuals received P3,750 to P4,950 each, for a total of P1.78 million.
Bogo was among the towns last year that spent more than the limits for personnel services, but still gave out extra cash gifts. (It became a city this year.)
The other towns that committed the same violation are Poro, Pilar, Malabuyoc, Catmon, Tudela, Carmen and Liloan.
Lawyer’s fees
Meanwhile, the COA has also ordered the officials of Madridejos and Bantayan towns, both of Bantayan Island, to refund the money released to pay for the services of lawyer Nathaniel Clarus.
Audit rules and the Local Government Code prohibit municipalities from hiring private lawyers to handle cases of the town or to discharge the functions of a municipal legal officer.
Madridejos paid P136,800 and P106,800 to Clarus for 2005 and 2006, respectively.
Bantayan, meanwhile, disbursed P128,000 as payment for Clarus’ legal services.
Government auditors said that if a town has no legal officer, it can tap the services of the provincial legal officer.
The provincial legal officer is disqualified from acting as a municipality’s legal officer only in cases where a component city or municipality is the party adverse to the Provincial Government, or to another component city or municipality.
COA is recommending that the hiring of a private lawyer to handle the municipalities’ legal cases be stopped.
The amount paid for unauthorized legal services is considered a personal liability of the official who authorized the payment. (MBG)
