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Monday, October 18, 2004
Mandaue officials told: Take pay cut
By Aledel Gonzales-Cuizon
CEBU CITY -- Since 1999, Vice Mayor Amadeo Seno Jr. and his fellow officials in the Mandaue City Council have been receiving salaries higher than what is recommended.
From January 1999 to June 2004, overpayments have reached P4.2 million. Monthly salary overpayments ranged from P3,826 to P3,979 in 1999.
Because of this, the Commission on Audit (COA) recommended in an audit observation memorandum (AOM) that the granting of salaries over the allowed rates must be stopped.
The memorandum, signed by state auditor Carolina Mendez and regional cluster auditor Helen Hilayo, also required a refund of the officials' overpaid salaries.
Last year, COA issued the same AOM about the overpayment of salaries.
The city officials, for their part, found it "unfortunate" that COA continues to issue the audit observation memorandum.
Seno and the city officials wrote COA to point out that the basis of the adjustment that the City Council of 1995 used for the increase in salaries was Section 81 of the Local Government Code.
It states that the local council will determine the compensation of local officials as long as the increase takes effect after the terms of those who approved it.
It further states that the increase should not exceed the budgetary allocations for personnel services.
According to COA, the Mandaue City officials received salaries and benefits based on the rates of salary grade 27, step 8 instead of the allowed rate of salary grade 27, step 1.
Seno received some P25,059 monthly instead of P21,090.
The councilors received some P24,105 instead of P20, 279.
From January to June 2004, monthly salary overpayments reached some P4,420 to P4,596.
For the first six months this year, Seno received some P28,995 instead of P24,359. The councilors received some P27,842 instead of P23,422.
Increments
The recent AOM said the excess payment was a result of a grant of step increments stated in the Rules and Regulations Governing the Grant of Step Increments to Deserving Officials.
These rules and regulations apply to officials and employees in local and national government, including those in government-owned-and-controlled corporations, state universities and colleges, judiciary and legislature, "who are appointed on a permanent status in the career service."
But the officials, in response, pointed out that their compensation is allowed for as long as it is based on Republic Act 6758, or the Compensation and Position Classification Act of 1989.
"Clearly, unmistakably and unequivocally, the Local Government Code of 1991 grants specific powers and authority to the Sanggunian to increase the minimum salaries of its elected local officials subject to the compliance of the conditions stipulated therein," the four-page reply of Seno and the city councilors said.
They further said the Sanggunian could increase the salary grade within the salary range.
"RA 7160 and its Implementing Rules and Regulations particularly has modified, amended or superseded whatever issuances, circulars or memorandums issued concerning the compensation of all local elective officials," they further said.
(October 18, 2004 issue)
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