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Thursday, August 16, 2007
P15 million cash-out ‘unauthorized’
CEBU CITY -- Unauthorized benefits to officials and employees in 2006 prompted the Commission on Audit (COA) to call the attention of Cebu’s port and airport authorities.
At least one agency was asked to refund close to P1 million released as performance bonuses.
Arroyo Watch: Sun.Star blog on President Arroyo
In its report for 2006, COA said that the Mactan Cebu International Airport Authority (MCIAA) disbursed P13.65 million for cash dividends to all its directors, other officials and employees, including a legal consultant, without any legal basis.
There was no approved budget for the grant, the COA added.
Among the members of the MCIAA board are general manager Danilo Augusto Francia, Cebu Governor Gwendolyn Garcia, Valeriano Avila, Renato Osmeña, Dondi Joseph, and Department of Tourism 7 Director Patria Aurora Roa.
The COA noted that the dividends were charged against the Corporate Performance Incentive Account, for which there was no approved budget.
“These disbursements were made without legal basis,” read the COA report.
Auditors recommended that the management seek the approval of the Office of the President or the Department of Budget and Management for these expenses.
MCIAA informed COA that they requested the Office of the President’s approval, but this was referred to the DBM for comment. They’re still waiting for a reply.
MCIAA General Manager Danilo Augusto Francia informed Sun.Star Cebu in a text message that he has not read the COA report yet and declined to comment.
Refund, please
COA also discovered that the CPA paid unauthorized benefits of P1.54 million to CPA officials and employees in 2006. These include a performance bonus and Christmas groceries.
The COA also required the CPA management to immediately refund P985,400 out of the P4.86 million it paid to its officials and employees, as yearend benefits and gift checks.
Republic Act 8441 authorizes the grant of a Christmas bonus (one month’s basic salary) and additional cash gift of P5,000 to all officials and employees of the National Government who have rendered at least four months of service from Jan. 1 to October 31.
However, the additional yearend benefits to CPA officials and employees exceeded what RA 8441 allows.
COA noted, however, that the benefits were paid by virtue of a decision the Cebu Regional Trial Court Branch 5 issued on a petition filed by some CPA employees.
Court order
The court had ordered the CPA “to immediately release to the petitioners, their co-employees and/or officers, their traditional one month mid-year and two-months’ yearend benefits, including gift checks at P10,000, to each employee and/or officer, for the years 2003 and 2004, and to continue every year thereafter.”
The court also ordered the release of withheld benefits of those who have already retired or have been separated from the service.
At least 15 percent of the benefits were supposed to be retained for attorney’s fees.
The COA, however noted that based on the court order, the two-month yearend benefits and P10,000 gift check paid can be considered extra gifts, so no additional performance bonus should have been allowed.
“We require the management to make an immediate refund of the P985,400 performance bonus,” the report said.
CPA General Manager Angelo Verdan said that the COA disallowance is not final and can still be appealed before the Supreme Court. (EOB of Sun.Star Cebu)
For more Philippine news, visit Sun.Star Dumaguete. (August 16, 2007 issue)
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