THE Mandaue City Government will have to justify the P11.5 million Charter Day bonus and year-end P29 million cash incentives it gave to officials and employees in 2023, as state auditors have issued a notice of suspension for lacking a legal basis.
City Administrator Jamaal James Calipayan told reporters on Monday, Aug. 12, 2024, that the administration had already started the process of compiling the required documentation to prove the legality of the release of the public funds.
More than 1,000 regular employees received the Charter Day bonus and year-end incentives.
The Commission on Audit (COA), in its notice dated Aug. 5, 2024, questioned the legal basis of the incentives distributed to city officials and employees under City Ordinances 1924-2023 (Charter Day bonus) and 16-2023-1842 (year-end incentives).
The City released a total of P11,580,000 in bonuses for the Charter Day, which is celebrated every Aug. 30.
Passed last December, the ordinance allocated P29,253,179.20 for year-endcash incentives.
State auditors have given the City Government 90 days to submit its explanation.
Calipayan said they received the COA reports last week, and they will address the suspension.
“We aim to prevent the issuance of a notice of disallowance, as this would result in the recipients of the bonuses being required to refund the disallowed amount,” Calipayan said in Cebuano.
“If it’s disallowed, we can still appeal until there’s a final decision from the Supreme Court or other relevant authorities,” he added.
According to COA, the release of cash incentives lacked proper legal documentation.
The notice of suspension pointed out the roles of several city officials, including the city mayor, city accountant and members of the City Council who were involved in approving and certifying the payment of the cash incentives.
One of the city employees who received the incentives, speaking on condition of anonymity, expressed concern over the potential repercussions if the disbursements are deemed unauthorized. / CAV