COA orders 28 gov’t firms to return P626M in illegal allowances

MANILA, Philippines – The Commission on Audit (COA) has ordered 28 government-owned or controlled corporations (GOCCs) to return unauthorized cash allowances and incentives amounting to P626.119 million.

In its 2014 annual financial report on GOCCs released on October 31, the audit agency said the 28 GOCCs should “discontinue the payments of compensation, allowances, benefits, and incentives of Boards of Trustees, Boards of Directors, officers, and employees that have no legal basis.”

Topping the list of GOCCs with the biggest amount of unauthorized allowances was the Philippine Economic Zone Authority (PEZA).

State auditors said PEZA released a total of P213.84 million for bonuses and benefits: P165.25 million for salaries and benefits; P27.06 million for unauthorized increase of Christmas bonuses ranging from P50,000 to P75,000; and P21.52 million in anniversary bonuses.

Duty Free Philippines Corporation (DFPC) ranked second in the list, incurring P154.926 million in disallowances for the 14th month pay it disbursed to employees in 2013 and 2014.

COA said it had ordered the disallowance of 14th month bonuses amounting to P141.272 million paid out between 2003 to 2013. But DFPC managed to secure a temporary restraining order from the Supreme Court to stop the implementation of the disallowance.

Ranking 3rd was the Metro Cebu Water District (Metro Cebu WD) with P108.26 million in unlawful allowances and bonuses.

The amount includes corporate performance incentive bonuses amounting to P70.75 million; P12.83 million in rice and housing allowances; P8.73 million in medical expense reimbursements; P5.022 million in school opening bonuses; and P4.83 million in utility allowances.

In 2013, COA also questioned Metro Cebu WD’s disbursements amounting to P86.15 million.

Also included in COA’s list for 2014 was Bangko Sentral ng Pilipinas (BSP), which paid anniversary and Christmas cash gifts to outsourced, non-BSP personnel totaling P23.156 million.

The other GOCCs included in COA’s list are:

• Philippine Postal Corporation (PPC) – P30.644 million
• Bangko Sentral ng Pilipinas (BSP) – P30.103 million
• National Power Corporation (NPC) – P22.878 million
• National Electrification Administration (NEA) – P20.625 million
• Human Settlements Development Corporation (HSDC) – P15.203 million
• Cagayan de Oro City Water District (CdO WD) – P8.175 million
• PNOC Alternative Fuels Corporation (PAFC) – P3.329 million
• Metro Kidapawan Water District – P3.28 million
• National Transmission Corp. (Transco) – P2.97 million
• Butuan City Water District – P2.638 million
• Development Bank of the Philippines Data Center Inc. (DBP-DCI) – P1.984 million
• Malaybalay Water District – P1.776 million
• Food Terminal Inc. (FTI) – P1.169 million
• Sibulan Water District – P1.095 million
• Borongan Water District – P675,000
• Industrial Guarantee and Loan Fund (IGLF) – P604,000
• Metropolitan Waterworks and Sewerage System (MWSS) – P540,000
• Dumaguete City Water District – P480,000
• People’s Credit and Finance Corporation (PCFC) – P368,000
• Baguio City Water District – P275,000
• Philippine National Railways (PNR) – P189,000
• Philippine Center on Economic Development (PCED) – P42,000
• Metro Bangued Water District – P30,000
• Tagoloan Water District – P25,000
• International Broadcasting Corp. 13 (IBC-13) – not quantified

– Rappler.com