COA: 8 GOCCs, 55 water districts released P727M questionable allowances

MANILA, Philippines – A Commision on Audit special report showed that 8 government-owned or controlled corporations (GOCCs) and 55 water districts (WDs) allegedly released P727.71 million in unauthorized compensation to their personnel in 2015.

According to the 2015 Annual Financial Report on GOCCs released on October 24, the Philippine Charity Sweepstakes Office (PCSO) topped the list, as it released P429.82 million in  questionable compensation to its officials and employees.

The other GOCCs cited in the report are the following:

• Philippine Deposit Insurance Corp. (PDIC) – P98.71 million
• National Food Authority (NFA) – P59.286 million
• Land Bank of the Philippines – P38.509 million
• Food Terminal Inc. (FTI) – P8.073 million
• Power Sector Assets and Liabilities Management Corp. (PSALM) – P4.688 million
• National Tobacco Administration (NTA) – P2.012 million
• DBP Data Center Inc. (DCI) – P1.708 million

While the Philippine Economic Zone Authority (PEZA) and the Development Bank of the Philippines (DBP) were also on the list, the amounts attributed to them were deemed as “not quantifiable.”

Of the 55 WDs cited in the report, the top 10 that released the biggest questionable amounts to their employees are the following: 

• Baguio Water District – P35.166 million
• Cagayan de Oro City WD – P11.95 million
• Pagadian WD – P4.323 million
• Orani WD – P4.005 million
• Baliwag WD – P2.853 million
• Bugallon WD – P2.497 million
• Butuan City WD – P2.479 million
• Legazpi City WD – P2.362 million
• Binmaley WD – P1.954 million
• Sagay WD – P1.948 million

According to COA, the GOCCs paid out a total of P639.806 million in questionable allowances and bonuses; the total for the water districts was P87.901 million. 

The recipients included members of the Board of Trustees, Board of Directors, officers, employees, management committees, and contractual employees.

The COA said the sums were paid out as additional compensation (adcom), extra personnel economic relief allowance (PERA, other allowances, benefits and incentives.

“Payment of adcom, PERA and other allowances or benefits…were without bases contrary to existing laws, rules and regulations,” it said.

The COA ordered the GOCCs and WDs to “discontinue the payment of compensation, allowances, benefits and incentives in the absence of legal basis or authority to grant the same.”

The GOCCs and WDs were also required to submit documents to prove they secured  prior approval of the Office of the President or the Governance Commission for GOCCs for the release of the sums in question.

Copies of the report were earlier submitted to President Rodrigo Duterte, Senate President Aquilino Pimentel III, and Speaker Pantaleon Alvarez. – Rappler.com