COA orders PhilHealth to return P63M unlawful cash bonuses

MANILA, Philippines – The Commission on Audit (COA) ordered the Philippine Health Insurance Corporation (PhilHealth) to return unlawful cash bonuses released to its officials and employees in 2011.

In a decision released on Friday, April 1, the COA Commission Proper said that the notices of disallowance issued in April 2013 and affirmed on August 2014 by the COA-Corporate Government Sector are “final and executory.”

Though previous releases had already been disallowed, a cash stipend amounting to at least P63.57 million ($1.4 million) was still distributed as “productivity incentive bonuses.”

The bonuses, state auditors noted, have no legal basis as there was no prior clearance from the Department of Budget and Management (DBM) and the Office of the President. 

COA Chairperson Michael Aguinaldo and Commissioner Jose Fabia added that PhilHealth filed a petition for review – through its president and chief executive officer Alexander Padilla – past the allowed period for appeal.

“Based on jurisdictional facts, it is evident that the petitioner had already exhausted the reglementary period of 6 months or 180 days to file a petition,” the COA Commission Proper stated. “Thus, the assailed decision became final and executory.”

In 2014, the COA Commission Proper also upheld the disallowance on bonuses, allowances, and reimbursement of PhilHealth officials and employees released in 2003 and 2004.

The stipend, amounting to P87.79 million ($1.9 million), was sourced from PhilHealth funds intended for contributors’ health care benefits. It was deemed both “illegal and unreasonable.” – Rappler.com 

$1 = P46

Philippine bank notes photo from Shutterstock