COA orders water officials to refund millions in meal, hospital allowances

MANILA, Philippines – The Commission on Audit affirmed notices of disallowances against the Local Water Utilities Administration (LWUA) and ordered officials to refund millions worth of meal and hospitalization allowances given to employees from 2012 to 2014.

LWUA was found to have allowed illegal perks amounting to P74.558 million. The COA is asking for a refund, but excludes the employees who did not have any participation in approving the illegal release of the allowances.

“The approving officers and each employee who received the disallowed benefit are obligated, jointly and severally, to refund the amount so received. Government employees who unwittingly received disallowed benefits or allowances are not liable for their reimbursement if there is no finding of bad faith,” the COA said.

Three separate decisions were issued on October 25 by the COA Commission Proper which junked the petitions for review filed by LWUA officials.

According to COA, meals and hospital benefits for government employees are already included in the standardized salary.

Yet the employees were given P200 per day starting 2009 for meals.

The LWUA said that meal allowances have been part of their perks since 1980 when it was just P3 per day, and so were hospitalization benefits. LWUA officials further defended their hospitalization benefits as being part of their audits in the previous years.

COA chairman Michael Aguinaldo and Commissioners Jose Fabia and Isabel Agito declared their petitions for review “devoid of merit.”

“This Commission finds no cogent reason to overturn CGS-Cluster 3 Decision(s) affirming the NDs. Lack of prior Presidential approval renders the increase in the subject benefits irregular as they were granted without legal basis,” the COA said.

LWUA officials also appealed to the Commission not to violate the principle of non-diminution of pay. But the COA maintained that the government has the right to correct misapplication of rules.

“The law must be enforced even if it prejudices certain parties due to an error committed by public officials,” the Commission said.

The first 2 petitions for review were filed by former LWUA administrator Eduardo C. Santos, Treasury Division acting manager Ma. Sylvia L. Senatin, Area Operations acting deputy administrator Nestor G. Evangelista, Human Resources Development Division acting manager Armando F. Sibal, Property Management Department acting manager Jacinto L. Lagsit, senior deputy administrator Edgardo C. Demayo, and General Services Division acting manager Nanette C. Samaniego.

The 3rd petition was filed by former administrator Andres F. Ibarra; acting deputy administrators Redentor C. Talavera and Edison A. Cuenca, and Alfredo G. Bayani; Officer-in-Charge, Area Operations-Mindanao Nestor G. Evangelista; board secretary Rodel G. Franco; Human Resource Management Department acting manager Agnes G. Francisco; Accounting Department acting managers Divina D. Ferrer and Ditas P. Icalina; Budget Division officer-in-charge Susan G. Villocillo; Personnel Division acting manager Nelissa M. Limbo; Demayo, and Senatin. – Rappler.com