COA finds payroll irregularities in housing agency

MANILA, Philippines – The Commission on Audit (COA) has found irregularities in the allowances and benefits paid to employees of housing agency Social Housing Finance Corporation (SHFC).

SHFC, a wholly-owned subsidiary of the National Home Mortgage Finance Corporation, is one of 6 housing agencies under the Housing and Urban Development Coordinating Council (HUDCC), which used to be chaired by Vice President Jejomar Binay. 

In a report released on July 7, auditors noted that the SHFC paid higher allowances and subsidies to its personnel in 2014, resulting in its exceeding its corporate operating budget by P10.85 million.

However, the Department of Budget and Management (DBM) only approved a budget of P187.785 million for the salaries, allowances, and benefits of SHFC personnel.

The SHFC board reportedly increased the grocery subsidy of its 202 employees, bumping it up from P50,000 to P70,000. Meanwhile, probationary and agency-hired personnel also received extra pay, ranging from P12,750 to P14,500.

For grocery subsidies, the SHFC exceeded its approved budget by a total of P5.81 million. The agency also increased the “rice allowances” for 214 employees, resulting in a budget excess of P4,028,400.

For the 13th month pay, the SHFC spent an additional P1,015,000 for 198 regular employees who received an extra P5,000, while P2,500 were paid for 10 employees who were probationary, on leave, or have resigned.

COA also questioned the payment of P9.35 million to top SHFC executives, which was listed as “discretionary expenses (DE)” and “business development expenses (BDE).”

The audit agency said the payments were illegal as they have no DBM-approved budget.

Auditors also said that SHFC was only allocated P741,600 for its 2014 miscellaneous expenses, but spent P2,301,612.50 as DE and P7,790,646.20 as BDE.

COA required the housing agency to refund the money released for unauthorized expenses and to strictly adhere to the DBM-approved budget.

The audit agency also reminded SHFC that funds released in excess of the budget “constitute irregular expenses.”

Responding to the audit findings, the SHFC management asked for time to appeal the disallowances issued by COA on the unauthorized expenses.

Senator Aquilino Pimentel III earlier called on COA to look into the performance of the HUDCC after Binay’s resignation from the Cabinet. Binay is the subject of a months-long Senate probe into allegations of corruption, which Pimentel has headed. – Rappler.com

Payroll slip on pile of US dollar banknotes from Shutterstock