COA lifts disallowance on CAAP’s P192-M achievement bonuses

MANILA, Philippines – The Commission on Audit has lifted the Notices of Disallowance that it had issued against the Civil Aviation Authority of the Philippines (CAAP) on its unauthorized payment of P192.19 million in achievement bonuses in 2014.

Voting 2-1, the COA en banc granted the appeal of CAAP, and reversed its January 24, 2022 decision that had affirmed the NDs.

COA chairperson Gamaliel Cordoba and Commissioner Mario Lipana voted in favor of lifting the disallowance while Commissioner Roland Café Pondoc dissented.

COA cited the April 29, 2016 memorandum issued by then-Executive Secretary Paquito Ochoa Jr., which addressed the main reason for the disallowance.

“The payment of Achievement Bonus for 2014 was disallowed principally on the ground that it was granted without authority. In this case, since the Executive Secretary issued a post facto approval, the defect of the absence of authority to grant the Achievement Bonus is cured,” the COA said.

In his dissent, Pondoc cited the 2022 Supreme Court ruling on the Philippine Charity Sweepstakes Office petition against COA, that a letter from Ochoa supposedly granting post facto approval cannot be accorded validity as it sanctions benefits that violate budgetary and auditing laws.

Pondoc also said that such post facto approval by the Office of the President would be a violation of Section 261 (g) (2), Article XXII of the Omnibus Election Code since Ochoa’s memorandum was issued nine days before the May 9, 2016 elections.

The COA Commission Proper had earlier declared the bonus as an “irregular expenditure” as it was not in the agency’s corporate operating budget. It also earlier sustained the stand of the audit team that CAAP’s fiscal autonomy and the board’s authority to set the compensation and benefits are not sufficient legal bases to grant the extra bonus because of the lack of prior approval from the Office of the President.

The COA had also said at the time that since the bonus was released in mid-2014, it could not have been sourced from CAAP’s supposed savings since the latter could not be declared until the end of the fiscal year. – Rappler.com