Return bonuses, gov’t execs toldCOA issues order to 31 GOCCs
By Cynthia D. Balana
Philippine Daily Inquirer
The Commission on Audit has ordered Officials and employees of 31 government-owned and -controlled corporations to refund the government all bonuses and allowances totaling P2.313 billion whose payment in 2012 was deemed unauthorized.
Officials and employees of 31 government-owned and -controlled corporations (GOCCs) have been ordered to refund the government all bonuses and allowances totaling P2.313 billion whose payment in 2012 was deemed unauthorized by the Commission on Audit (COA).
In its 2012 annual financial report on GOCCs, which was posted on its website recently, the COA named the top 10 GOCCs and the corresponding amounts to be returned:
1. Philippine Health Insurance Corp. (PhilHealth), P1,651,084,000
2. Development Bank of the Philippines (DBP), P216,801,000
3. Region 7 water districts, P186,584,000
4. Philippine Charity Sweepstakes Office, P54,829,000
5. Philippine Economic Zone Authority, P48,500,000
6. Home Development Mutual Fund, P37,636,000
7. Butuan City Water District, P28,243,000
8. Development Academy of the Philippines, P23,838,000
9. Philippine National Oil Co. Exploration Corp., P14,518,000
10. Mactan-Cebu International Airport Authority, P14,406,000.
The COA report also admonished the following GOCCs for doing the same: Bases Conversion and Development Authority, Batangas Land Co. Inc., Civil Aviation Authority of the Philippines, Clark International Airport Corp., Human Settlements Development Corp., Lung Center of the Philippines, Manila Gas Corp., National Dairy Authority, National Development Co. (NDC), NDC-Phil. Infrastructure Corp., Overseas Workers Welfare Administration;
Philippine International Convention Center Inc., Philippine National Oil Co. (PNOC), PNOC-Development and Management Corp., PNOC-Alternative Fuel Corp., Southern Utility Management and Services Inc., Trade Investment Development Corp. of the Philippines, Tourism Infrastructure and Enterprise Zone Authority, Veterans Federation of the Philippines and Madrid Water District.
Without legal basis
According to the COA, these 31 GOCCs were found to have paid “bonus(es), allowances and benefits to the board of directors and employees without or in excess of legal basis or proper authority.”
In October last year, the COA ruled that unauthorized allowances, bonuses and other financial rewards totaling more than P1.447 billion were given to PhilHealth officials and employees in 2012.
It said the release of such incentives had no approval from the Office of the President and had no legal basis.
DBP’s excess payments
Disallowed pay given to DBP officials and employees came in the form of “performance incentive bonus” that went in excess of what it was authorized by the Governance Commission for GOCCs.
DBP had a total of 2,537 employees at the central office, 96 branches nationwide and four subsidiaries, the COA said.
Of the P216.8 million, DBP officials gave themselves P91.96 million while the rest of the amount was distributed to employees in the home office and branches.
The COA said DBP’s personal services expenditures in 2012 reached P2.501 billion, exceeding its authorized allocation by P224.228 million.
It also ordered the GOCCs to immediately discontinue the practice and “refund the excess compensation/allowances received.”
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