THE Commission on Audit has required officials and employees of six government-owned or controlled corporations (GOCCs) to refund P236.21 million in bonuses, allowances, and incentives paid without legal bases.
Topping the COA’s list was the Home Development Mutual Fund (HDMF or Pag-IBIG Fund) with P203.352 million paid out as cash benefit to 3,714 employees under the Program on Awards and Incentives for Service Excellence (PRAISE).
Auditors said only a few Pag-IBIG personnel should have qualified for the P55,000 PRAISE cash grant since this was intended as a reward to individuals or a group with suggestions, inventions, or superior accomplishments, and not as a collective benefit for the entire workforce of an agency.
The audit team has notified Pag-IBIG Fund to stop the practice of paying PRAISE to all employees and warned that notices of disallowance may be issued “if circumstances warrant.”
Pag-IBIG officials insisted the cash reward underwent review and was allowed by the Civil Service Commission and was given to “all Pag-IBIG officers and employees for their collective contributions to the Fund’s outstanding performance.”
Other government firms in the COA’s list were the Food Terminal Inc. (FTI) with P10.56 million in questioned medical benefits, mid-year bonus and salary increases; the Small Business Guarantee and Finance Corporation (SB Corp) with P10.15 million in excess extraordinary and miscellaneous expenses (EME) paid to the firm’s 25 top executives dating back to 2018; the National Electrification Administration (NEA) with P5.724 million also for PRAISE; the International Broadcasting Corporation (IBC-13) with P3.425 million; and the Center for International Trade Exposition and Missions (CITEM) with P3 million.
The list was contained in the 738-page 2021 Annual Financial Report (AFR) released by the COA last October 7. A copy of the report has been accessible to the public and may be downloaded from COA’s official website.
Also required to refund was the Philippine Ports Authority (PPA) whose payment of P199.94 million for the COVID-19 testing for returning Filipino seafarers was beyond the disbursement period of June 30, 2021 of RA 11519 or the Bayanihan to Recover as One Act and Department of Budget and Management National Budget Circular No. 585.
“Payments totaling P199.943 million out of the DOTr (Department of Transportation) Fund for COVID-19 testing… were made beyond the prescribed disbursement period… hence payment was unauthorized and irregular,” the COA said.
