THE Commission on Audit has ordered the former general manager of the Baguio Water District (BWD) and members of the Board of Directors (BOD) to refund the P4 million in cash gifts that were given to agency personnel in 2010 equivalent to 150 percent of their salaries.
This as the COA denied the petition for review filed by the BWD executives, led by former manager Teresita de Guzman, seeking to lift the notice of disallowance issued against the payment of cash gifts worth P4,097,623.50.
Other than de Guzman, also held liable by the COA were internal auditor Godiula Guinto, Administrative Division manager Viveca Villafuerte, senior accountant Wilhelmina Aquino and all BWD officials and employees who received the extra pay.
The COA Commission Proper held that the payout violated the provisions of RA 6686 or the Christmas Bonus Act and Department of Budget and Management Circular no. 2010-1 limiting the grant of cash gift to a fixed amount of only P5,000.
In their petition, De Guzman and the BOD invoked exemption from the General Appropriations Act and argued that the disallowed cash gift was included in its approved operating budget.
The COA however shot down the exemption claim, noting that even if the GAA is deemed inapplicable, the authority of the BWD’s Board of Directors to grant cash gift remains subordinate to compensation laws.
Likewise, the COA rejected the claim of good faith since the pertinent prohibitions were already in place before the cash was given away.
“The obligation to refund the payment falls upon both those directly responsible, i.e., the approving/certifying officers and those who actually received the disallowed benefit,” the COA said.
