THE Commission on Audit has denied the petition for review filed by the Philippine Health Insurance Corporation (PhilHealth) – Regional Office No. 8 that sought the lifting of the disallowance issued against the P7.69 million educational assistance allowance (EAA) paid to officials and employees in 2015.
In its five-page decision released Friday (July 15), the COA Commission Proper affirmed the notice of disallowance (ND) issued on December 21, 2015 and its finding that the EAA lacked legal basis.
Held liable under ND-2015-003 were former PhilHealth president and chief executive officer Alef Pxander Padilla, PhilHealth-RO8 regional vice president Walter Bacareza, fiscal controller Archimedes Villasin, attorney IV Anita Lourdes Oriel, fiscal examiner Benjamin Gabrieles Jr., human resource management officer Emmanuel Montilla, and employees of the regional office.
The COA Corporate Governance Sector (CGS) Cluster 6 held that RA 7875, the law that created PhilHealth, provided no exemption from administrative issuances or gave its Board of Directors absolute power to fix the compensation of its officials and employees.
It noted that even after approving a compensation package, the PhilHealth board still needs to secure the approval of the Department of Budget and Management (DBM) and the Office of the President (OP).
“Failure to obtain such approval renders the grant thereof without legal basis,” the COA-CGS said.
In its appeal, the PhilHealth-RO8 invoked the agency’s fiscal autonomy and claimed that former president Gloria Macapagal-Arroyo had twice before upheld this in her letters dated September 18, 2006 and March 7, 2008.
It added that PhilHealth’s fiscal autonomy prevails over administrative acts, orders or regulations and that the PhilHealth personnel received the allowances in good faith.
The COA Commission Proper was not convinced.
“The CD (cluster director) correctly ruled that notwithstanding the provisions of the PhilHealth Charter granting authority to the governing board to fix the compensation of its personnel, PhilHealth is duty bound to observe guidelines and policies laid down by existing compensation laws,” it said.
Likewise, the commission ordered its Prosecution and Litigation Office to forward all audit records on the PhilHealth educational allowances to the Office of the Ombudsman for further investigation and determination if there is basis to file criminal charges against approving and certifying officers.
All officials held liable were ordered to refund the entire disallowed sum.
