THE Commission on Audit has asked the Ombudsman to launch a probe against former officials of the Department of Agrarian Reform-Regional Office 5 (Bicol) for charging P4.05 million in cash perks against funds intended exclusively for land reform.
In a six-page decision released last week, the COA Commission Proper denied the petition for review filed by persons held liable under a Notice of Disallowance (ND) issued on June 20, 2013 for lack of merit.
The ruling affirmed the disallowance and instructed the Prosecution and Litigation Office to refer records of the audit to the Ombudsman “for filing of appropriate charges, if warranted,” citing violations of Executive Order No. 229 and RA 6657 or the Comprehensive Agrarian Reform Law of 1988.
Auditors found that DAR-Region 5 officials paid themselves extra compensation in the form of Collective Negotiation Agreement incentives, Health Care Maintenance, and performance incentives charged against Fund 158 or the Comprehensive Agrarian Reform Program (CARP) Fund.
The ND cited the August 31, 2011 memorandum of former COA chairperson Maria Gracia Pulido-Tan disallowing all payments of DAR personnel benefits out of the CARP Fund.
Held liable were former regional director Maria Celestina Manlangit-Tam, acting director for administration Leo Miguel Ramos, accountant officer-in-charge Doris Ani, and various employees of DAR-RO5 who received sums from the disallowed transaction.
While the appealing DAR officers argued that Fund 158 is a valid source of their extra pay, the COA National Government Sector cluster director insisted that the program funds exist solely for its original intended purpose, which was the implementation of the CARP.
“It has been consistently ruled that payment of CNA and other employee benefits charged to Fund 158 is deemed highly irregular and therefore, should be disallowed in audit as the same contravenes EO No. 229 and RA No. 6657,” the cluster director said.
In shooting down the appeal, the COA Commission Proper stressed that the CARP Fund is exclusively intended for the welfare of landless farmers and farm workers to promote social justice.
“In this case, the payment of CNA incentives was not in pursuance of said purposes. The payments pertaining to employee benefits, …are not among the intents and purposes …for which the CARP Fund was created. Hence, said payments are deemed irregular and are proper subjects of a disallowance,” the commission added.