BY PETER J. G. TABINGO
THE Commission on Audit has affirmed the 2017 decision of the COA Regional Office 6 that upheld the issuance of notices of disallowance (NDs) against cash incentives paid to officials and employees of the National Irrigation Administration (NIA) in 2009 to 2011.
In its ruling, the COA Commission Proper held that the collective negotiation agreement (CNA) incentives totaling P5.56 million paid to NIA-Region 6 violated guidelines set by the Department of Budget and Management.
Held liable were former administrator Antonio Nangel, regional director Gerardo Corsiga, chief accountant Mary Ann Gadong, financial planning specialist Winston Garsulao, administrative services officer Nick Jaranilla, division managers Eliseo Carreon and Samuel Japitana, and employees of NIA-Region 6.
“The payment of the CNA incentives …did not adhere to the requirements of Public Sector Labor-Management Council (PSLMC) Resolution No. 2, series of 2003, DBM Budget Circular No. 2006-1 dated Feb. 1, 2006 and DBM BC No. 2011-5 dated Dec. 26, 20,” the COA said.
Auditors said the CNA between the agency ma nagement and the workers’ union should have identified provisions on improvement of income and productivity, streamlining of systems and procedures and cost cutting measures that will be undertaken.
In 2011, the audit team found that the total CNA paid to each personnel amounted to P42,000 each which was way bigger that the P25,000 per qualified employee allowed under DBM Budget Circular No. 2011-5.
Likewise, the COA questioned the early release of CNA contrary to Section 3.5 of the same DBM Circular which mandated payment of the incentive only at year-end.
“Clearly, NIA failed to comply with the conditions …thus, the payments of CNA incentives are considered irregular expenditures,” the COA said.
