THERE can be no diminution of benefits when the recipients are not entitled to it in the first place.
This was pointed out by the Commission on Audit to the National Food Authority (NFA) as it affirmed the notices of disallowance (NDs) issued against the payout of “food and grocery incentives (FGI)” to its regional and provincial personnel.
In separate decisions, the COA denied petitions for review filed by NFA Regional Office 6 and NFA-Oriental Mindoro Provincial Office (OMPO) asking for the lifting of NDs and the requirement for their officials and employees to refund the cash incentives.
Auditors said the NFA-RO 6 paid FGI amounting to P685,000 in 2010 and P690,000 in 2011 or a total of P1.375 million.
On the other hand, NFA-OMPO disbursed P820,000 for the same incentive in 2008.
In both instances, the COA said the NFA failed to secure the prior recommendation of the Department of Budget and Management (DBM) and the approval of the Office of the President.
In their appeals, NFA-RO 6 and NFA-OMPO argued that former President Gloria Macapagal-Arroyo, through former Cabinet Secretary Ricardo Saludo, had allowed the payout of Christmas and year end bonuses to government-owned or controlled corporations (GOCCs) and government financial institutions (GFIs) in 2003. They said the bonuses were on top of regular Christmas and 13th month pay given to government employees.
The COA, however, said the argument is misleading since the supposed imprimatur of Arroyo had actually instructed the heads of GOCCs and GFIs “to moderate the granting of Christmas/Year-end bonuses to their employees which were extremely high compared to those given to national government employees.”
At the same time, the commission said the payment of disallowed cash incentives was barred by RA No. 6758 which enumerated the allowances and stipends that were not deemed included in the standardized salaries of national government personnel.
“In the absence of a valid authority specifically granting the subject allowance, the distribution and payment of FGI shall remain disallowed,” it pointed out.
“The disallowance would not upset the principle of non-diminution of benefits. Article 2254 of the Civil Code of the Philippines declares that no vested or acquired right can arise from acts or omissions which are against the law,” the COA added.
