OFFICIALS and employees of the Philippine Health Insurance Corporation— Regional Office No. 6 who received extra allowances and benefits totaling P5,010,607.83 in 2011 and 2012 are all liable under 20 notices of disallowance (NDs) issued by the Commission on Audit.
In a decision released yesterday, the COA Commission on Proper denied the motion for reconsideration filed by PhilHealth Region 6 asking it to set aside the NDs.
Appellants asserted that the governing boards of government corporations have the authority to set their operating budgets based on an opinion issued on March 31, 2004 by the Office of the Government Corporate Counsel (OGCC).
They also invoked the 2018 Supreme Court ruling in PhilHealth vs. COA that supposedly absolved officers and employees from refunding amounts they have already received.
COA Chair Michael G. Aguinaldo and Commissioner Roland C. Pondoc, however, said the PhilHealth Region 6 did not raise any new issues in the motion for reconsideration.
They noted that the rules requiring prior approval of the Office of the President and the Department of Budget and Management were already in effect before the officials concerned approved the disallowed cash benefits.
“The arguments of the movant are mere rehash of those arguments raised in its Appeal Memorandum and Petition for Review. As to the issue of good faith, the same cannot be favorably considered as to the officials who authorized/approved/certified the grant or payments. They cannot feign ignorance of the presidential directives or laws in granting the unauthorized allowances and benefits,” the COA declared.
Even the rank-and-file employees were not spared as the COA cited the SC rulings in the 2019 case of Chozas vs. COA and the 2020 case of Madera vs. COA both of which said that good faith on the part of passive recipients do not excuse them from the principles of unjust enrichment.
“In view of the SC ruling in the above-mentioned cases, this Commission is constrained to modify its decision exempting the recipient-payees from refunding the amounts they received. Thus, the approving and certifying officers shall be liable to refund the total disallowance which shall be reduced by the actual refunds of recipient-payees who are liable to refund the amounts they received,” the COA said.
