THE Commission on Audit has affirmed the validity of the notice of disallowance (ND) issued against the excess payment of P10.99 million Productivity Incentive Bonuses (PIB) to officials and employees of the Philippine Health Insurance Corporation (PhilHealth)-Cordillera Administrative Region (CAR) in 2012.
In a six-page decision released yesterday, the COA Commission Proper denied the petition for review filed by PhilHealth-CAR on December 8, 2015 seeking the lifting of the disallowance.
The appeal invoked the fiscal autonomy of PhilHealth under RA No. 7875 that created the state health insurer and argued that the recipients received the PIB in good faith, hence it would be unfair to require them to refund the money.
Held liable in the ND were Management Services Division chief Imelda-Cristeta Villamar, administrative officer Leizle Anongos, and fiscal controllers Rhea Lopez and Maria Linda Gadingan.
In the assailed ruling, the COA-Corporate Governance Sector noted that fiscal autonomy under RA 7875 is not “all-encompassing and absolute” as it did not excuse non-compliance with compensation laws and regulations.
It also said the grant of benefits and allowances outside the Salary Standardization Law without prior approval of the Office of the President is a clear disregard of Section 3 of Administrative Order No. 103.
The Commission Proper agreed, noting the payment of the excess bonus was also in conflict with the guidelines set by the Department of Budget and Management (DBM).
“The excess PIB received by the PhilHealth-CAR officers and employees was properly disallowed for being contrary to Section 1 of EO (Executive Order) No. 80, and Sections 4.2.2 and 4.2.3 of DBM Budget Circular No. 2012-4 dated December 17, 2012,” the COA noted.
The Commission reminded PhilHealth of its duty to safeguard the agency’s fund from “illegal disbursements.
“It must be emphasized that the main source of PhilHealth’s operating budget is the contributions of its members. Like any other social insurance, the members’ contributions are treated as a trust fund, and thus, should be managed and protected with utmost integrity,” the COA said.
It added that good faith is not a valid excuse for officials of PhilHealth-CAR who authorized, approved, or certified the grant or payments as the requirement for prior approval by the Office of the President was already known to them before the PIB payout.
“The approving and certifying officers are solidarily liable to refund the total amount disallowed; while the recipient-payees are liable only to the extent of the amounts they received,” the COA said.
