CONTRACT of service (COS) personnel getting higher salary rates than their supervisors?
Government auditors have accosted the Office of Transportation Cooperatives (OTC) for paying COS employees salaries ranging from P45,629 to P106,683.50 even if they were only performing “ordinary work.”
“The COS personnel engaged by OTC were neither individual consultants nor technical experts but individuals who perform ordinary piece of work or intermittent job of short duration,” the audit team said in a report released last May 31.
The OTC said the personnel were hired in relation to the implementation of the Public Utility Vehicle Modernization Program (PUVMP), in which the agency received P157.035 million to assist in the preparations and tests required.
Agency payroll showed project managers were paid monthly rates of P95,083 to P106,683.50; a training specialist P83,406 with additional 10 percent premium; a supervising cooperative development specialist P65,319 plus 10 percent; and information officers between P45,629 to P46,374.90 plus 10 percent.
Based on the said descriptions, the audit team said the hiring should have been governed by RA 9184 (Government Procurement Reform Act) and its 2016 Revised Implementing Rules and Regulations (RIRR) but this was not complied with.
The OTC claimed it acted in good faith based on Board Resolution No. 2020-11-01, which authorized the OTC Executive Director to hire job order and COS personnel as needed.
It added that the engagement of the COS personnel did not require external technical and professional capability and expertise that are beyond the capacity of the procuring entity.
It likewise pointed out that when the COS contracts were discontinued in 2020, regular OTC employees took their place.
Auditors challenged this claim, noting that if the COS hires were not “experts” and their work can be assumed by regular employees, then they did not deserve the pay rates given.
“The salary rates of COS personnel shall be paid equivalent to the daily wage/salary of comparable positions in government but not to exceed the salary of the immediate supervisor,” the COA pointed out.
“In view of the absence of documents/proof of compliance with the procedures in the hiring of technical experts set forth in RA 9184… the payment of salaries in the total amount of P2,206,628.45 for FYs 2019-2020… may be considered irregular expenditures,” the COA added.
Despite hiring highly paid manpower, the commission noted that the OTC’s budget utilization only totaled 30.96 percent or P48.62 million of the P157.035 million turned over by the Department of Transportation (DOTr).
A review of the expenses incurred showed the bulk went to “professional services” amounting to P17.98 million; “training,” P14.96 million; “travels,” P3.67 million; “rent,” P2.72 million; and unliquidated disbursements, P4.46 million.
The slow implementation was attributed to inadequate planning activities and lack of proper budgeting/spending.
