THE Commission on Audit has set aside the March 27, 2015 ruling of its Corporate Government Sector (CGS)-Cluster 1 that lifted three notices of disallowance (NDs) previously issued against cash perks paid to officials and employees of the Development Bank of the Philippines (DBP) in 2012 totaling P226.57 million.
In a 10-page decision, the COA Commission Proper ordered the disallowance reinstated against the P179.23 million DBP expenses on Personnel Services (PS) with no approved allocation from the Department of Budget and Management (DBM); the P36.8 million Performance Incentive Bonus (PIB); and the P10.54 million Performance-Based Incentive (PBI).
However, the COA ordered a re-computation of the disallowed amount with regard to the PS expenses as it noted that apart from the regular benefits and allowances allowed by law, the DBP further fattened the paychecks of its officers and employees by creating eight additional allowances/bonuses.
These were the family allowance of P400 per month; children’s allowance of P100 per month (maximum of four children); teller’s allowance of P1,800 per year for stationary tellers and P2,400 for roving tellers; study plan of P40,000 per child (maximum of four children); financial assistance of P50,000; anniversary bonus of P3,000; socialized health care benefits ranging from P75,000 to P700,000 depending on the seriousness of the disease; and dental and optical benefits of P1,750 each.
Auditors originally issued the notices of disallowance in 2013 but these were lifted based on the 2015 ruling of the COA-CGS on the ground that the lack of funding had been remedied when the DBM approved a supplemental budget.
However, the said ruling was still not final as the COA rules required an automatic review by the Commission Proper.
It noted that regardless of the supplemental budget, the problem remained since the DBP expenses were also flagged for violations of COA Circular No. 2013-003 and Presidential Decree 1445 (General Auditing Code of the Philippines) in relation to PD 1597.
“The subsequent approval by the DBM of the supplemental budget for CY 2012 does not necessarily cure the defect of the disbursement and/or payment of the benefit, as the expenditures were also made in violation of the aforementioned rules and regulations,” the commission said.
At the same time, it noted that the DBP relied on the supposed post facto approval by former President Gloria Arroyo of the grant of the cash bonuses and incentives dated April 22, 2010.
The COA said the date, falling just 18 days before the May 10, 2010 general elections, made such move by Arroyo illegal under Section 261, Article 22 the Omnibus Election Code prohibiting the grant of pay increases 45 days before a regular election.
