THE Commission on Audit is pressing former officials of the Land Bank of the Philippines (LBP) to settle P5.134 million in disallowed cash perks paid to them in 2002 and 2003 for sitting in posts in the state-owned bank’s subsidiaries.
In the 2023 audit of Landbank Countryside Development Foundation Inc. (LCDFI) released on March 27, COA reminded the Landbank and its subsidiaries that the notice of disallowance (ND) issued on Aug. 11, 2008 has been affirmed by the Supreme Court on Oct. 5, 2021.
The same SC ruling dismissed the petition on certiorari filed by the Landbank, Landbank Insurance Brokerage Inc. (LIBI), Landbank Realty Development Corp. (LBRDC), Landbank Leasing Corp. (LLC), Masaganang Sakahan Inc. (MSI), and LCDFI.
Their motion for consideration was likewise denied by the SC en banc in a resolution dated April 5, 2022 affirming the disallowance “with finality.”
Covered by the disallowance were 14 bonuses, allowances, and cash gifts including P1.12 million productivity incentive expenses, P752,800 business development expenses, P711,000 Christmas gift package, P480,000 representation and transportation allowances, P403,500 yearend 2002 Christmas gift/raffle package, P400,000 Christmas gift checks, P303,000 2003 Christmas gift package, P282,000 anniversary bonuses, and P263,750 mid-year gift package.
COA said these extra compensations were received by the LBP officials on top of the compensation they were receiving from the bank.
It said the fattened paychecks were in violation of Section 8, Article IX-B of the 1987 Constitution which prohibits double compensation to government employees.
It held that the Landbank officials were no longer supposed to receive extra payment for holding other positions in the Landbank subsidiaries or in their boards of directors.
The Commission said the bank officials who received extra pay from subsidiaries are solidarily liable and must return the disallowed amount.
On the other hand, payees who were merely passive recipients of the disallowed stipends are liable to return only their shares in the disallowed amounts.
