THE Commission on Audit has denied the appeal of former Agrarian Reform Secretary Rene Villa seeking exclusion from the Notices of Disallowance issued in 2010 against the payment of unauthorized health benefits totaling P70.3 million to DAR officials and employees from December 2001 to May 2005.
The ruling of the COA Commission Proper was released only yesterday although it was signed by former COA chair Michael Aguinaldo, who stepped down last February 2.
Although Villa served as DAR chief only from August 23, 2004 to July 8, 2005, the COA noted that he was a signatory to the Collective Negotiation Agreement (CNA) between the DAR and the DAR Employees Association (DAREA) that provided for the grant of the disallowed medical allowances.
Since all agency personnel are already covered by the Philippine Health Insurance Corporation (PhilHealth), the COA said that extra medical allowances for DAR officials and employees constitute double compensation, which is barred under Section 8, Article 9-B of the Constitution.
Auditors also found the P70.3 million was charged against the Agrarian Reform Fund (ARF) of the Comprehensive Agrarian Reform Program (CARP), hence it was disallowed in audit.
“…(T)he ARF was instituted as a special fund under Proclamation No. 131 6 dated July 22, 1987. Thus, it shall be used only for the purposes prescribed. Atty. Villa, who was then DAR Secretary, was one of the persons named liable under the NDs for being a signatory to the Collective Negotiation Agreement (CNA),” the COA pointed out.
In previous rulings, the COA had declared that the ARF is a special fund for exclusive use as payment of compensation to landowners and expenses involved in the implementation of support services for the CARP.
However, the COA clarified that Villa’s liability pertains only to the payments covered by the CNA he signed during his stint as agency head.
The commission also swept aside his contention that he was denied due process because he did not receive a copy of the Audit Observation Memorandum, the Notice of Disallowance, and other issuances in relation to the medical allowances.
“Atty. Villa received a copy of the COA decision and he was allowed to file an appeal therefrom pursuant to the existing rules of this Commission. The act of filing the MR constitutes an exercise of his right to due process. Hence, his right to due process was not violated,” the COA pointed out.
