SEVEN former Cabinet officials of the Arroyo administration have been cleared by the Commission on Audit (COA) of any liability in connection with the disallowance issued against the grant of cash incentives to former officials and employees of the National Power Corporation (NPC) in 2009 totaling P327.27 million.
In a decision released yesterday, the COA Commission Proper said the cabinet officials, as members of the NPC Board of Directors, disapproved the payment of 2009 performance incentive benefits (PIB) to the personnel of the NPC Non-Operation and Maintenance Agreement (OMA)-Small Power Utility Group (SPUG)/ Watershed and Operation Maintenance-Head Office, Engineering.
“In fact, said Resolution was disapproved by the BOD as shown by the certification of the NPC Corporate Secretary dated January 4, 2017. In effect, there was no such Resolution passed. Thus, all the members of the BOD should not be included as persons liable for the disallowance,” the COA said.
Excluded from the list of persons held liable were former Budget Secretary Rolando Andaya Jr., former Finance Secretary Margarito Teves, former Interior Secretary Ronaldo Puno, former Environment Secretary (now party-list Buhay Representative) Jose “Lito” Atienza, former Economic Planning Secretary Augusto Santos, former Trade Secretary (now Monetary Board member) Peter Favila, and former Agriculture Secretary (now Bohol Governor) Arthur Yap.
The COA ruling was prompted by Andaya’s petition appealing the 2015 judgment and finality of decision that found him among persons liable for the cash incentive.
Auditors found the said extra pay irregular due to the absence of a prior clearance from the Office of the President. They also declared the amount excessive, with each personnel receiving the equivalent of 5.5 percent of their monthly basic salaries.
The payment was supposedly authorized by Board Resolution No. 2009-72 dated December 18, 2009.
Other than the NPC Board of Directors, also held liable was NPC chief executive officer and president Froilan Tampinco, who was tagged as the approving authority behind NPC Circular No. 2009-58 hat prescribed the rules and regulations for the grant of the PIB.
In his petition, Andaya pointed out that he was no longer a member of the Board of Directors when the supposed resolution was approved as he filed his candidacy for congressman of Camarines Sur on December 14, 2009, four days before the alleged Board approval.
