GOVERNMENT auditors has ordered the Food Terminal Inc. (FTI) to refund P9.932 million in extra bonuses and paychecks that it gave to ots officials and employees from 2018 and even during the last two years of the COVID-19 pandemic.
The Commission on Audit (COA) said the cash benefits had no legal basis.
“The payments of medical benefits, mid-year bonus and salary increases to FTI officers and employees in the amounts of P3.679 million; P3.774 million and P2.479 million, respectively, or a total of P9.932 million for CYs 2018 to 2021 were without legal basis,” the COA said in its 2021 report released last April 8.
FTI is a government-owned or controlled corporation (GOCC) that is supposed to facilitate wholesale trading of food and farm produce as well as help food promote processing and distribution nationwide.
As of yearend 2020, the agency had properties in Fort Bonifacio, Taguig City measuring 38.952 hectares. Its corporate life has been extended to May 2, 2068.
Records showed FTI approved salary increases totaling 1.55 million, P1.9 million in mid-year bonuses, and P2.62 million medical benefits both for regular employees and dependents in 2020 and 2021 after the national government declared a state of calamity on March 17, 2020 due to the COVID-19 pandemic.
The audit team said the fattened pay checks did not have the required prior approval from the Office of the President contrary to RA 10149 or the GOCC Governance Act of 2011, Executive Order No. 7, s. 2010, and Government Commission for GOCCs Memorandum Circular No. 2018-03.
On the other hand, the payment of extra medical benefits was found to be in conflict with COA Resolution No. 2005-001 and COA Circular No. 2012-003.
