THE Commission on Audit has affirmed that the P35.84 million hazard pay and P6.69 million subsistence allowance paid by the Philippine Health Insurance Corporation (PhilHealth)-National Capital Region (NCR) and Rizal to its personnel in 2014 were irregular.
In a six-page decision, the COA Commission Proper denied motions for reconsideration filed in 2019 by PhilHealth Regional Office for NCR and Rizal that sought the lifting of the notice of disallowance issued on April 27, 2015.
The appeal contended that PhilHealth officials and employees are public health workers (PHWs) within the contemplation of Republic Act No. 7305 or the Magna Carta of Public Health Workers and are entitled to receive the benefits.
Likewise, it invoked the authority of the PhilHealth Board of Directors which unanimously confirmed the payout of the cash benefits to PhilHealth-NCR and Rizal personnel.
Unless disapproved by the President of the Philippines, PhilHealth said the collective act of its BOD is presumed to carry the imprimatur of the Chief Executive since they are presidential appointees hence considered his alter ego.
Without disputing the classification of PhilHealth officials and employees as PHWs, the COA noted that the payment of hazard pay did not comply with the Department of Budget and Management (DBM) and Department of Health (DOH) Joint Circular No. 1, series of 2006.
This pertains to the primary condition that PHWs are not automatically entitled to hazard pay unless their work area is close or attached to a health facility and they are exposed to special kinds of hazards listed under the Implementing Rules and Regulations of RA 7305.
“The amount paid as Hazard Pay to the officers and employees of PhilHealth RO-NCR and Rizal, in the total amount of P35,842,040.08, is considered irregular. As found by the audit team, the PCARES staff in the PhilHealth RO-NCR and Rizal in CY 2014 are mere job order contract workers and are not compensated with PHW benefits,” the COA declared.
By a similar review, payout of subsistence allowances was found to have violated DBM-DOH Joint Circular No. 1 series of 2012 because the workers were assigned to areas far from any hospital or clinics.
The COA also rejected the alter ego doctrine, noting that in a 2013 decision in the case of Manalang-Demigillo vs. Trade and Investment Development Corporation, the Supreme Court held that the doctrine of qualified political agency does not extend to the acts of the BOD since its members were not directly appointed to their post by the President.
