EXECUTIVES and employees of the Mabalacat City Water District (MCWD) must refund P27.96 million in various allowances and bonuses received in 2012 and 2013 while officials who authorized and approved the disbursements could face investigation by the Office of the Ombudsman for possible criminal offenses.
This was declared by the Commission on Audit in a decision released last week, affirming the 2017 ruling of the COA Regional Office 3 and denying the petition for review filed by water district officials.
The COA Commission Proper said the MCWD’s Board of Directors overstepped the bounds of their authority in issuing several board resolutions granting various allowances and benefits to agency personnel.
Among the allowances and benefits disallowed by government auditors were P10.86 million in educational assistance, financial assistance, and medical benefits; P4.59 million for rice allowance; P3.06 million for water allowance; P6.52 million as employers’ share in the Provident Fund; P150,021 mid-year and year-end bonuses to the BOD; P25,000 cash gift of BOD; general manager’s excess extraordinary and miscellaneous expenses (EME); P52,800 clothing allowance; P863,327 education and financial assistance, P360,000 rice allowance; and P240,000 water allowance.
COA Region 3 said all allowances and benefits of government employees — other than those allowed by law — have already been integrated in their compensation package under RA 6758 or the Salary Standardization Law.
“The MCWD Board of Directors has no discretion to grant Clothing Allowance, Mid-Year Bonus, Year-End Bonus, and Cash Gift. Hence, the persons determined liable under [the notices of disallowance] namely: Atty. Francis Dimaliwat, Ms. Daisy S. Franco and the BOD of MCWD, shall remain solidarily liable for the disallowances,” the COA said.
On the other hand, water district personnel who merely received their share of the disallowed cash perks are only required to refund the amount they accepted applying the principles of unjust enrichment.
