FORMER Cabinet members of the Arroyo administration and personnel of the National Power Corp (NPC) who received P87.7 million cash benefits under the Enhanced Employee Health and Wellness Program and Related Financial Assistance e (EHWPRFA) released 14 years ago are now being required to return the entire amount.
In an en banc decision, the Commission on Audit affirmed the Notice of Disallowance issued in 2012 against the grant of the benefits for violating Administrative Order No. 103, which suspended the grant of new or additional benefits to officials and employees of government-owned or controlled corporations in 2010.
While NPC officials claimed the EHWPRFA was not a new or additional benefit but a part of the Comprehensive Health Benefit Program (CHBP), COA chairperson Gamaliel Cordoba and Commissioners Roland Café Pondoc and Mario Lipana disagreed.
They noted that the CHBP was granted in the form of reimbursement of medical, dental, and optical expenses, annual physical examinations, and executive check-ups or strictly non-cash.
“On the other hand, EHWPRFA was given in the form of cash of various amounts depending on the status of employment and date of entry of the concerned personnel. Evidently, the EHWPRFA is an allowance or financial assistance, which does not distinguish whether or not its grant is for the health-related program,” the COA pointed out.
Held liable in the Notice of Disallowance issued in 2012 were NPC Board of Directors chairperson Margarito Teves and members Rolando Andaya Jr., Peter Favila, Arthur Yap, Eleazar Quinto, Ronaldo Puno, Augusto Santos, and Froilan Tampinco together with officials and employees of NPC who received cash benefits.
The Commission likewise overruled the contention of the petitioners that the requirement for prior approval by the Department of Budget and Management (DBM) or the Office of the President has been complied with since the Board of Directors are Cabinet members who are alter egos of the Chief Executive.
“Although some of the members of the BOD of NPC are cabinet members or department secretaries appointed by the President, they were not acting as representatives of the President when they approved the resolution granting the EHWPRFA,” the COA declared.
In the absence of such approval from the President, the COA said the finding that the cash benefit is not valid or legitimate must stand.
“The obligation to refund the payment received falls upon both those directly responsible, i.e., the approving officers, and those who actually received the disallowed benefits,” it added.
