THE Commission on Audit has lifted the disallowance issued in 2016 against what was deemed at the time as excess hazard pay for Baguio City’s public health workers (PHWs) amounting to P1,211,408.13.
The Commission’s en banc ruling released last week means the city’s PHWs at Salary Grade 20 or higher are no longer required to refund part of the amount paid to them in 2014 and 2015.
Records showed the Notice of Disallowance was issued based on Item 7.2 of the Department of Budget and Management – Department of Health Joint Circular (DBM-DOH JC) No. 1 which set a fixed amount of P4,989.75 per month as hazard pay for PHWs receiving SG-20 or higher and who are exposed to “high risk hazards.”
Anything paid beyond the said fixed amount was considered “excessive” and disallowed in the audit.
However, the COA pointed out that the Supreme Court, in a ruling dated July 28, 2015 in the case of Cawad vs. Abad, the High Court invalidated the entire Item 7.2 of the DBM-DOH Joint Circular for being contrary to the mandate of the Magna Carta of Public Health Workers (RA 7305) and its Revised Implementing Rules and Regulations. (RIRR).
The COA noted that the nullified item in the DBM-DOH Joint Circular lowered the hazard pay rate of affected PHWs below the minimum prescribed by Section 21 of the Magna Carta for PHWs.
“The SC’s declaration of nullity, therefore, was in favor of the PHWs in that the amounts of hazard pay for which they were entitled should not be reduced by implementing Item 7.2 of the DBM-DOH JC No. 1,” the Commission said.
Baguio City accountant Antonio Tabin filed the petition for review on behalf of the PHWs.
He was among the city officials held liable together with city treasurer Alicia Onoza, budget officer Leticia Clemente, assistant city treasurer Alex Cabarrubias, city veterinarian Brigit Piok, city health officer Rowena Galpo, and the 21 city health workers who were previously deemed to have received excess hazard pay.
With the basis for the notice of disallowance having been set aside, the COA said maintaining it is no longer justified.
“Thus, applying SC decision in Cawad and COA Decision No. 2022-484 to this case, the disallowance has no legal basis and the same should be lifted,” the commission added.
