THE Commission on Audit has ordered former officials of the Department of Agrarian Reform Provincial Office (DARPO) of Surigao del Norte and Dinagat Island to refund a total of P36.62 million in unauthorized cash perks they paid to themselves and other agency personnel from 2012 to 2015.
In an 18-page decision released this week, the COA en banc swept aside the respondent officials’ claim of good faith, noting that they “have knowledge of the irregularities in the grant of allowances and benefits” but simply ignored previous directives of the commission issued through Audit Observation Memoranda.
The COA said there was no legal basis for the DARPO officials to use the Agrarian Reform Fund (ARF) to fatten their paychecks because the law on the Comprehensive Agrarian Reform Program (CARP Law) specifically provided that the said money may only be used to pay landowners for land that will be distributed to landless farmers and for expenses related to the implementation of support services.
Records showed the DARPO of the two provinces charged various bonuses, allowances and cash incentives from the ARF. Among these were Collective Negotiation Agreement (CNA) incentives, signing bonuses, financial assistance, medical allowances, sports allowances, and other additional benefits.
Among those held liable were PAROs Teresita Depeñoso, Jose Sebucao, and Ma. Elizabeth de Guzman, PARPO Jamil Amatonding Jr., assistant statistician Olga Arana, accounting clerk Edilberto Odvina, agrarian technologist Evangeline Oriat, alternate accountant Tomasita Solloso, CARP officers Raul Caliso and Milagroso Bulawan, personnel officer Susan del Castillo, lawyer Jonalo Ace Chua, alternate budget officer Tessie Navarro, acting budget officers Maria Victoria Peñaranda and Bethsaida Dolera, acting records officer Dorothea Febra, and various officials and employees who received the cash perks.
The DAR officials justified the multiple bonuses and allowances, claiming there was improved output performance from 2010 to 2013 and that the employees deserved the additional benefits to alleviate the impact of Typhoon Sending that hit the region in early 2012.
However, the COA said the arguments had no legal basis.
“The ARF is characterized as a special fund, which is for a special purpose, having been received for the fulfillment of some obligation, and thus, should be obligated only for the purpose for which it was created. Clearly, the ARF cannot be utilized for purposes other than the payment of compensation to landowners and expenses involved in the implementation of support services,” the Commission said.
While the officials who certified the availability of funds and completeness of the support documents were held solidary liable for the P36 million, employers and officers who only had a passive role as recipients of the disallowed bonuses and allowances are only required to return the amounts that they received.
For performing only their ministerial duties, Arana, Odvina, Oriat, Solloso, Navarro, Peñaranda, Dolera, Febra and del Castillo were excluded from solidary liability.
Aside from the demand for a full refund, the COA also said the audit records would be forwarded to the Office of the Ombudsman for investigation if responsible officials could be indicted for criminal offenses.
