THE Commission on Audit has issued a resolution ordering officials and employees of the Social Security System (SSS) – Central Visayas Division to refund P9.9 million in disallowed cash benefits and allowances paid to them in 2010.
The en banc ruling, dated October 1, 2024 but released only yesterday, affirmed the 2014 decision of the COA Corporate Government Sector – Cluster 2 and denied the Motion for Partial Reconsideration filed by the SSS.
COA Chair Gamaliel Cordoba and Commissioners Roland Café Pondoc and Mario Lipana sustained the finding of the COA CGS that the grant of the benefits and allowances was irregular since it was disbursed in excess of the SSS corporate operating budget (COB) for the year.
Records showed the SSS asked the Department of Budget and Management (DBM) for the provision of P5.385 billion for Personnel Services, but only P4.934 billion was approved. Regardless, the SSS still paid out P338.07 million over the approved COB consisting of special counsel allowances, overtime pay, Christmas bank/gift certificates, and rice subsidies.
Out of the amount, P18.54 million was paid to executives and employees of SSS-Central Visayas Division.
After then SSS president Emilio De Quiros Jr. appealed, the DBM reconsidered the ceiling on the grant of rice subsidies and bank certificates to SSS employees. This reduced the disallowed amount for SSS-Visayas to P9.9 million.
“This Commission reiterates its ruling that the payees/recipients are required to refund the amounts they have actually received, applying the principles of unjust enrichment and solutio indebiti,” the commission said.
Solutio indebiti is a principle that requires the return of something that was received by mistake.
On the other hand, the principle of unjust enrichment makes it obligatory that all recipients of allowances and benefits illegally disbursed should return the full amount.
“In Madera vs. COA, the (Supreme Court) has clarified that the principles of unjust enrichment and solutio indebiti apply regardless of the good faith of passive recipients. Based on the foregoing, the payees/recipients shall remain liable to refund the disallowed amounts,” the COA said.
