THE Commission on Audit (COA) has lifted the Notice of Disallowance issued in 2014 against the payment of year-end Financial Assistance (YEFA) totaling P47,022,244.91 to officials and employees of the Civil Aviation Authority of the Philippines (CAAP).
In a decision released last week, the COA en banc granted the petition for review filed by CAAP officers even if it was filed 360 days after the receipt of the disallowance and beyond the 180-day reglementary period for the filing of appeals.
The Commission said the importance of the issues and the amount involved warrant the setting aside of technicalities to resolve the case on its merits.
Records showed that the CAAP board of directors passed Board Resolution No. 2010-021 granting YEFA to all personnel regardless of the status of employment chargeable against the agency’s corporate funds.
However, the supervising auditor of the CAAP head office suspended the release of the extra allowance, citing a lack of legal basis because it was not backed by prior approval from the Office of the President.
It explained that government-owned or controlled corporations like CAAP are governed by the Compensation and Position Classification Act of 1989, which provides that all allowances and benefits are covered by the Salary Standardization Law (SSL). Any increase in salary or grant of additional compensation that is not in accordance with the SSL is subject to the approval of the OP.
Among those held liable were then assistant director general Aida Dizon, finance department officer-in-charge Jocelyn de Leon, assistant DG for civil security and intelligence Francisco Dino, and 20 others.
In its petition, the CAAP argued that the basis for the disallowance no longer exists in light of the post facto approval through a memorandum dated April 29, 2016 issued by then executive secretary Paquito Ochoa Jr.
“This Commission finds the petition impressed with merit. The payment of YEFA was disallowed principally on the ground that it was granted without authority. In view of the post facto approval of the President contained in the Memorandum of then Executive Secretary Ochoa, the disallowance of the YEFA … is lifted,” the Commission said.
