OFFICIALS and employees of the Victorias City Water District in Negros Occidental have been ordered by the Commission on Audit (COA) to pay back the Christmas cash gifts, anniversary bonuses, and financial assistance totaling P1,941,790.95 they received 12 years ago.
In a 12-page decision, the COA en banc denied the petition for review filed by the water district seeking reversal of the 2016 ruling of the COA Region 6 that affirmed notices of disallowance issued against the cash perks.
COA chairperson Gamaliel Cordoba and Commissioners Roland Pondoc and Mario Lipana sustained the finding of the supervising auditor and the audit team leader that there was no legal basis to grant monthly financial assistance of P2,000 to each personnel or a total of P695,389.95; anniversary bonuses of P698,156; and Christmas cash gift of P548,254.
Held liable in the notices of disallowance were water district general manager Paulino Cruz, acting bookkeeper Lino Bascug, and all the personnel of the Victorias City WD who received said extra compensation.
In their petition, water district officials argued that the financial assistance, anniversary bonus and Christmas gift have been granted since December 31, 1999 hence the disallowance is against the rule on non-diminution of benefits to protect the rights of workers.
The COA however sustained the stand of the COA Region 6 that the Salary Standardization Law (RA 6758) which prohibited additional benefits and allowances applies to all government positions, including govern-owned and controlled corporation like water districts.
The only exceptions were that the employees who are entitled to receive such benefits were incumbents as of July 1, 1989 and were already receiving the same as of that time.
“The officers who approved and certified the payment of… financial assistance, anniversary bonus and Christmas gift granted to VCWD officials and employees cannot claim good faith on their failure to observe a clear provision of law. As such, they are solidarily liable for the transaction,” the COA said.