GOVERNMENT auditors have confirmed that the new management of the Clark Development Corporation (CDC) under President and Chief Executive Officer Manuel Gaerlan has put a stop to all excessive perks previously enjoyed by members of the agency’s board of directors.
In its 2021 report released March 28, the Commission on Audit said the CDC has fully implemented all the recommendations made by the audit team regarding the return of seven brand new sports utility vehicles (SUVs), refund of excess allowances, payment of rent and utilities in villas inside the Clark Freeport Zone, and the turnover of 14 mountain bikes and road bikes intended for the use of employees.
The COA had earlier questioned the procurement of SUVs for seven of nine board members each reportedly costing the agency P2 million in August 2020, five months into the COVID-19 pandemic after the national government had called for austerity measures.
Auditors said the issuance of new service vehicles was unnecessary since each CDC board director is already entitled to P20,000 transportation and meals allowances per month or P240,000 each year.
Despite collecting the full allowance, however, two directors even sought reimbursement of fuel expenses from the CDC.
In addition, they were also given a villa each inside the freeport zone despite lack of any legal basis. Five of the villas were renovated earlier to the tune of P3.56 million paid by the CDC, in addition to utility bills totaling P1.23 million.
The COA pointed out that giving such accommodation is unjustified as the board only meets two to four times a month.
On top of these, eight directors were found to have commandeered mountain bikes or road bikes purchased by the CDC supposedly to promote a healthy lifestyle among its employees. Each bike was purchased between P31,850 to P32,800 each.
By Gaerlan’s directives, however, the SUVs were recalled and turned over to the Asset Management Division on April 15, 2021 to be used only for “official purposes” backed by an approved trip ticket.
Board directors who received excess transportation allowances were made to refund the full amount through salary deductions.
