WHAT seemed like a windfall 15 years ago has become a headache for officials, employees, job order hires, consultants, and government auditors of the Northwest Samar State University (NwSSU) as the Commission on Audit is requiring them to refund P8.67 million in irregular allowances and cash gifts received in 2009.
The COA en banc affirmed its 2022 ruling that denied challenges against notices of disallowance (NDs) issued on the fattened paychecks of university personnel, denying the Motion for Reconsideration filed by NwSSU President Benjamin Pecayo.
Held liable in the NDs were then NwSSU president Socorro Bohol, accountant Teonas Detosil, all members of the Board of Trustees (BOT), and all university personnel and COA auditors who were paid the unauthorized extra pay.
Records showed the university gave out sums such as Extra Cash Gift, Extension Allowance, Cultural Allowance, Economic Crisis Allowance, Medical Allowance and Motivation Allowance which were not covered by the Salary Standardization Law (RA 6758) and lacked the required prior approval of the Office of the President.
The Commission noted that the Civil Service Commission Memorandum Circular No. 40, s. 1998 prohibits payment of extension allowances or extra gifts to consultants and members of the BOT which are deemed “irregular expenditures.”
“The Supreme Court (SC) has already held that members of the board of agencies, and consultants who are not salaried officials of the government are not entitled to cash gifts and other fringe benefits as they are not considered employees of the hiring agency,” it pointed out.
On the other hand, COA auditors are likewise barred from accepting cultural allowances and economic crisis assistance based on COA Memorandum No. 99-06.
Moreover, the COA said the money was drawn from the university’s Special Trust Fund which is specifically intended for instruction, research, and similar programs.
“There is an irregularity in the funding source of the incentives and allowances. Section 4(d) of RA No. 8292 enumerates the purposes for which the Special Trust Fund may be used, which are instruction, research, extension or other programs of the university or college,” the COA said.
While university officials invoked good faith, the commission held that it found the violation of rules was not a mere lapse of judgment.
“The patent disregard of these issuances amounts to gross negligence, making them liable for the refund thereof. On the other hand, the payees-recipients of unauthorized allowances and benefits are required to refund the amounts they have actually received applying the principles of unjust enrichment and solutio indebiti,” the COA added.
