THE Commission on Audit has affirmed notices of disallowance (NDs) issued against the National Economic and Development Authority (NEDA) for the payment of Cost Economy Measure Award (CEMA) from 2009 to 2012 and Personnel Motivational Incentives (PMI) in 2012 totaling P10.65 million.
In its decision released last week, the COA Commission Proper denied motions for reconsideration filed by seven NEDA Regional Directors seeking the lifting of the disallowance, insisting the payments were legal and authorized by law and that the approval of the cash perks was made in good faith.
Those who sought recall of the NDs were NEDA regional directors Leon Dacanay Jr. (Regional Office 3), Dionisio Ledres Jr. (RO2), Nestor Rillon (RO1), Agnes Tolentino (RO5), Luis Banua (RO4-A), Phlorita Ridao (RO9), and Teresita Socorro Ramos (RO12).
However, the COA pointed out that the cash benefits were not covered by any specific appropriation in the national budgets for 2009 to 2012.
“To reiterate, the payment of CEMA and PMI by the NEDA ROs has no legal basis, thereby making the payment an irregular expenditure,” the commission said.
Likewise, it pointed out that the fund disbursement conflicted with provisions of Presidential Decree No. 1597, which made it mandatory that the grant of additional benefits for government employees must secure the recommendation of the Department of Budget and Management and the approval of the Office of the President.
On the NEDA regional directors’ claim of good faith, the COA said the approving and certifying officers are liable to refund the full amount while the rank-and-file personnel would be required to return the portion of the amount that they actually received.
“The provision on unjust enrichment was made as basis by the SC in requiring the recipients to return the amount disallowed in the case of Chozas vs. COA, where it held that the natural consequence of a finding that the allowances and benefits were illegally disbursed, is the consequent obligation on the part of all recipients to restore said amounts to the government coffers,” the COA said.
