FORMER Baguio City mayor Mauricio Domogan has failed to persuade the Commission on Audit (COA) to reverse its 2018 decision that upheld notices of disallowance issued against a P59.77 million extra pay for city officials and employees in 2009.
The COA Commission Proper said the city government ignored a policy issuance from the Department of Budget and Management that barred the payout of cost of living allowances (COLA).
Auditors said the fund disbursement violated DBM Local Budget Circular No. 081-05 issued on December 12, 2005 which clarified that all allowances, including COLA, were already integrated in the basic salary of all government personnel.
The DBM had specifically declared that the grant of COLA and other allowances and benefits already integrated in the basic salary “shall constitute illegal disbursement of fund.”
In denying Domogan’s motion for reconsideration, the commission pointed out that all city government officials who approved, authorized, or certified the validity of the COLA are jointly liable for the whole amount disallowed since there is no justifiable ground for them to invoke good faith.
It noted that Baguio City’s COLA was paid out more than three years after the DBM issued the Local Budget Circular.
However, passive recipients of the COLA including rank-and-file employees who had no hand in approving or processing the allowance will only be required to refund the amount they received.
“Clearly, the approving and certifying officers are solidarily liable to refund the amount disallowed while the recipients are liable only to the extent of the amount they received,” the COA said.
