THE Commission on Audit has granted the petition for review filed by former South Cotabato governor Daisy P. Avance-Fuentes seeking the lifting of 34 notices of disallowance (NDs) on the payment of P23.43 million cash incentives to officials and employees of the provincial government in 2013.
COA Chair Michael G. Aguinaldo and Commissioner Roland C. Pondoc held that in the interest of substantial justice, the appeal should be allowed to be heard even if it was filed past the maximum period of 180 days for seeking reconsideration of a COA decision.
Records showed that the 34 NDs were issued after the province paid P30,500 productivity enhancement incentives (PEI) to each personnel of the local government for a total of P27,852,600.
The audit team said the maximum allowable PEI for each employee is only P5,000 hence the “excess” amount of P23,427,290 was disallowed.
The former governor said the fund releases were compliant with all budget rules and that the employees who received them should not be asked to refund their share since they merely accepted the sum in good faith.
In ruling to grant the appeal, the COA Commission Proper upheld the former governor’s position that under the Department of Budget and Management (DBM) Budget Circular No. 2013-3, each LGUs’ Sanggunian (provincial, city, or municipal council) were authorized to determine the amount of PEI based on the LGU’s financial capability.
By its computation, the COA said the province of South Cotabato was authorized to pay PEI up to P48.77 million hence the P27.85 million was well within the limit.
