THREE separate appeals filed by officials of the Civil Aviation Authority of the Philippines (CAAP) on disallowed cash allowances and bonuses paid to the agency totaling P359.19 million were decided on 2-1 votes by the Commission on Audit.
With a majority of two, COA Chair Gamaliel A. Cordoba and Commissioner Mario G. Lipana granted the two Motions for Reconsideration and a Petition for Review and ordered the Notices of Disallowance (NDs) lifted.
In his lone dissent, Commissioner Roland Café Pondoc voted to affirm the NDs with finality, which would have meant requiring CAAP officials and employees to refund the entire amount.
The first MR filed by former CAAP director general Jim Sydiongco sought a reversal of the COA’s July 12, 2017 decision that upheld the disallowance of the P128.37 million Performance Enhancement Allowances (PEA) paid to agency personnel in 2012.
The second appeal was filed on January 24, 2022 by retired Lt. Gen. William Hotchkiss, former CAAP Director General, and other CAAP officers seeking reconsideration of a 2015 decision of the COA-Corporate Government Sector-Cluster 4 that sustained the disallowance against the P192.19 million achievement bonus for agency officials and employees in 2014.
Last was the Petition for Review filed by former CAAP OIC chief for Administrative and Finance and other officials concerning the disallowed payout of P38.62 million as a “recognition award” for CAAP employees in 201. This challenged the COA decision of June 24, 2015 which already had an Order of Execution back in 2016.
On all three rulings, the COA en banc held that the post facto approval obtained by the CAAP through the April 29, 2016 Memorandum of then Executive Secretary Paquito Ochoa Jr. cured the deficiency in the grant of the extra compensation.
“The payment of PEA for CY 2012 was disallowed principally on the ground that it was granted without authority. Considering that CAAP obtained a post facto approval from the OP through a Memorandum11 dated April 29, 2016 of Executive Secretary Ochoa, Jr., …the disallowances are rendered moot,” the Commission declared.
It took the same positions regarding the P192.19 million achievement bonus and the P38.62 million recognition award.
In his dissenting opinion, Pondoc cited the 2022 Supreme Court decision in the Philippine Charity Sweepstakes Office et al vs COA which rejected the post facto approval on the ground that it “violated budgetary and auditing laws.”
“Accordingly, the Achievement Bonus granted to CAAP officials and employees cannot be ratified through the expedient issuance of a memorandum, especially since it was made in violation of laws, rules and regulations,” he pointed out.
He reiterated the same stand relative to the P128.37 million Performance Enhancement Allowance grant and the recognition award.
Likewise, he noted that Ochoa’s memorandum was issued during an election year and conflicted with the provisions of the Omnibus Election Code that prohibits giving salary increases or remuneration during an election period.
“As the post facto approval of then President Aquino, contained in the memorandum of Executive Secretary Ochoa, was made nine days before the May 9, 2016 elections, the same falls within the election period ban, and is categorically proscribed under the above provision,” he added.
