COA: Return P1.95M bonus

CEBU, Philippines - Officials and employees of the municipality of San Fernando, Cebu were asked to refund P1.95 million in excess amount of the Productivity Enhancement Incentive  they received last year.

The Commission on Audit made the recommendation after learning that what was released was more than the amount allowed per Executive Order No. 80, dated July 20, 2012.

EO. 80 provides that the P5,000 PEI shall continually be granted across-the-board, in accordance with Department of Budget and Management guidelines.

DBM Budget Circular No. 2013-3 dated November 21, 2013, which implements E.O No. 80, sets a maximum PEI of only P5,000.

In 2013, however, the town granted to 163 officials and employees the PEI in varying amounts that ranged from P5,500 to P36,000, for a total of P2.76 million.

COA deemed as irregular disbursement of government funds P1.95 million of the total amount.

In its 2013 audit report, COA said the DBM could not grant to local government units an amount greater than what was set by President of the Philippines and to be uniformly paid to other government agencies; hence, only P5,000 shall be given as PEI to each LGU employee.

“The granting of PEI in excess of the maximum amount allowed per Executive Order No. 80, dated July 20, 2012 resulted in the irregular disbursement of government funds in the total amount of P1,944,500,” COA said.

COA recommended that each of the concerned officials and employees be directed to refund the P500, or the P6,000, or the P16,000, or the P21,000, or the P31,000 in excess amount that they received; otherwise, all those who authorized the payment shall be held personally liable.

“A Notice of Disallowance will be issued in this regard,” state auditors said.—(FREEMAN)