COA seeks explanation of P4.1-million IA bonuses to employees

MANILA, Philippines – The Commission on Audit (COA) has sought an explanation from the Intramuros Administration (IA) for giving more than P4.1 million in additional compensation to its employees last year.

State auditors reported that IA’s grant of incentive bonuses and calamity relief allowances was unauthorized.

They explained that the release of P4,150,279 in funds in September and November 2009 was “not supported by a specific law or authority allowing such allowances.”

“Furthermore, charging of such benefits to the Revolving Fund under Other Personnel Benefits was in violation of Section 15 of PD No. 1616,” the COA said referring to the law that created the IA in 1979.

State auditors said that the review and verification of paid transactions of the Revolving Fund for 2009 revealed that in September and November 2009, a Calamity Relief Allowance of one month salary and Incentive Bonus of two months salary were granted to all employees, including the IA administrator.

Records showed that 53 regular employees received additional compensation in the total amount of P3,189,503 while 30 casual employees received P960, 776.

State auditors said the IA management failed to cite or present any law or authority as basis for the release of incentive bonuses and calamity relief allowances.

“Further, the Revolving Fund was used to pay the said benefits contrary to Section 15 of PD 1616, which provides that revenues under that fund shall be automatically appropriated to cover expenses incurred in commercial operations of IA,” the audit report said.

“We recommended that management submit the legal basis for granting the Calamity Relief Allowance and Incentive Bonus, otherwise, (they should) refund the amount received.”