COA reviewing P28.8-M bonuses for PSALM employees

MANILA, Philippines - The Commission on Audit (COA) is reviewing the P28.8 million in bonuses – supposedly for exemplary performance – that all employees of the Power Sector Assets and Liabilities Management Corp. (PSALM) received from 2009 to 2013. 

In a report, state auditors said the granting of the bonuses to all PSALM employees was part of the firm’s Program on Awards and Incentives for Service Excellence (PRAISE).

COA said under the Civil Service Commission (CSC) rules, only employees with proven outstanding performance should have received the bonus.

The COA said the release of funds for the program has been suspended pending review.

“PRAISE is being defined as a system designed to encourage creativity, innovativeness, efficiency, integrity and productivity in the public service by recognizing and rewarding officials and employees, individually or in groups for their suggestions, inventions, superior accomplishments and other personal efforts which contribute to the efficiency, economy or other improvement in the government operations, or for other extraordinary acts or services in the public interest,” COA said, citing a PSALM circular.

“It is very clear from the aforequoted circular that PRAISE award is given only to individuals or group of individuals in recognition of the suggestions, inventions, innovations and other personal efforts which contribute to the improvement of government operations,” the COA report said.

State auditors have also directed the PSALM to submit a list of personnel “who have direct participation in the achievement/accomplishment of activities” that have made them deserving of the perks.

The bonuses amounted to P4.3 million in 2009, P4.6 million in 2010, P9 million in 2011 and P5.3 million in 2012 and in 2013.

PSALM, created in 2001 under the Electric Power Industry Reform Act (EPIRA), is primarily tasked to manage the orderly sale, disposition and privatization of the National Power Corp’s assets.