COA flags 'excessive allowances' of Calida and OSG lawyers

MANILA, Philippines — The Commission on Audit has flagged the “excessive allowances” received by Solicitor General Jose Calida and 15 other lawyers of the Office of the Solicitor General in its 2017 report.

According to a report released by government auditors, Calida and 15 state lawyers received allowances beyond what is allowed under the law. 

The report noted that Calida earns P1,827,900 a year, but for 2017, the government’s chief legal counsel received P8,376,360.28 in allowances. This puts Calida’s excess of allowance to P7,462,410.28.

“The receipt of honoraria is not without limitations,” the COA stated.

The computation was based on Republic Act 9417 or the OSG law that allows the officials of the said office to receive honoraria and allowance but a COA circular limits the allowances to just 50 percent of their respective basic annual salary.

“Laws, rules and regulations need to be harmonized in their implementation. While RA No. 9417 granted authority to OSG lawyers to receive honorarium, COA Circular No. 85-25-E puts limitation in the receipt thereof,” the report reads.

The COA noted that the allowances “were directly remitted to OSG lawyers but not reported to [the Financial Management System].”

In its 2016 report, the COA also flagged allowances received by Calida and his predecessor, Florin Hilbay.

The state audit agency stated that Hilbay received an excess allowance of P4.66 million in 2016—when he served as solicitor general from January to June. Calida, who took over his position, received P1.12 million.

Both Calida and Hilbay argued that the state lawyers are allowed to receive allowances, as stated by the RA 9417. Hilbay argued that the COA could not countermand a law as it is an official act of the Congress.

COA noted that the matter is currently under appeal, but it stressed: “Pending resolution from the Commission on Audit, the OSG officers and employees who rendered legal services and advises to client agencies should have collected the amount of up to 50 percent of their basic salary.”

The state audit agency recommends that the OSG “refund the excess amount received and deposit” it to the agency’s trust fund.

This is the latest controversy to hit Calida as he is currently in hot water for his stock ownership of Vigilant Investigative and Security Agency Inc. that has contracts with several government agencies. The government’s top lawyer has insisted that he sees no conflict of interest in the matter.

RELATED: What we know so far: Vigilance on Calida's security agency

— Kristine Joy Patag