COA questions Baguio City employees' P25M bonus

BAGUIO CITY, Philippines – Baguio City executives and employees receiving bonuses of P25 million are causing raised eyebrows from the Commission on Audit (COA).

In questioning the productivity incentive bonus released to City Hall employees from January to June as well as proposed similar incentives by the end of the year, the COA, in its Audit Observation Memorandum 13-14 issued last Oct. 21, noted deficiencies and errors on the bonuses totaling P25 million. The bonus was granted to all officials and employees of the city government for the first half of the year, contrary to Administrative Order 161 series of 1994 prohibiting the city to establish and authorize a separate productivity and performance incentive award.

COA stressed that the released amount is an irregular disbursement excluded from those enumerated in the Civil Service Commission (CSC)-approved Agency Program on Awards and Incentives for Service Excellence (PRAISE).

The city government, COA said, has already granted P2,000 regular performance incentive bonus to each employee totaling to P2.3 million and the Productivity Incentive Bonuses granted under the PRAISE program. These were reportedly illegal as they do not have any legal basis or authority, hence an irregular expenditure.

The local COA here led by Audit Team leader Milagros Nibaten and officer-in-charge Supervising Auditor Shalymar Garcia have asked Mayor Mauricio Domogan, the PRAISE and local finance committees, Sangguniang Panlungsod and City Accountant Antonio Tabin to show them the granting of the bonuses were legal otherwise the recipients of the bonuses have to return them 15 days upon receipt of the memorandum.

COA required city officials and employees to ensure adherence to Administrative Order 161 series of 1994 and CSC-approved agency PRAISE benefits.

Domogan, however, still stands by in pushing for the bonuses of employees explaining they have excellently worked for it. He said for the good work done, the city has no obligations to anyone or any group to pay and the city is in good financial standing.

Like the COA, City Budget Officer Leticia Clemente following the audit report agreed to disallowing the release of some P60 million proposed bonuses for July to December, citing the lack legal basis for the bonuses.

Earlier, city councilors approved the performance incentive bonuses through Ordinance 68 series of 2013, explaining in the local law, “there is nothing wrong with the local government granting additional benefits to the officials and employees.”

The ordinance also wanted to provide the basis for the issuance of the incentives citing the exemplary performance displayed by City hall employees in delivering basic services and distinguished professionalism in government service.

City employees account for some 1,300.

Special achievements and excellent ratings received by the city government from conferring bodies including the Department of the Interior and Local Government, CSC and Bureau of Local Government Finance for various departments were among those cited to support the grant of the bonuses.