COA: Return excess productivity bonus

CEBU, Philippines - The Commission on Audit is asking all concerned local officials and employees to refund the amount in excess of the P5,000 limit of the Productivity Enhance Incentives (PEI) they received last year.

In its 2013 audit report, COA observed the “irregular and excessive” disbursement of PEIs, in violation of Executive Order No. 80 as implemented by Budget Circular No. 2013-3 dated November 21, 2013.

President Benigno S. Aquino III issued on July 20, 2012 EO No. 80 to motivate higher performance and greater accountability in the public sector and ensure accomplishment of commitments and targets, which are specified under the 5 Key Result Areas laid down in EO No. 43 and in the Philippine Development Plan 2011-2016.

Section 1 of EO No. 80 provides that a P5,000 PEI shall continually be granted across-the-board, in accordance with the guidelines issued by the Department of Budget and Management.

Tabuelan, Cebu, however, released a total of P783,000, or P18,000 each for its 42 officials and employees and P9,000 each to three newly elected officials.

The municipality explained that bonus was based on DBM Circular No. 2013-3 dated December 15, 2013 whose conditions they allegedly religiously followed.

In the said Budget Circular, Section 9 specifically provided the guideline for the granting of PEI to local government unit (LGU) employees. 

The section stated that a one-time PEI shall be granted to employees in the LGU at rates determined by the respective sanggunian, depending on the LGU’s financial capability and subject to conditions as enumerated under the same section of the Budget Circular.

The town cited the same reason when it disbursed P740,000 as PEI to officials and employees at P10,000 each.

Balamban town also disbursed P5.95 million for PEI at various amounts to each of the officials and employees.

Compostela town, on the other hand, granted P17,000 each, or a total of P1.2 million, to regular, contractual, casual employees and to either appointive  or elective officials of the municipality.

The municipality claimed it has requested President Aquino that it be allowed to give additional cash gifts to all employees on top of the usual amount it extends.

The request was reportedly forwarded to Budget Secretary Florencio Abad.

“In the light of the local fiscal autonomy of LGUs, each sanggunian is given the flexibility to adopt different rates for their personnel, which may be lower than, equal to, or higher than the prescribed amount of P5,000.00, depending on their financial capability. However, the grant of PEI is subject to availability of funds and to the PS limitation under the Local Government Code.  Hence, the Sanggunian Bayan may appropriate additional or higher amount of PEI, in lieu of the additional Cash Gift for its personnel, subject to availability of funds,” the municipality quoted Director Edgardo M. Macaranas, OIC assistant director of DBM’s organization, position classification and compensation nureau, in his reply.

However, COA believes that t Budget Circular No.2013-3 cannot supersede Executive Order 80.

The audit team maintains that in calendar year 2013, the governing rule on the granting of PEIs at a maximum rate of P5,000.00 is DBM BC No. 2013-3 dated November 21, 2013, which implements E.O. 80 dated July 20, 2012. (FREEMAN)