PhilHealth told: Return P247.8M in unauthorized allowances

MANILA, Philippines — The Commission on Audit (COA) has ordered with finality the return of P247.883 million worth of unauthorized allowances and benefits that the Philippine Health Insurance Corporation (PhilHealth) granted to its official and employees from 2007 to 2009.

 

In two separate decisions dated Dec. 27 and Dec. 28, 2016, released to the media Sunday, the Commission Proper composed of Chairman Michael Aguinaldo and Commissioners Jose Fabia and Isabel Agito affirmed the 13 notices of disallowance (NDs) issued by COA's Corporate Government Sector (CGS) against PhilHealth in 2008 to 2010.

 

The COA Commission Proper denied the appeal filed by former PhilHealth President and Chief Executive Officer Eduardo Banzon on 11 of the NDs as the petitions for review were filed beyond the reglementary period of six months or 180 days upon the receipt of the decision as provided under the COA rules of procedure and Presidential Decree 1445 or the Government Auditing Code of the Philippines.

 

“The NDs, not having been appealed from within the prescribed period, became final and executory, pursuant to Section 51 of PD No. 1445,” the COA Proper said.

 

“The right to appeal is a purely statutory right, and he who wants to exercise it must comply with the statute,” it added.

 

Meanwhile, Banzon's appeal for the two other NDs issued by the COA-NGS was denied by the Commission Proper for being “devoid of merit.”

 

The Commission Proper dismissed Banzon's argument that the grant of Shuttle Service Allowance (SSA) to officials and employees in 2009 amounting to P2.244 million is part of the inherent power and autonomy of the PhilHealth Board as provided under Republic Act 7875 or the National Health Insurance Act, and that the SSA grant was in accordance with the Collective Negotiation Agreement (CNA) executed between the PhilHealth and the PhilHealth Employees Association (PHICEA).

 

In its ruling, the Commission Proper said that while the PhilHealth Board was given authority to grant certain allowances and benefits to its officials and employees, such grant still requires the approval of the Office of the President (OP) in accordance with Section 3 of Memorandum Order No. 20 (MO 20) Series of 2001.

 

Section 3 of MO 20 states that “any increase in salary or compensation of GOCCs (government-owned and controlled corporations) and GFIs (government financial institutions) that are not in accordance with the SSL (Salary Standardization Law) shall be subject to the approval of the President.”

 

The Commission Proper further pointed out that what was agreed upon in the CNA between the PhilHealth management and the PHICEA was the provision of shuttle service vehicle and not shuttle service allowance.

 

“Thus, since the grant of SSA is not the same as the establishment of a shuttle service for PhilHealth’s officers and employees, it stands to reason that the former is a new or additional benefit which is prohibited by law,” the COA said.

 

Meanwhile, the COA also dismissed Banzon's argument that the grant of efficiency gift (EG) to employees in 2007 amounting P16.275 million does not require the approval of the OP still in accordance with the autonomy of PhilHealth under RA 7875.

 

“To reiterate, the requirement of a prior approval from the Office of the President does not remove from the BOD (Board of Directors) the power to fix the compensation and allowances of PHIC personnel but merely requires that these be submitted to the President of the Philippines, through the DBM, in order to determine compliance with the law,” the COA said.

 

“All told, there is no reason to reverse the assailed decision as it is clear from the foregoing that the benefits granted by PHIC were not in conformity with the required laws and regulations,” it added.