Villarete announces: No more extra insurance for airport workers

CEBU, Philippines - Mactan Cebu International Airport (MCIA) General Manager Nigel Paul Villarete yesterday announced that they already complied with the order of the Commission on Audit (COA) to stop granting additional health care insurance to all officials and employees of the airport.

For the past several years, the state auditors have issued several notices of disallowance against the airport officials for ignoring the prohibition against another private health care insurance outside that of the Philippine Health Insurance Corporation (PhilHealth).

The Department of Budget and Management (DBM) said that using government funds for a separate health care insurance program would mean double provision of appropriation for the same purpose, which is contrary to the principle of prudent spending.

Records showed that last January 7, 2010, COA again issued another notice of disallowance for the MCIAA officials not to pay Fortune Medicare Inc. the amount of P4,215,505 for the same questionable expenditure in 2009.

The main argument of the MCIAA officials is that the MCIAA Board has the power under its Charter to provide benefits to its employees.

Villarete was out of the office yesterday so he could not thoroughly discuss the matter. Villarete assumed as airport general manager last October 26, 2010.

Meanwhile, COA also questioned the granting of anniversary bonus equivalent to one month to two months salaries, but not less than P10,000 per employees. Such is “without basis,” according to COA.

The MCIAA Board argued that it has authority to approve such benefits for all officers and employees of airport.

MCIAA spent P19,117,762 for the anniversary bonus in 2008 and P19,990,000 in 2009. COA has yet to check the correct amount spent for the same purpose in 2010.

COA appealed to the airport officials to refrain from granting personnel benefits which are contrary to existing laws, rules and regulations, and those which are explicitly disallowed in the Corporate Operating Budget.

The state auditors also observed that the airport officials spent P2,237,000 for discretionary and intelligence expenses that were not supported with receipts and other documents. — (FREEMAN)