Mandaue City to fight P37M disallowance by COA

CEBU, Philippines - The Mandaue City government will appeal with the Commission on Audit in Manila the “notice of disallowance” it was issued with over the granting of P36.5 million in cash incentives to its workers, believing it has no legal basis.

The amount was distributed as Charter Day and yearend bonuses to the city’s job order, clean and green, and health and nutrition workers.

City Administrator James Abadia said that once they received the official notice of disallowance, they would immediately ask for reconsideration, especially on the directive that the city refunds the amount.

Abadia said they are wondering why COA disallowed the giving of the bonuses when the same cash incentives were given to the same workers the year before.

He said the disallowance has no legal basis at all because when the city granted the bonuses these was covered with corresponding City Council-approved ordinances.

“Kami naa mi gisaligan nga ordinansa allowing for the distribution of cash incentives.  For me ang ordinansa is valid until declared by the court null and void ug usa na sa among mga argumento sa amo unyang apelar sa COA Manila,” Abadia said.

The granting of cash incentives in 2013 was authorized by City Ordinances 13-2013-838 (July 24 2013) and 13-2013-872 (November 13, 2013).

COA -7, however, said job order employees are covered by COA rules and not by the Civil Service Law.

COA said the city made a mistake in granting the cash incentives as it circumvented the job order agreements the mayor, representing the city, executed with the workers.

COA also said that “nothing is stipulated in the JOAs that the LGU would give cash incentives to the workers, except for payment of their services equivalent to the daily rates specified therein.”  (FREEMAN)