P8.9 million hazard pay for Minglanilla village execs, workers 'irregular'

CEBU, Philippines —  The Commission on Audit (COA) has asked barangay officials and employees of Minglanilla town in Cebu to refund the hazard pay they received last year totaling to P8.9 million.

In its 2020 audit report, COA deemed irregular the payment of hazard pay to 546 barangay officials and employees.

The recipients were barangay captains, councilmen, youth officials, barangay secretaries and treasurers, tanods (watchmen), barangay health workers, utility workers, gender and development focal persons, maintenance drivers, day care workers, barangay nutrition scholars, lupon members, COVID-19 task force, and street sweepers, among others.

“The payment of the hazard pay to barangay officials and employees constitutes irregular disbursements considering that they are not considered as officials and employees of the Municipality in violation of Item 4 of DBM Budget Circular No. 2020-1,” the report read.

COA said the municipal government should demand a refund from the recipients.

The town was also told to collect the amount, otherwise the budget disbursed will be disallowed in audit.

Post audit of the municipality’s transactions showed various cash advances for the payment of hazard pay to barangay officials and employees.

Moreover, upon review of the documents, the state auditor said there were only 12 out of 19 barangays with supporting documents related to the payment of hazard pay.

The documents, COA said, failed to coincide with the total disbursements in the reports of checks issued (RCI) with a difference of P3.4 million.

COA explained that the municipality and the barangay have their own respective Sanggunian and operate as a separate budgeting unit subject to budgetary limitation by law and Section 5 of Administrative Order No. 26, provides that such shall be decided by their respective Sanggunian, subject to their respective budgetary limitation.

The municipality informed COA that they paid hazard pay to the barangay officials and employees since they were on duty during the pandemic.

The town, however, assured COA to revisit the related circular in order to assess such a transaction.

COA pointed out that DBM Budget Circular No. 2020-1 clearly indicates that an agency can only pay hazard pay to those who are occupying regular, contractual or casual positions, or are workers engaged through contract of service, job orders, or other similar work arrangements. — KQD (FREEMAN)