MCWD defies COA, SC ruling

CEBU, Philippines — The Commission on Audit (COA) has told the Metropolitan Cebu Water District (MCWD) anew to settle its disallowances amounting to over P50 million after it found out that the water district has continued giving these allowances to employees, defying a Supreme Court ruling.

In its 2020 audit report, COA said it found out that the P50.232 million it has disallowed with finality, which was affirmed by the Supreme Court, was not recorded in MCWD’s receivable account as of December 31, 2020.

The subject of disallowances covers the P20.8 million payment of ISO certification incentive; P10.8 million payment of rice and housing allowances; and P18.5 million payment of utility allowance, school opening bonus, Christmas bonus, and medical and hospital expenses to MCWD employees.

These disallowances have already attained finality of decision before the commission per COA Decision No. 2014-445 dated December 29, 2014.

MCWD has filed a petition for certiorari before the Supreme Court but the High Tribunal still affirmed the COA disallowances per SC Resolution dated September 3, 2019.

However, COA said that based on the financial statements submitted by the accounting department of MCWD, the receivables-disallowances/charges have zero balance as of December 31, 2020 despite receipt of the SC resolution dated January 15, 2020 denying with finality the MCWD’s motion for reconsideration of SC’s September resolution.

Moreover, COA said that examination of MCWD’s disbursement vouchers for 2020 showed that there were still unauthorized allowances and benefits granted to the water district’s officials and personnel amounting to P14 million.

This amount covers the P7.6 million rice and housing allowance, P1.7 million medical benefits, P810,000 burial benefits, and P3.8 million Christmas bonus.

“Notice of Disallowance will be issued for these allowances and benefits paid in CY 2020 as the said payments were similar to the disallowed benefits/allowances which had already attained finality of decision and were affirmed by the Supreme Court,” COA’s report reads.

The MCWD management averred that the granting of benefits to its employees was sanctioned by a resolution issued by its Board of Directors, which is within the board’s powers in accordance to Presidential Decree No. 198 or the “Provincial Water Utilities Act of 1973”.

But COA said the MCWD management could not claim good faith considering it is fully aware of previous decisions disallowing the grant of these benefits and allowances due to lack of appropriate legal basis.

COA reiterated its prior years’ recommendation for the management to require the settlement of the disallowance by the persons found liable thereto, and also refund the corresponding amounts of benefits and allowances received in 2020.

MCWD said it will refer the matter to its executive committee for final decision and directive. — JMO (FREEMAN)