Ex-TRC chief ordered to return P14.6-M illegal benefits

MANILA, Philippines - The Commission on Audit (COA) has ordered former Technology Resource Center (TRC) director general Dennis Cunanan to return to the government P14.6 million worth of incentives unlawfully given to employees in 2011.

In a decision issued recently, the COA main office dismissed “for lack of merit” the petition for review filed by Cunanan questioning the Notice of Disallowance (ND) issued against him by the COA Makati City office in October 2012.

The subject of the ND was the payment of monthly 40 percent Omnibus Incentive Benefit (OIB) to TRC employees for 2011 totaling P14,695,097 under Cunanan’s term as its director.

The COA main office sided with its local office’s findings that the awarding of the incentives lacked the necessary approval of the Department of Budget and Management (DBM) and the Office of the President.

The COA further pointed out that under RA 6758 or the Salary Standardization Law of 1989, “all allowances and fringe benefits granted on top of the basic salary were (already) deemed integrated into the standardized salary rates.”

“Thus, an allowance or benefit in addition to those not integrated into the standardized salary rates requires prior approval by the DBM. Accordingly, the BOD (Board of Directors) of TRC does not have an unbridled and plenary power to determine the salary, benefits and allowances of its personnel,” the COA ruling read.

“It is only the DBM that has the mandate to classify positions and determine the appropriate salaries for specific position classes and review the compensation benefit programs of agencies,” it added.

The COA noted that the TRC, through a letter to the DBM secretary dated May 11, 2011, sought the inclusion of the OIB in its 2011 Corporate Operating Budget, but the DBM denied the request, citing the Salary Standardization Law.

“Despite the lack of approval from the DBM, TRC continued to pay the OIBs to its officers and employees. Clearly, TRC disregarded the provisions of the above-cited law,” the COA said.

For this reason, COA denied Cunanan’s petition for review “for lack of merit.”

“Accordingly, Notice of Disallowance dated Oct. 23, 2012, on the payment of the monthly 40 percent Omnibus Incentive Benefit for calendar year 2011 in the total amount of P14,695,097.84, is hereby affirmed,” the ruling added.

Cunanan was dismissed by the Office of the Ombudsman in connection with his alleged involvement in the multibillion-peso fund scam.

He is facing cases at the Sandiganbayan as co-accused of several lawmakers in the alleged misuse of their Priority Development Assistance Fund, commonly known as pork barrel, channeled to TRC and some fake non-government organizations.