COA to NIA: Return P250-M cash incentives

MANILA, Philippines — The Commission on Audit (COA) is demanding the refund of more than P250.1 million in cash incentives granted to officials and employees of the National Irrigation Administration (NIA) last year.

The state auditors, in a 2017 audit report released recently, said the payment of Viability Incentive Grant (VIG) to regional office executives and personnel was without legal basis.  

COA stressed the general provisions of the General Appropriations Act (GAA) prohibit the grant of honoraria and other allowances, except those specifically authorized by law.

State auditors noted the rules also “prohibit the grant of food, rice, gift checks, or any form of incentive/allowances except those authorized via AO (Administrative Order) by the Office of the President.”

Despite such law and regulations, NIA regional offices allegedly granted cash incentives in 2017 in the total amount of P250.161 million.

“The payment of VIG was without approval from the President of the Philippines, thus contrary to Section 12 of RA 6758 dated Aug. 21, 1989,” COA said.  

“It is worth mentioning that previous VIGs granted by NIA to its officers and employees in various (regional offices) had already been disallowed in audit and the Notices of Disallowance (NDs) were affirmed by the Office of the Cluster Director, Cluster 5, Corporate Government Sector, due to lack of legal basis,” the audit team added.

The COA report said the payment of cash incentives last year should be stopped and refunded for lack of legal basis.

During discussions with the audit team, NIA’s administrative department manager said they requested for approval of the VIG from the Office of the President in 2016 but the request had not been approved as it was submitted during election time. 

The NIA administrator emphasized that if such request is pending, no payments should have been made which is why a memorandum will be issued to the regional offices to stop such payments.