COA flags P710.59 M allowances of GOCC execs

MANILA, Philippines — The Commission on Audit (COA) has flagged at least P710.59 million in compensation and allowances that various government-owned and controlled corporations (GOCCs) have granted to their officials and employees in 2017.

In its “2017 Annual Financial Report for Government Corporations” recently published on its website, the COA said a total of P593.59 million in compensation and allowances were paid by 17 state firms to their board directors, officers, regular employees, contractual employees and job order employees, without any legal basis and in violation of the COA and Civil Service Commission (CSC) rules.

The benefits that the COA found to have been granted without any basis or justification include compensation, additional compensation, Personnel Economic Relief Allowance (PERA), retirement benefits, gratuity benefits, separation pay, financial assistance and Collective Negotiation Agreement (CNA).

Topping the COA’s list of GOCCs that granted questionable perks were the National Irrigation Administration with P250.16 million, Land Bank of the Philippines with P196.25 million and Intercontinental Broadcasting Corp. (IBC 13) with P48 million.

Also called out by the COA were the Government Service Insurance System (P22.69 million), National Home Mortgage Finance Corp. (P22.17 million), National Electrification Administration (P19.96 million), Philippine Center for Economic Development (P10.8 million), People’s Television Network Inc. (P10.49 million), APO Production Unit Inc. (P3.7 million), Philippine National Construction Corp. (P2.6 million), National Dairy Authority (P2.53 million) and Trade and Investment Development Corp. of the Philippines (P2.06 million).

“Submit documents indicating approval by the Office of the President as required under Presidential Decree No. 1597/by the Governance Commission for GOCCs; or discontinue the payment of compensation/allowances/benefits/incentives in the absence of legal bases or authority to grant the same,” the COA told the concerned state firms.

In the same report, the audit body also questioned four state firms’ excessive payments of representation and transportation allowance (RATA), gasoline and telephone expenses as well as overtime expenses to their officials and employees totaling P117 million.

The Manila International Airport Authority accounted for much of the questionable payments at P115.88 million, while the Nayong Pilipino Foundation Inc. and Food Terminal Inc. were also flagged for P851,000 and P271,000 payments, respectively.

The Light Rail Transit Authority was also mentioned but the amount of its questionable payment was not disclosed.

The COA directed the four state firms to “stop the practice of granting reimbursable gasoline allowance” and require the concerned officials and employees to refund the RATA that they received in excess of the amount allowed by the Department of Budget and Management (DBM).

The COA said the four state firms must also allow their officials and employees to choose or upgrade their mobile phones and avail themselves only of units that come with a plan to avoid additional mobile load expenses.

COA said the GOCCs must also obtain approval of DBM for the grant of higher overtime pay beyond the standard rates.