Cebu ordered to return P29.9 M in excess bonus

MANILA, Philippines - The Commission on Audit (COA) has ordered the provincial government of Cebu to require its officials and employees to return the more than P29.9 million in excess bonuses granted to them last year.

In a report, state auditors said the money should be returned to the government, as it was more than the law allowed.

Records show that the provincial government granted its employees and officials productivity enhancement incentives (PEI) amounting to at least P22,000 each last year.

State auditors said the amount is more than the P5,000 maximum productivity bonus provided under Executive Order No. 80.

“The total expenditure for the PEI amounted to more than P37 million, instead of P7.5 million only or an excess of P29 million,” the COA said.

Cebu officials cited a circular of the Department of Budget and Management, which states that the Sangguniang Panlalawigan should be the one to determine PEI rates, depending on the financial capability of the local government.

It said there was nothing in the circular which limits the PEI to P5,000 and the grant of the bonus was made in good faith and according to the law.

The COA dismissed the provincial government’s argument and ordered the excess amount returned to government coffers.