Ex-CAAP execs told: Return P192 million ‘irregular’ bonus

MANILA, Philippines — The Commission on Audit (COA) has ordered former officials and employees of the Civil Aviation Authority of the Philippines (CAAP) to return the “irregular” achievement bonus that they received in 2014.

The COA recently released a copy of the Jan. 24 decision, which denied the petition for review filed by former CAAP director general William Hotchkiss III and five other officials regarding the notices of disallowance issued on the payment of the bonus totaling P192,188,814.69.

Records showed that on April 11, 2014, the CAAP board of directors issued a resolution granting each employee, regardless of employment status, an achievement bonus to be charged against the agency’s corporate funds.

The audit team issued notices of disallowance after it found that the resolution violated laws and regulations.

State auditors also found that the achievement bonus was not included in the 2014 CAAP corporate operating budget, deeming it an irregular expenditure.

In 2015, then CAAP officials led by Hotchkiss appealed the notices, saying the bonus was granted pursuant to the agency’s fiscal autonomy.

They also claimed that the budget used was validly sourced from corporate savings.

The Corporate Government Sector Cluster 4 denied the appeal, citing laws stating that the grant of compensation and other benefits require approval from the President.

Aside from Hotchkiss, also held liable were Concordia Pagkaliwangan, officer-in-charge of the administration and finance service; Jocelyn Ching, finance department chief; Raul Eusebio, accounting division chief; Rosario Nalungon, budget division chief and Fe Evangelista, budget officer.