COA disallows P49.6M productivity bonus to city hall employees
September 3, 2010 10:24 am
ILOILO CITY, Sept. 2 – The Commission on Audit (COA) has issued a Notice of Disallowance (ND) for the payment of Productivity Enhancement Incentive (PEI) amounting to P49.65 to the 1,655 officials headed by former city mayor and now city congressman Jerry P. Treñas and former city vice mayor and now city mayor Jed Patrick Mabilog and employees of the Iloilo City government in 2009.
ND No. 10-001-100-(09), dated Aug. 12, sent to city mayor Jed Patrick Mabilog showed that only P3,228,671.76 is allowable as PEI covering 45 percent personal services (PS) limitation and so the total amount of PEI disallowed is P46,424,328.24.
The ND was signed by COA State Auditor IV Ofelia T. Demegillo and State Supervising Auditor V Maria Gleda E. Lim.
City accountant Michelle Lopez said the COA ND showed that each regular employee is granted by the city an amount of P30,000 last December 2009. The PEI allowed by COA is only P1,950.74 and disallowed is P28,049.26 each employee.
However, the PEI ruling can be appealed within six months from receipt of COA notice last Sept. 1. Audit disallowances not appealed hereof shall become final and executory as prescribed under Section 48 and 51 of PD 1445, Lopez said.
COA maintains that the amount of P46.4 million was disallowed in audit because only P3.2 million was available to the local government unit for other PS costs based on the computation of its 45 percent Personal Services limitation.
The grant of PEI should have been subjected to the budgetary conditions and PS limitations in the LGU budgets pursuant to Sections 325(a) of Republic Act 7160 based on Item 3 of Local Budget Circular No. 2009-93 dated Dec. 17, 2009.
The reversion of the Calamity Fund amounting to P31,431,648 to the unappropriated surplus per Ordinance No. 2009-095 dated Dec. 16, 2009 for the payment of PEI was also contrary to Item b.4 of the IRR of Republic Act No. 8185.
COA said that any unexpended balance of the calamity fund should have been reverted to the unappropriated surplus for re-appropriation during the succeeding budget year.
Aside from Treñas and Mabilog, other officials who might be held liable for the transaction are former city administrator Melchor U. Tan, city treasurer Katherine Tingson and assistant city treasurer Mary Joan Montaño, city accountant Michelle Lopez, assistant city budget officer Joy Ann Toledo, Budget Officer IV Dionisia Gargalicana, city budget officer Ninda Atinado, new vice mayor Jose Espinosa III, city councilors Lyndon Acap, Ely Estante Jr., Jeffrey Ganzon, John Melchor Mabilog, Ma. Irene Ong, Nielex Tupas, and Perla Zulueta and former city councilors Eduardo Peñaredondo, Eldrid Antiquera, Julienne Baronda, Armand Parcon, Antonio Pesina Jr., and Edwin Plagata.
Also to be held liable are department heads and assistant department heads Elsie Segaya, Dr. Tomas Forteza, Dr. Julie Baronda, Jose Roni Peñalosa, Noel Hechanova, Benito Jimena, Alfredo Villanueva, Dr. Erlinda Gencaya, Romeo Caesar Manikan, Atty. Angelo Geremias, Karl C. Quimsing, Agustin Sangrador Jr., Engr. Raul Gallo, Edna Querubin, Dr. Urminico Baronda Jr., Josegil Parreñas, Atty. Edgardo Gil, Judge Amalik Espinosa Jr., Nelson Parreño and Thelma Golez, and more than 1,500 payee employees who received payment of PEI. (PNA) RMA/AJP/LCPendon
Comments