THE Commission on Audit (COA) has affirmed the disallowance slapped in 2014 against the illegal payout of cash incentives to officials and employees of Laguna Water District in 2011 and 2012 totaling P12.37 million.
In its five-page decision, the COA Commission Proper denied a petition for review filed by Laguna WD executives led by general manager Pantaleon Tabanao seeking the lifting of the notices of disallowance.
Tabanao was among the individuals held liable by auditors for the disallowance together with assistant general manager Margie Oficial, Board of Directors (BOD) members Ramon de Villa, Carlos Vega, Marina San Agustin, Elenita Ramos, and Wilfreda Litan; internal auditor Anselma Rodriguez, accounting and finance department manager Merlita Estenor, and accounting division manager Arnold Tolentino.
In their appeal, the group claimed the distributed sums was not an allowance but an award under the Program on Awards and Incentives for Service Excellence (PRAISE) which is supposedly sanctioned by the Civil Service Commission (CSC).
The audit team and the supervising auditor countered that the cash stipend must be considered additional compensation that is prohibited under RA 6758 or the Salary Standardization Law (SSL).
In its ruling, the COA Commission Proper sustained the auditors’ stand.
“The amount of P12,370,603.67 was disallowed on the ground that the LWD granted various incentives to its officials and employees in violation of Section 12 of RA No. 6758. The SSL prohibits the grant of additional allowances unless they fall under the enumerated exceptions,” the commission declared.
It held that the contention that the cash releases were made under PRAISE was likewise untenable in the absence of proof that the money came from savings generated from inventions or superior accomplishments.
“It is not enough that the PRAISE of LWD was approved by the CSC. Other conditions … must be satisfied. Otherwise, the grant of incentives has no sufficient legal basis making the disbursements irregular,” the commission pointed out.
It clarified that the obligation to refund the full amount falls on ranking officials who were directly responsible for approving and receiving the disallowed incentives.
On the other hand, rank-and-file employees’ liabilities are limited only to the amount they actually received.
