28 GOCCs ordered to return P626-M bonuses

[jamesbond]

28 GOCCs ordered to return P626-M bonuses
By Aurea Calica | Philippine Star – Sat, Nov 7, 2015

The Commission on Audit (COA) has ordered the return of more than P626 million in unauthorized bonuses, allowances and incentives paid by 28 government-owned and controlled corporations (GOCCs) to their officials and employees.

In a 2014 Annual Financial Report on GOCCs released on Oct. 31, the audit agency said the state firms violated the rules on the allowable salaries, allowances and bonuses for GOCC officials and employees.

The COA ordered the GOCCs to return the amount to the government through notices of disallowance.

The Philippine Economic Zone Authority (PEZA) recorded the biggest amount of unlawful cash releases for 2014 with P213.84 million, followed by Duty Free Philippines Corp. with P154.926 million.
The other GOCCs with overpaid allowances and bonuses are Metro Cebu Water District, P108.26 million; Philippine Postal Corp., P30.644 million; Bangko Sentral ng Pilipinas, P30.103 million; National Power Corp., P22.878 million; National Electrification Administration, P20.625 million; Human Settlements Development Corp., P15.203 million; Cagayan de Oro City Water District, P8.175 million; Philippine National Oil Co. Alternative Fuels Corp., P3.329 million; Metro Kidapawan Water District, P3.28 million; National Transmission Corp., P2.97 million; Butuan City Water District, P2.638 million.

Development Bank of the Philippines Data Center Inc., P1.984 million; Malaybalay Water District, P1.776 million; Food Terminal Inc., P1.169 million; Sibulan Water District, P1.095 million; Borongan Water District, P675,000; Industrial Guarantee and Loan Fund, P604,000; Metropolitan Waterworks and Sewerage System, P540,000;  Dumaguete City Water District, P480,000; People’s Credit and Finance Corp., P368,000; Baguio City Water District, P275,000; Philippine National Railways, P189,000; Philippine Center on Economic Development, P42,000; Metro Bangued Water District, P30,000; Tagoloan Water District, P25,000 and International Broadcasting Corp. 13 (IBC-13), not quantified.

For its part, Malacañang said the 28 GOCCs should heed the COA’s order to return the unauthorized allowances and other incentives paid to their officials and employees last year.

Deputy presidential spokesperson Abigail Valte said the COA’s policies on salaries and bonuses were strict.

Meanwhile, the Governance Commission for Government-owned and controlled corporations (GCG) has asked the state-owned firms to explain the unauthorized bonuses and allowances paid to their officials and employees.

The GCG said that under its Performance Evaluation System, GOCCs should come up with concrete plans to address COA audit reports.
GOCCs that fail to do so may be declared ineligible to receive performance incentives this year even if the firms achieve their performance targets, the GCG said.

The GCG, however, said local water districts, economic zone authorities, research institutions and the Bangko Sentral ng Pilipinas are not covered by the Performance Evaluation System under Republic Act 10149 or the GOCC Governance Act of 2011.