THE Commission on Audit has ordered the Department of Agrarian Reform in Region 7 in Cebu City to return P14.18 million taken out of the Comprehensive Agrarian Reform Program to pay themselves unauthorized allowances and bonuses in 2007.
In an April 7 decision, CoA Chairman Michael Aguinaldo, and Commissioners Jose Fabia and Isabel Agito affirmed the validity of 14 notices of disallowance issued against DAR-Region 7.
CoA’s Commission Proper ordered the prosecution and litigation office to forward records of the audit to the Office of the Ombudsman for investigation and possible criminal indictment against those who approved the transaction.
Those held culpable were DAR-Region 7 assistant regional director Nevino Ardente, finance officer Araceli Adolfo, budget officer Cirila Bandico, bookkeeper Fe Lambujon, accountant Evelio Ouano, cashier Detta Tibay, and officials and employees who received the extra compensation.
Covered by the CoA order for reimbursement to CARP were P13.84 million paid out as collective negotiation agreement or CNA incentives and performance bonuses, and another P200,000 released as medical allowances.
“The grant of CNA incentives and performance Bonus incentive was illegally charged against the agrarian reform fund or Fund 158, which is a trust fund. With regard to the grant of medical allowance using Fund 101, the said grant violates laws, issuances and directives (including) the General Appropriations Act for Fiscal Year 2007, and Department of Budget and Management Circular 2001-03,” the CoA’s report read.
The commission cited 11 of the 14 appeals on the disallowance were filed by DAR officials beyond the six-month period allowed for motions for reconsideration.
“Appellants did not offer any plausible explanation for the delay in the filing of the appeal. Thus this Commission finds no compelling reason to justify the relaxation of the rules,” it said.
“It is noteworthy that the Comprehensive Agrarian Reform Program is intended to advance the welfare of the landless farmers, and farm workers in order to promote social justice.
“The use of CARP Funds for the grant of medical allowance, CNA incentives, and performance bonuses to DAR officials and employees is not among the purposes and intents of the fund. Thus, the payment of said benefits has no legal basis,” the commission added.