COA disallowance vs. PCGG stays

The Commission on Audit has affirmed its previous notice of disallowance on an P8.34-million employees’ incentive at the Philippine Commission on Good Governance.

In the 2019-29 decision, state auditors dismissed the petition for review filed by PCGG executives—Richard Amurao, Vicente Gengos Jr., Maria Luisa Narvadez, Efren Bracero, et al.—citing  P8.34 million in calamity assistance, gift checks, goodwill incentive and collective negotiation agreement incentive released to the employees in 2012 and 2013 was illegal for having no legal basis.

The commission ordered the PCGG officials to return the money to the government.

The grant of the collective negotiation agreement incentive was allowed only to rank-and-file employees under the law as well as under Item No. 339 of Budget Circular No. 2012-4 issued on Dec. 17, 2012, CoA said.

Such benefit was given to employees under contract of service/job orders, CoA chided.

“The budget circular neither states nor implies that expense entitlement personnel, special legal counsels and consultants may receive said incentive,” it said.

“Hence, the payment, of CNA Incentive to these personnel of PCGG is considered irregular,” it added.

“Hence, the calamity assistance, gift checks, and Goodwill Incentive is deemed to be integrated in the standardized salary rates, pursuant to Section 12 of Compensation and Position Classification Act,” the commission noted.