MANILA, Philippines – Voting 2-1, the Commission on Audit (COA) granted three separate appeals filed by former Civil Aviation Authority of the Philippines (CAAP) officials to lift disallowed cash allowances and bonuses amounting to P359.19 million.
On a majority of two votes, COA chairperson Gamaliel Cordoba and Commissioner Mario G. Lipana granted the former CAAP officials’ two motions for reconsideration (MRs), as well as a petition for review, and ordered the notices of disallowances (NDs) lifted.
Commissioner Roland Café Pondoc dissented and voted to affirm the NDs with finality. If he was not the lone dissenter, CAAP officials and employees would have had to refund the entire amount.
Former CAAP director general Jim Sydiongco sought the reversal of COA’s July 12, 2017 decision that upheld the disallowance of the P128.37 million-performance enhancement allowances (PEA) that were disbursed to personnel in 2012. This was the first MR.
Another former CAAP director general, William Hotchkiss, together with other CAAP officers, filed the second appeal on January 24, 2022. They sought reconsideration of a 2015 decision of the COA-Corporate Government Sector-Cluster 4, which sustained the disallowance against an “achievement bonus” worth P192.19 million for agency officials and employees in 2014.
Other CAAP officials filed the petition for review for the disallowed payout of P38.62 million for a “recognition award” for CAAP employees. It challenged the June 2015 COA decision, which had an execution order in 2016.
The COA en banc held that the post facto approval obtained by the CAAP through an April 2016 memorandum of then-executive secretary Paquito Ochoa Jr. cured the deficiency in the grant of the extra allowances. This opinion applied to all three rulings.
“The payment of PEA for CY 2012 was disallowed principally on the ground that it was granted without authority. Considering that CAAP obtained a post facto approval from the OP [Office of the President] through a Memorandum 11 dated April 29, 2016 of Executive Secretary Ochoa, Jr.…the disallowances are rendered moot,” the COA said.
In his dissenting opinion, Pondoc cited the Supreme Court ruling for the Philippine Charity Sweepstakes Office et al vs COA case in 2022, which rejected the post facto approval on the ground that it “violated budgetary and auditing laws.”
“Accordingly, the achievement bonus granted to CAAP officials and employees cannot be ratified through the expedient issuance of a memorandum, especially since it was made in violation of laws, rules and regulations,” said Pondoc.
Pondoc’s views applied to all three grants.
He also noted that Ochoa’s memorandum was issued on an election year, which made it conflict with the Omnibus Election Code, which prohibits giving salary increases or remuneration during election time.
“As the post facto approval of then-president [Benigno Aquino III], contained in the memorandum of Executive Secretary Ochoa, was made nine days before the May 9, 2016 elections, the same falls within the election period ban, and is categorically proscribed under the above provision,” said Pondoc. – Rappler.com