The five-man Governance Commission for Government-Owned and -Controlled Corporations (GCG) Board will further look into the granting of unauthorized bonuses and allowances to eight GOCCs in 2016 totaling P620 million and disallowed by the Commission on Audit (COA), according to the Department of Finance.
Finance Secretary Carlos G. Dominguez III, ex-officio member of the GCG, said he finds it highly irregular that some GOCCs granted unauthorized bonuses even though other agencies have not had their own bonuses.
“Definitely, the GOCC [board] will look into this very carefully,” Dominguez told financial reporters.
Based on the 2016 COA annual report on GOCCs released last month, the Philippine Charity Sweepstakes Office (PCSO) extended P518 million in unauthorized allowance and bonuses to its employees and officials.
Such other agencies as the Subic Bay Metropolitan Authority have not had their bonuses for 2015 and 2016, for instance.
According to the COA, eight GOCCs released unauthorized bonuses in 2016 amounting to P620 million, especially the PCSO, which paid out a total of P518 million. State auditors said the agencies granted perks to officials and employees without “sufficient legal basis.”
Aside from the PCSO, the Small Business Corporation also released P46.448 million in unauthorized allowances and bonuses as did the National Electrification Administration with P23.683 million; the Philippine Coconut Authority which released P11.475 million; the National Food Authority, with P10.097 million; Apo Production Unit Inc. with P7.45 million; the Human Settlements Development Corp. with P2.085 million; and the Intercontinental Broadcasting Corp. amounting to P219,000.
The COA has directed the GOCCs to secure approval from the GCG on the unauthorized compensation grants, as well as to justify why the payment of incentives should not be disallowed.
Based on the COA’s 2015 annual financial report, the PCSO topped the list of agencies with unauthorized releases of P429.82 million. This was 20.5 percent higher than in 2015 when releases totaled P518 million.
Eight GOCCs and 55 water districts released unauthorized bonuses amounting to P727.7 million for the year.
In 2014 the COA ordered 28 GOCCs to return unauthorized allowances amounting to P626.119 million, with the biggest given out by the Philippine Economic Zone Authority (Peza). The Peza released a total P213.84 million in bonuses and benefits that year.
Last week the Senate said the first major review since the passage of the law mandating comprehensive and regular checks on the operations of GOCCs commenced.
As Congress reconvenes now that the Association of Southeast Asian Nations summit is out of the way, the Senate will conduct an inquiry as to how well Republic Act (RA) 10149, or the GOCC Governance Act of 2011, has given guidance to the state corporations, and provide proper sanctions for violators.
“Upon the determination and report of the COA that properties or monies belonging to the GOCC are in the possession of a member of the board or officer without authority, or that profits are earned by the member of the board or officer in violation of the fiduciary duty, or the aggregate per diems, allowances and incentives received in a particular year are in excess of the limits provided under the Act, the member of the board or officer, receiving such properties or monies, shall return the same to the GOCC,” RA 10149 said.
According to Sen. Grace Poe, the P620 million could have been used to supplement worthwhile government programs, such as additional capital outlay for 60 public hospitals, subsidy for the public-utility vehicles modernization project, or additional funding for feeding programs.
2 comments
si grace poe lang ata ang desidido habulin yung may mga kasalan nung nakaraang administrasyon
sayang talaga yung pondo nung panahon ng mga dilawan, tama si senator grace na malaking tulong yun sana pampaayos ng MRT kung hindi nila nabulsa yung pondo