CNU execs, workers willing to return P5M of incentives

Officials and employees of the state-run Cebu Normal University yesterday said they are willing to refund almost P5 million of funds granted to them earlier as cash incentives and rice allowance, which the Commission on Audit had questioned in its annual audit report.

But they have clarified that they would do so only after President Gloria Arroyo junks their request to allow them to use their trust funds for that purpose.

CNU officials told COA they already stopped the rice subsidy, and that the refund of the rice incentives granted to them would be deferred, pending the result of the negotiation between CNU president Ester Velasquez and Arroyo on the matter.

The COA reported that the granting of such incentives to CNU personnel was irregular because it was taken from the school's trust funds or the income of the university, a manner that the Department of Budget and Management does not authorize.

The COA said Presidential Decree 1597 provides that allowances, honoraria, and other fringe benefits may be granted to government employees but only if such have the approval of the President, upon the recommendation of the budget commissioner.

The COA said CNU officials disbursed P1,277,240 for the rice subsidy from December 2002 to March 2004, but charged it against the Special Trust Funds. Aside from the one sack of rice for each of CNU officials and employees, a P10,000 bonus was also given to each of them.

CNU officials were also ordered to refund to the P3,730,000-disbursed also from the school's special trust funds-for their P10,000 Kalampusan Award given to each of them.

The CNU officials reasoned out that the achievement award was an incentive for every employee, pursuant to a resolution of the Board of Regents allowing for such expense, amounting to P3.7 million.

But while school officials said they would refund the amount spent for the award, still they will have to wait for the outcome of their negotiations with the Department of Finance on the matter.

The DBM, however, argued that only those deserving officials and employees are entitled to such benefits, and the expense of which should come from their savings and not from their special trust funds.

The Board of Regents also committed violations of law for approving a resolution stating that its members are also entitled to receive P20,000 Kalampusan Awards, which is twice the amount granted to ordinary employees, the COA ruled.

COA said the Higher Education Modernization Act of 1997 provides that members of the school board shall serve without compensation, and shall be reimbursed only for necessary expenses incurred in their attendance of meetings or in connection with their duties.

The DBM set the per diem or honorarium of each board member at P2,000 per meeting attended.