COA recalls order to refund bonuses

The Commission on Audit (COA) has issued a resolution lifting an earlier order for employees of some government agencies to refund the bonuses they received through their Collective Negotiation Agreement (CNA).

The CNA is the equivalent of the Collective Bargaining Agreement (CBA) in the private sector.

In Central Visayas, the COA had disallowed an estimated more than P30 million in signing bonuses derived from forged CNAs as part of the union's incentives from the cities and municipalities as well as employees of regional offices of national government agencies last year.

According to COA resolution 2006-09, the grant of CNA bonuses was consistently disallowed on the ground that such had violated Republic Act 6758 or the Salary Standardization Law and for lack of approval by the Office of the President due to cost cutting measures applied.

But, these can now be considered after the issuance of Administrative Order 135 and with Budget Circular 2006-01 of the Department of Budget and Management dated February 2006. It is now being resolved that the granting of the CNA has no legal impediments.

COA had closed their audit prior to its issuance, which was by December 3, 2005.

According to the said resolution CNA incentives received by employees in the government service before the issuance of AO 135 may now be considered or lifted provided they strictly complied with allowable rates and parameters prescribed by DBM.

Records from the Civil Service Commission showed there are 96 registered and accredited unions in Region VII and most of them had already ratified their respective CNAs.

Employees from the National Development Authority, Bureau of Local Government Finance, some from the Civil Service Commission, Livestock Development Authority, and Cebu Normal University, the National Government Agencies with available 2005 Annual Audit Reports posted at their web site all had their CNA bonuses disallowed for lack of legality.

These CNA incentives have a value of P10,000 or higher depending on the savings of the agency.

CNA disallowances also hold true for other cabinet offices, attached agencies, government owned and controlled corporations and those that are still to be posted yet.

COA Regional Legal and Adjudication Officer Roy Ursal said those CNA grants which are under appeal, requested for reconsideration and or petitioned for review of disallowance are also remanded for Resolution at the RLAOs.

Ursal however said that legalities are determined according to the provisions of the Public Sector Labor Management Council, the implementing body of the government workers right to organize.

CNA incentives in the form of signing or ratification bonuses or union member's benefit as Professional Enhancement Assistance is stipulated under PSLMC provided that funds are derived from savings after all planed targets and programs of the agency are attained.

Savings refer also to balances of the released allotment for the year, which are already free from any obligation or intended for a specific purpose.

The CNA should also list cost cutting measures and systems improvement that will be undertaken by both Management and the Union so that delivery of service and achievement of the agency's targets can be made at less cost.

It also required that CNA grants are given only after the ratification of their respective CNAs.

Ursal said for as long as the said provisions are followed, then there will be no disallowance.

It was observed in several AARs of government agencies that some were granted even before savings were obtained or distributed a month before their CNAs were ratified.

The lack of cost cutting measures and systems improvement to be undertaken by both management and union is also one ground for disallowance.

Public sector unions are recognized by CSC to have played a crucial role in the quest for good governance and genuine reforms in government.

There are 1,504 registered government unions nationwide and 170 of them had already forged their respective CNAs.

Only rank and file employees can form or become members of government employees organizations excluding highly confidential and co-terminus employees, members of the Armed Forces of the Philippines, Philippine National Police, firemen and jail guards.