COA SAYS: Cash to inmates illegal

The Commission on Audit said the move of Capitol to “reward” inmates of the Cebu Provincial Detention and Rehabilitation Center through cash incentives has no legal basis.

In its audit report on the province for 2007, COA said the granting of Christmas bonus totaling P1.558 million anniversary bonus totaling P1.560 million to CPDRC inmates violated Budget Circular 65 dated March 3, 1997 and Budget Circular 2000-18 dated September 6, 2000.

Both circulars say only government personnel employed on a full-time or part-time basis and/or contractual personnel are entitled to the bonus.

COA said the so-called incentive to the inmates were not supported by any laws, regulations or circulars as basis of the grants, although, the obligations of the expenditures were based on the approved supplemental budgets under the account “donations.”  

COA recommended that the local chief executive should refrain from further approving the payment of Christmas and anniversary bonuses for the inmates for lack of legal basis.

But Provincial Budget Officer Emme Gingoyon argued the cash rewards were not as Christmas or anniversary bonuses, per se, but as an award or incentive for the inmates for effectively and efficiently complying with the province’s rehabilitation program.

“Such grant or donation to CPDRC inmates is valid and legal, as it is within the vested powers, duties and functions of the province and its officials,” Gingoyon said.

He explained further that the Advice of Allotment of the appropriation item has been duly prepared, approved, executed, obligated, incurred and disbursed.

Gingoyon insisted there are legal grounds of giving the incentives, such as the Local Government Code, which provides that the province “shall exercise such powers and discharge such other functions and responsibilities as are necessary, appropriate or incidental to efficient and effective provision of the basic services and facilities.”

Lawyer Rory Jon Sepulveda, Capitol consultant on legal matters, said the giving of the incentives was a judgment call on the part of the Capitol.

“It’s a judgment call. Ang COA limited themselves on the bonuses rule. Dili mi makiglalis nga dili gyud makadawat ang inmates og bonus but again, this is not bonus but incentives,” he said, adding, that the province will not stop giving incentives to inmates at CPDRC as part of the rehabilitation program. — Garry B. Lao/JMO