COA: Capitol consultants have to reimburse 'gifts'

CEBU, Philippines - The Commission on Audit has ordered the immediate refund of almost P1 million that the provincial government of Cebu paid last year for the extra cash gifts of the 28 consultants, which state auditors found to be without legal basis.

The annual audit report of the financial statements of the province showed that the Capitol paid P819,230 for the extra cash gifts and other benefits to the consultants such as representation and cost of living allowances.

COA said the granting of the benefits to the consultants, which only organic manpower of the government is entitled to, is contrary to Local Budget Circular No. 2008-18 and Civil Service Memorandum Circular No. 38 series of 1993.

According to the state auditors, the Capitol allocated P581,884 for the extra cash gifts of the consultants. Of the amount, P161,256 was paid in December 2008 while the remaining P420,628 was listed as payable.

Further verification however showed that the remaining amount was fully paid in January 2009.

On top of the P581,884 extra cash gifts the Capitol also paid P237,346 for representation and cost of living allowances.

State auditors said that the contracts of the consultants clearly state that it does not create an employee-employer relationship between the parties hence they are not considered government employees and are not entitled for benefits extended to government personnel.

The provincial government, in its comment submitted to COA, said they have already instituted measures to recover the amount by asking the consultants to refund the money. The provincial government likewise assured that said grant will no longer be allowed in the coming years.

It is however uncertain how the provincial government will compel those consultants, who are no longer connected with the Capitol.

Based on the list of consultants submitted to COA at least two of them are no longer connected with the Capitol.

There were 28 consultants who were granted the extra cash gifts ranging from P15,000 to P23,876 last year. Nine of the consultants were under the office of the governor, 10 were listed under the vice governor’s office while the others are consultants of the board members. — Fred P. Languido/NLQ(FREEMAN NEWS)