Audit reveals ‘illegal’ release of honoraria

CEBU, Philippines - The Comission on Audit has discovered that the Lapu-Lapu City government had made an illegal disbursement of funds by giving honoraria to some of its officials and employees who were designated as chairmen and members of different committees and boards.

Lydia B. Clapano, leader of state auditors assigned in Lapu-Lapu City, said the concerned city officials and employees, being appointed or elected government personnel who are receiving regular salaries for their positions, are not entitled to additional compensation because they are only performing the regular functions of their offices.

Clapano listed at least 17 different committees and boards of Lapu-Lapu City where its members are receiving honoraria. She cited Section 95 of the Local Government Code, which states that “No elective or appointive local official or employee shall receive additional, double or indirect compensation, unless specifically authorized by law.”

The Department of Budget and Management sets the guidelines on the grant of honoraria to selected personnel due to assignment in government special projects.

In Lapu-Lapu City, the personnel that are granted with honoraria are members of Business Inspection Board; Building Inspectors; City Development Council; City Agriculture and Fishery Council; City Fisheries and Aquatic Resources Management Council; Local Appraisal Committee.

Others are Local Council for Women/Child Protection and Nutrition; Local Board of Assessment; Local Housing Board; Local Finance Committee; Outreach Program of Lapu-Lapu City College; Personnel Selection Board; People’s Law Enforcement Board.

The rest are Solid Waste management Board; Task Force Water Protection and Conservation Committee; Tourism, Cultural and Historical Affairs Commission and Office of Senior Citizens Affairs Executive Committee.

The Lapu-Lapu City officials argued that the payment of honoraria to the concerned officers and members of different committees and boards were given in accordance with law as compensation for their extra services rendered, which is separate and distinct from their usual and regular functions.

But the state auditors disagreed to their arguments because granting of honoraria to the concerned officials and employees can be considered a violation of the provisions as provided for under Section 95 of Republic Act 7160.

“It is true that the creation of various committees and boards is within the mandate of the city mayor in the discharge of her functions, but this authority does not extend to or include the grant of additional compensation to the officials and members of the committees created, which is clearly prohibited,” the state auditors said.

COA recommended to Mayor Paz Radaza that the granting of honoraria to the concerned officials and employees be stopped immediately and to require them to refund the amount they received. —/JMD (FREEMAN)