Mandaue told: Get P36M back

CEBU, Philippines -  The Commission on Audit has asked the City Government of Mandaue to require job orders, clean and green workers and barangay health and nutrition workers to refund the cash incentives they received totaling P36.5 million.

COA said the grant of cash incentives is not in harmony with the provisions of Rule V, Civil Service Commission Memorandum Circular 38 series of 1993 and the job order agreements resulting in the irregular disbursements of government funds amounting to P36,493,355.

 “It also hampers the efficient and effective delivery of government services at a certain extent due to non-implementation of other priority projects, programs and activities of the City which could have been funded out from such funds,” the 2013 audit report read.

 The employment of job order workers, clean and green workers, barangay health and nutrition workers is governed by the job order agreement which is prepared by the Human Resource Management Officer and approved by the city mayor.

 This job order agreement includes the name of the worker/s, period of employment which usually covers a six-month period, source of funds, assignment, and the rate per day with provisions that the agreement can be terminated prior to the expiration of the term for lack of funds, or when their services are no longer needed.

 The agreement will automatically cease upon its expiration, unless renewed. The service rendered is not considered or accredited as government service.

 Rule V of said CSC Circular, otherwise known as the Omnibus Guidelines on Appointments and Other Personnel Actions, provides that Contract of Services and Job Orders refer lump sum work or services such as janitorial, security or consultancy services where no employer-employee relationship exists.

 While job orders agreements are also not covered by Civil Service Law, they are covered by COA rules.

 The circular also provides that employees involved in the contracts or job orders do not enjoy the benefits enjoyed by government employees, such as Personnel Economic Relief Allowance, Cost of Living Allowance, and Representation and Transportation Allowance.

 COA said as the services rendered under contracts of services and job orders are not considered government services, these do not have to be submitted to the CSC for approval.

 The grant of cash incentives in 2013 was authorized by City Ordinances 13-2013-838 and 13-2013-872 dated July 24, 2013 and November 13, 2013, respectively.

 However, COA said the city erred in granting said cash incentives as it circumvented the Job Order Agreements executed between Mandaue City represented by the mayor and the workers.

 “Nothing is stipulated in the JOA that the LGU would give cash incentives to the worker(s) except for the payment of their services equivalent to the daily rates specified therein. Hence, the passage of the foregoing City ordinances authorizing the grant of the questionable cash incentives was not in harmony with the JOA and cannot supplement the existing terms and conditions of the agreement,” COA said.

 The city assured the audit team that they will stop granting this kind of incentive to the city’s job order personnel.

 “It should be borne in mind that the grants of this incentive in the previous years had been disallowed in audit,” COA stressed.

 If the city government is not able to get the refund, COA said that the officials who approved to grant the benefits shall be held liable for the amount disbursed. —/BRP (FREEMAN)