State auditor gets 6-month suspension for accepting allowance

MANILA, Philippines - A state auditor was meted a six-month suspension by the Office of the Ombudsman for accepting a regular allowance from a government agency he was tasked to audit.

Ernesto Gregorio was found guilty of an administrative offense, or conduct prejudicial to the interest of the service. He will receive no pay during the period.

The Ombudsman said Gregorio also violated Republic Act 6758, or the Compensation and Position Classification Act of 1989, and Commission on Audit (COA) Memorandum No. 89-584 which prohibits state auditors and personnel from receiving benefits from the agency they audit.

Records showed Gregorio, as supervising auditor of the Home Guarantee Corp. (HGC), received honoraria from the government-owned and controlled corporation (GOCC) from January 2000 to January 2004.

The same allowance, described as extraordinary and miscellaneous expenses, was being given to HGC president, vice presidents, regional managers, department managers, assistant department managers, and members of the board of directors.

In a decision signed last Jan. 24, Ombudsman Conchita Carpio-Morales junked for lack of merit the respondent’s defense that the HGC is allowed by law to provide audit support to audit teams and personnel.

“The law allowing the audited GOCC to provide audit support does not cover the grant of EME to the COA auditors assigned in the said GOCC. The audit support merely refers to training, conference, and the transportation for said activities,” the Ombudsman said.

The anti-graft court said that if the suspension order could no longer be served due to retirement or resignation, Gregorio should pay a fine equivalent to his one-year salary.

Morales also dismissed for lack of merit the administrative complaint filed against the other HGC officers, and the criminal case against the COA auditor and several others for alleged malversation of public funds, graft, and infidelity in the custody of documents.

The COA prohibits its auditors from receiving honorarium, allowance, bonus or other emoluments from any government agency in order to preserve the institution’s independence and integrity.

The Government Auditing Code of the Philippines provides that government agencies and offices may extend support to audit teams or groups performing audit functions.

However, such is limited to adequate office space, storeroom for vouchers and documents, facilities, conference and training expenses and travel and transportation expenses, among others.

Auditors may likewise receive only one mobile telephone of a model not better than those provided for their colleagues in the central office, and no more than one laptop, or computer notebook or netbook.