COA questions P1.7-B PhilHealth bonuses, allowances

MANILA, Philippines - State auditors are questioning the more than P1.761 billion in unauthorized bonuses and allowances given in 2013 to officials and employees of the Philippine Health Insurance Corp. (PhilHealth).

In a report released yesterday, the Commission on Audit (COA) said the   incentives were without legal basis.

State auditors said PhilHealth’s decision to continue giving its officials and employees unauthorized allowances and bonuses despite the issuance of notices of disallowance (ND) for similar payments is questionable.

The incentives were supposedly based on various board resolutions that were not submitted to the Office of the President through the Department of Budget and Management (DBM) for approval.

It allegedly violates the rules under Presidential Decree 1597, the law rationalizing the system of compensation and position classification in the national government.

State auditors said PhilHealth continues to give the bonuses and allowances to its officials and personnel despite having been disallowed for lack of legal basis.

“Despite the issuance of the NDs and several decisions denying their appeals and affirming the disallowances, management continuously granted the aforementioned benefits and allowances without obtaining the required approval of the Office of the President,” the COA said.

Records show PhilHealth gave various unauthorized incentives to its officers and workers in 2013, including subsistence and laundry allowances totaling P53.131 million; productivity incentive allowances and bonuses of P302.954 million and hazard pay of P96.157 million.

Other incentives include anniversary bonus totaling P33.809 million; rice benefits of P106.069 million; educational allowances amounting to P279.045 million; a Christmas package of P242.037 million and shuttle service assistance of P132.8 million.

Also granted were Labor Management Relation Gratuity pays totaling P155.252 million; birthday gifts of P38.306 million; medical and mission critical allowances of P21.823 million; corporate transition and achievement premium and/or grocery allowances of P118.241 million, and a handful of other financial benefits.

“We recommended that management stop granting said allowances and other incentives unless an approval from the Office of the President is obtained,” the COA report said.

Officials and employees, in defense, commented that they have filed their appeals which are pending with the COA Commission Proper or Central Office.