MANILA, Philippines - The Commission on Audit (COA) has uncovered more than P7-million payroll anomaly at the Philippine National Railways (PNR) involving the existence of ghost employees, payroll padding, double-payments and other irregularities.
In a 2011 COA report released yesterday, state auditors said appropriate charges should be filed against PNR officials who will be found liable for dishonesty and other offenses, resulting in loss of government funds.
PNR officials have admitted that the irregularities were discovered last January and that a special fact-finding investigation is being conducted against the manager of its Controller Division.
Government auditors found out that the payroll for the salaries of the so-called “hire and fire” employees were paid through banks amounting to at least P4.51 million last year.
“Padding of payroll in the amount of P3,943,072 was revealed in the payment of salaries of Ryan Ardeza, Alvin Impas, Jay Laura, and other ghost employees of the Engineering Department-Lucena Division,” the state auditors said.
“The employees who were paid their salaries at the Lucena branch of the PNB (Philippine National Bank) were also included in the payroll paid for the same period at PNB Tutuban branch. Ryan Ardeza, et al did not even have contracts of service for the month of March 2011,” they added.
The COA report said four individuals who were not included in the payroll register received salaries from January to May 2011 in the total amount of P105,684.
State auditors added that the PNR paid more than P2.69 million in overtime pay of its employees last year.
The audit team said the payrolls were not supported with basic requirements such as daily time records (DTRs) showing regular office hours and the overtime services rendered by the employees.