Negros university execs told: Refund illegal perk

MANILA, Philippines - Warning them that they may be held criminally and administratively liable for “willful violation of the law,” the Commission on Audit (COA) has directed officials of the Negros Oriental State University (NORSU) to refund millions of pesos in so-called economic relief allowance granted to them from 2008 to 2010.

State auditors said the grant of such an incentive constituted irregular and unlawful disbursement of public funds as it was not even approved by the Office of the President and the Department of Budget and Management.

Records show that in 2010 alone, unnamed university officials received more than P14.6 million in ERA, getting a maximum of P30,000 each sourced from the Special Trust Fund.

“We recommend that the officials of the NORSU and its external campuses discontinue the disbursement of the unauthorized (ERA), otherwise they could be held liable for willful violation of the law,” a COA report read.

“In addition, the officials and employees concerned are required to immediately refund the amounts they received upon receipt of the Notice of Disallowance,” it added.

The basis for the grant of ERA was a board resolution which the audit team said had no legal basis as there is no provision in Republic Act 9299 converting the Central Visayas Polytechnic College to NORSU that authorizes the board of regents to approve such a grant.

State auditors noted that the ERA had been granted every year since 2008. 

“Audit observations have repeatedly been issued by the previous audit team but management still did not pay attention to the audit recommendation to stop the further grant of ERA for lack of legal basis,” the COA report said.

“We are reminding management that repeated violations of existing laws, rules and regulations do not manifest good faith on their part considering that the audit team have always been calling their attention on the matter,” COA warned.