COA questions Capitol insurance

CEBU, Philippines - After raising concerns on the Suroy-Suroy Sugbo program of the Provincial Government, the Commission on Audit has questioned deficiencies on the manner of providing insurance for Provincial Health Volunteer Workers and Barangay officials.

In their Audit Observation Memorandum sent to the office of Acting Governor Agnes Magpale, the COA stated “deficiencies and errors” on the payment of the Accident and Dismemberment Security Scheme for the year 2012 to 2013.

According to the COA observation, “the provincial government took an insurance coverage on the employees of the Provincial Health Office and barangay officials from the Philippine Crop Insurance Corporation (PCIC) for a total amount of P1.6M which may not have legal basis.”

Based on the observation, the provincial government took an insurance coverage for 44,854 barangay officials which include tanods, lupon members, barangay health workers, barangay nutrition scholars, day care workers, animal health aids and bantay dagat members.

Insurance for all the members of the Provincial Health Office totalled to P1.6 million, stated in the COA report.

But COA stated that “the insurance provider, is a government corporation whose mandate is to provide insurance protection to the country’s agricultural producers particularly the subsistence farmers, against loss of their crops and or non agricultural assets on account of natural calamities such as typhoons, floods, droughts, earthquakes, and volcanic eruptions, plant pests, and diseases and or other perils.”

Included in the ADSS security scheme are family members of the members of up to fourth degree consaguinity.

With this, the COA stated that the persons insured would not be considered qualified for the ADSS.

It added that even the memorandum agreement between the Provincial Capitol and PCIC was entitled “Memorandum Agreement for the Insurance Coverage of Provincial Health Office Volunteer workers and Barangay officials fo the component municipalities and cities of the Province of Cebu.”

Further, COA pointed out that PCIC provided insurance for death and dismemberment caused by agricultural producers, fishermen and other members of the ADSS.

In line with Republic Act 7160, the Government Service Insurance System (GSIS) “shall establish and administer an appropriate system uner which the punong barangay, members of the Sangguniang Barangay, barangay secretary, treasurer and the members of the barangay tanod shall enjoy insurance coverage as provided in this code and other pertinent laws.”

Allocation for the said insurance shall be included in the General Fund, as stated in the law. The COA pointed out that there is no provision of RA 7160 in the implementation of the insurance specifically in providing a provincial government to provide insurance coverage for frontline volunteer workers.

COA is asking for the Provincial Government to submit an explanation on the said transaction. —/FPL (FREEMAN)