CEBU, Philippines - The Commission on Audit has questioned the P20,000 given to each official and employee of the Cebu City government following the twin calamities that affected Central Visayas late last year.
A magnitude 7.2 earthquake struck in October and super typhoon Yolanda pounded on the Visayas in November.
The P20,000 was given to 4,224 recipients in the form of calamity assistance.
In its report on Cebu City’s financial transactions last year, COA said the grant violated section 12 of Republic Act 6758 or the Salary Standardization Law, provisions of the Local Government Code, and COA Circulars.
Mayor Michael Rama wanted to give a Christmas bonus to city official and employees last December but because the expense would push the budget for personal services overboard, the grant was referred to as calamity assistance.
The grant was approved by the City Council but Councilors Margarita Osmeña and Lea Ouano-Japson did not accept their share because they were reportedly ashamed to do so knowing they were not affected badly.
“Wala man ko mabiktima sa calamity,†Osmeña had said.
Eugene Elizalde, head of the Program on Awards and Incentives for Service Excellence, the committee that recommended the grant, had said the money would help hasten the recovery of employees who suffered from the calamities.
COA pointed out, however, that it was given without prior approval of the Office of the President as provided for under Administrative Order No. 37 dated November 21, 1998.
“The review does not authorize any item of appropriation that is specifically prohibited by or inconsistent with the provisions of law and compliance with all applicable laws, rules and regulations shall be the responsibility of the implementing local government unit,†its report reads.
COA also found out that the calamity financial assistance was not sourced or taken from the Local Disaster Risk Reduction and Management Fund (LDRRMF) or calamity fund, but charged against funds of the Office of the City Administrator and the transactions were recorded as donations.
COA said “the recording of financial assistance under donations account is irregular for it tends to mislead the true nature of the disbursement in the disguise of giving donations instead of the proper other bonuses and allowances account.â€
It advised City Hall officials to secure permission from the Office of the President for expenses like these otherwise such transactions may be disallowed, which means the officials who allowed the funds to be disbursed may be made to refund the same.
COA warned that future grants of any form of financial assistance must conform to applicable laws, rules and regulations. -/JMO (FREEMAN)