COA MAY DISAPPROVE CHRISTMAS BONUSES

MAASIN CITY - Here's good and bad news for all provincial and city government employees in the province. According to Provincial Board Member Jason Calva each will receive higher cash gifts for their Christmas bonus with the lifting of the cap by the Department of Budget and Management.
He said this means the estimated 1,000 regular and casual employees of the provincial and city governments will be receiving P25,000 each. While casual and job order employees would receive P12,000.
But according to Commission on Audit sources these bonuses could still be disallowed, as what happened in Iloilo, where the employees had to refund their Christmas bonuses amounting to P21 million which the COA declared was illegal.
The COA directed the provincial treasurer there to withhold payment of salaries or any money due to at least 1,500 employees and officials including Governor Niel Tupas, then Vice Governor Roberto Armada and 13 provincial board members to recover the disallowed bonuses
The granting of the hefty incentives had been met by criticisms from church leaders who claimed "it was unconscionable, considering the country's economic plight."
The Local Governemnt Code provides that Personnel Service Expenses of local governments under the first, second and third class categories should not exceed 45 percent of its total income in the preceding year.
While LGUs under the fourth and fifth class categories like Southern Leyte have a limit of 55 percent. Personnel expenditures include salaries, allowances and bonuses.
COA said that in cases like Iloilo’s they had already exceeded their limit even before the granting of the PEI, adding that all LGUs granting PEIs which exceed their personal services limit would risk disallowances from COA and would be required to refund them.
(By ANTHONY KINGS)

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