2 ex-Cabinet officials, other NEDA officials told to return 176.69 M in cash incentives
The three-man Commission on Audit (COA)-Commission Proper has ordered two former Cabinet officials and other officials of the National Economic and Development Authority (NEDA) to return to the government 176.69 million in cash incentives distributed to NEDA personnel from 2010 to 2012.
In a recently released decision, COA’s top audit body composed of Chairman Michael Aguinaldo, Commissioners Isabel Agito, and Jose Fabia also ordered the case referred to the Office of the Ombudsman for possible filing of administrative or criminal charges against the officials involved, including former NEDA Directors General Arsenio M. Balisacan and Cayetano W. Paderanga Jr.
In another ruling on a similar
audit controversy, the COA-CP ordered officials and employees of NEDA Regional Office XI in Davao City to refund to the government 1152,000.00, 11,889,116.00, and 11,051,778.04 in Cost Economy Measure Award (CEMA) they received in 2010, 2011 and 2012, respectively.
In both rulings, the COA-CP absolved supervisory and rank-and-file employees who were “merely passive recipients” of the CEMA.
“However, the officials who authorized the grant, certified on the propriety thereof, or approved the payment shall continue to be jointly and severally liable for the entire amount of the disallowance,” the commission said in Decision No. 2017-406 that involved the distribution of 173,644,834.03 in cash incentives from 2010-2012.
Balisacan and Paderanga were blamed for approving the cash grants in 2012 and 2011, respectively.
Also named liable were Deputy Director General Nestor R. Mijares IV who approved the CEMA from 20102012; Director Joseph Melvin Basas, chief accountant Lilinda C. Pascual, Asst. Director Arturo Cebuma and Duane Ceniza, who certified the availability of funds.
Regional Director Ma. Lourdes Lim, approving official for distribution of CEMA in NEDA-Region XI; certifying officers Dimple Dumandagan, Ireneo Gerodias Jr., Kristoffer Kim Boga and several other senior regional supervisors were named liable, as well.
In Decision No. 2017-406, the COA CP ruled on the automatic review of a decision of COA National Government Sector Cluster 2 affirming the notice of disallowance for the CEMA payments of 173,644,834.03 distributed from 2010 to 2012 to NEDA employees and officials.
Balisacan led NEDA personnel in contesting the decision that declared the CEMA as having been “formulated and granted outside the bounds of the Total Compensation Framework” under Congress Joint Resolution No. 04 and unauthorized by the President.
The ruling declared the CEMA null and void under the General Appropriations Act for the years it had been awarded. It also pointed out that neither the Civil Service Commission nor the NEDA are authorized to use savings from its appropriations to pay for CEMA.
Balisacan cited Presidential Decree 807 and Executive Order 292 to support NEDA’s claim that the CSC is empowered to direct government agencies to grant monetary incentives and awards.
According to Balisacan, the criteria in the selection of CEMA awardees was ”clear and sufficient” considering that NEDA was able to meet and even exceeded target accomplishments despite having only a 64 percent manpower complement.
“In this case, it is evident that the CEMA was not specifically authorized by any law, as it stemmed from the NAIS provided under NEDA Office Circular No. 03-2005,” the COA-CP said.
The audit body described as “misplaced” the petitioners’ main contention that cited CSC Memorandum Circular No. 01 in connection with the grant of incentives.
“CSC MC No. 01, s. 2001, is not absolute and plenary, particularly on the implementation of benefits. It has to be coordinated or harmonized with other relevant laws,” the COA –CP stated.
“Similarly, the invocation of good faith by the approving officials cannot be appreciated. The concerned officials are senior officers of NEDA who are expected to have knowledge of laws, rules or regulations that may affect the performance of their functions,” the decision said.
After affirming the notice of disallowance, the COA-CP said:“The Prosecution and Litigation Office, Legal Services Sector, this Commission, is hereby directed to forward the case to the Office of the Ombudsman for investigation and filing of appropriate charges, if warranted, against the persons liable for the transaction.”