CoA flags DoLE over doubtful bonuses
The Commission on Audit (CoA) has questioned the P412 million unremitted cash bonus fund (CBF) and doubtful distribution of P431 million benefits for sugar farmers which were facilitated by the Department of Labor and Employment (DoLE).
In its 2018 annual audit report, the CoA said that undistributed CBF shares of sugar farmers from 1991 to 2018 stockpiled up to P528,082,528.89.
Out of the accumulated amount, P313 million was deemed forfeited and should accrue to the socio-economic program fund (SEPF).
However, only P115,243,730 of P528 million was remitted to DoLE Regional Offices (RO) leaving
P412,838,799.55 uncollected from the millers and planters who were assigned to distribute the CBF to sugar workers.
“Examination of the fragmented records available showed that instead of remitting the undistributed amount of P528,082,529.89, only P115,243,730.34 was remitted to the RO from crop years 1991 to 2018, thus a total of P412,838,799.55 was not remitted by the millers/planters, contrary to the regulation,” CoA said in its report.
The failure to distribute the bonus funds to sugar workers can be blamed to lack of public announcement. “The duty of the Secretary of DoLE is to make public announcements in local radio stations at least three publications in local newspapers and posting in public areas where the concerned beneficiaries reside. Because no actions were done, a total of P528,082,529.89 was unclaimed by the SWs (Sugar Workers) as of December 31,2018,” CoA pointed out.
As stipulated in Republic Act 6982, the undistributed portion will be remitted in trust to DoLE within three months for a period of three years from the date of remittance, after which the sugar workers’ benefits will be considered forfeited and will become the fund source for SEPF in addition to the 9 percent of the 20 percent share on lien.
Moreover, the CoA questioned the P431 million distributed CBF for lack of supporting documents.
“The distribution of P431,285,154.70 in FY 2018 was made thru payroll signed by the workers and the undistributed portions are still with the millers/ planters, however, except for the abovementioned status report, no other accounting reports to support the distribution of the CBF were maintained at the ROs,” CoA revealed.
DoLE told Labor Secretary Silvestre Bello III to instruct regional directors and make sure that the public announcements were made, demand the remittance of undistributed benefits, identify the socio-economic programs to be funded by forfeited CBF and inform the Sugar Tripartite Council of the fund accumulations as well as create solutions for the existing circumstance.
CoA also wants legal actions to those who intentionally violate the provisions of RA 6982.