COA stops payment of CPA allowances

The Commission on Audit has ordered the Cebu Ports Authority to discontinue paying 40 percent Cost of Living Allowance and 10 percent amelioration allowances, as well as the traditional benefits of its officials and employees until its legality is decided with finality by the Supreme Court.

State auditors noted that P18,393,556.63 were not in CPA continued paying for the consonance with the said benefits despite questions Department of Budget and of its legality. In fact, it has already Management instruction in accumulated P265.5 the approved Corporate million of questionable benefit Operating Budget on payments since 1999. Personal Services.

COA, in its Annual Audit Under the DBM Report, pointed out that the approved Corporate payments in calendar year Operating Budget of the CPA 2014 of the allowances which for CY 2014, Personal totaled P21,784,318.69, and Services only has a budget of traditional benefits of P146, 279,000.

A footnote of said approved budget indicated that payment for allowances and incentives, despite decisions from the Regional Trial Court, shall be made only upon a Supreme Court decision affirming the lower court’s ruling.

“Regardless, payment of these allowances and benefits continued in CY 2014 which amounted P21,784,318.69 for the 40 percent COLA and 10 percent amelioration allowances, and traditional benefits of P18,393,556.63,” COA said.

COA noted that from CY 1999 to December 2014, payment of these allowances and benefits already accumulated to P265,437,667.88.

Audit Observation Memorandum No. 2014-010 was issued on this regard and the CPA management reportedly commented that the decision of the RTC granting these benefits have long become final and executory.

The CPA management asserted that said allowances and incentives are being granted pursuant to the final and executory decisions of the case filed by the employees against the CPA, which decisions may no longer be reviewed or in any way modified directly or indirectly by a higher court, not even by the Supreme Court, much less by any other official, branch or department of government.