COA demand for P21M 'illegal' Capitol bonus refund stays
Over P21 million in refund demanded by the Commission On Audit (COA) to the Iloilo Provincial Government (IPG) stays. And only a Certiorari from the Supreme Court (SC) or a similar ruling can save the officials and employees here from returning the demanded amount.
Until and unless such happens, for the COA, all P21,001,364.00 must immediately be replenished by the IPG management.
Such was the clarification made by State Auditor V Arlene Togonon, COA Regional Cluster Director in a The News Today (TNT) interview yesterday.
The lady auditor also added that as far as the Commission is concerned, the post-audit made back in January 2003 and corresponding Notice of Disallowance issued thereafter is valid, just and legal.
In fact, the COA, she shared, did everything that can be done to accommodate the earlier appeal as sought by the IPG.
"It is final. It stays," State Auditor V Togonon said.
Earlier, Provincial Legal Officer Atty. Salvador Cabaluna said in media interviews that they will seek for a reconsideration of the COA ruling.
The order for refund resurfaced after the COA affirmed "with finality" Decision 2007-005 penned by COA chairman Guillermo Carague and Commissioners Reynaldo Villar and Juanito Espino Jr.
"After an evaluation of the arguments raised, it is shown that these have been judiciously passed upon by this Commission in the assailed Decision. In view thereof and considering also that no new material evidence have been presented that would warrant a reversal or modification of the assailed Decision, the instant Motion for Reconsideration is hereby DENIED and COA Decision No. 2007-005 dated February 15, 2007 is AFFIRMED with finality," the Resolution went.
The controversial Capitol bonus was distributed by the governor back in 2002. The governor's contention was that no refund was necessary following a supposed condonation from no less than President Gloria Macapagal-Arroyo. The COA refused to budge on its findings. It cannot be considered as basis to life the audit disallowances, the COA maintained.
It cannot be justified as an exercise of an allegedly plenary and absolute legislative power, the COA also asserted with a reminder that the legislative prerogative of the Local government unit is only a delegated power and not an inherent one.
The Capitol in its defense also argued "good faith" yet the COA junked the same.
"As to the defense of good faith, the same cannot be appreciated considering that the payments were clearly contrary to law and regulations. The Province of Iloilo disregarded the provisions of the law in giving additional incentives to its officials and employees," the COA added. "Evidently, the officials and employees were already aware of the lack of legal basis of the grant when they received the same. Thus the province cannot invoke good faith under the circumstances. As a consequence thereof, the officials and employees are obliged to refund the amount they received."
Barotac Nuevo case
Meantime, a similar fate occurred for the officials and employees of Barotac Nuevo, Iloilo.
The COA in a Notice of Disallowance held former Mayor now Vice Mayor Pedro Hautea as among the principal persons held liable.
Such, the COA, stated was "for approving the transaction and certifying that the expense was lawful."
Other municipal officials held liable alongside Hautea were municipal accountant Celso Lumawag, Nilda Maranon for certifying fund was available and Nema Braga for certifying the existence of appropriation.
Over P5.3 million in "extra cash gift" released here in 2006 was ordered to be refunded following a COA finding that such was not within the bounds of law.
Barotac Nuevo as per COA's records have over P12.1 million in "excess," P5.5 million of which is the excess in Personal Services as provided by law and the cash gift excess of over P5.3 million additional.
The town awaits decision of the appeal filed before the COA central office.