Deduct disallowed bonuses from salary, solon suggests
Iloilo City Rep. Jerry Treñas said there was a rider in the releases of Productivity Enhancement Incentive or productivity bonus amounting to P49.653 million to 1,655 city government personnel in 2009.
Treñas, who was city mayor then, said the PEI given on December 2009 to city officials and employees was with an understanding that these should be deducted from their salary in the event the Commission on Audit finds it not in consonance with auditing rules.
Last week, the city government received a copy of Notice of Disallowance from COA for the payment of PEI, dated Aug. 12, 2010.
The notice stated that only P3,228,671.76 is allowable as PEI is based on 45 percent personal services limitation and the total amount of PEI disallowed is P46,424,328.24.
Each regular city government employee and official was given an amount of P30,000. PEI allowed by COA is only P1,950.74 and disallowed amount is P28,049.26 each employee.
Moreover, COA said the reversion of the Calamity Fund amounting to P31,431,648 to the unappropriated surplus per Ordinance No. 2009-095 dated Dec. 16, 2009 for the payment of PEI is contrary to Item b4 of the IRR of Republic Act No. 8185.
Any unexpended balance of the calamity fund should have been reverted to the unappropriated surplus for re-appropriation during the succeeding budget year.
Treñas said the city government is set to appeal the COA ruling within six months from receipt of COA notice last Sept. 1, 2010.
Those who received received productivity bonuses were 43 city government officials, department heads and assistant department heads and more than 1,600 employees.*PNA
