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COA Finds P20T Calamity Aid for City Hall Workers ‘Illegal’

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●COA said the financial assistance was granted without prior approval of the Office of the President required under Administrative Order No. 37.

The granting of P20,000 to each of the 4,224 officials and employees of the Cebu City government in December last year as a form of calamity assistance for the earthquake and typhoon Yolanda has been questioned by the Commission on Audit (COA).

In its annual audit report (AAR) over Cebu City’s financial transactions last year, COA said the city’s act of giving calamity financial assistance to all of its officials and employees has violated section 12 of Republic Act 6758 or the Salary Standardization Law, the provisions of the Local Government Code and COA Circulars.

The granting of the calamity financial assistance was approved by the Cebu City Council, but Councilors Margarita Osmeña and Lea Ouano-Japson refused to receive the financial aid.

“Wala man ko mabiktima sa calamity,” said Councilor Osmeña.

City Mayor Mike Rama and the rest of the city officials collected their calamity financial assistance, which was then recommended by the Program on Awards and Incentives for Service Excellence (Praise) committee.

Praise head Eugene Elizalde last year said the money will help hasten the recovery of the employees who suffered damages brought about by the 7.2-magnitude earthquake in October and the super typhoon Yolanda in November 8.

But COA said the calamity assistance were granted without the prior approval of the Office of the President as required under Administrative Order No. 37 dated November 21, 1998.

“The review does not authorize any item of appropriation that is specifically prohibited by or incosistent with the provisions of law and compliance with all applicable laws, rules and regulations shall be the responsibility of the implementing local government unit,” the state auditors said in its audit report.

COA also found out that the calamity financial assistance was not taken from the Local Disaster Risk Reduction and Management Fund (LDRRMF) or calamity fund, but were charged to the account under the Office of the City Administrator.

COA added that the transaction was recorded as a donation. According to the state auditors that “the recording of financial assistance under donations account is irregular for it tends to mislead the true nature of the disbursement in the disguise of giving donations instead of the proper other bonuses and allowances account.”

The state auditors advised the City Hall officials to secure the permission from the Office of the President for these expenses, otherwise such transactions will be disallowed. This means that those officials who allowed it would be made to refund the said amount.

COA also warned the city officials that future grants of any form of financial assistance must conform to applicable laws, rules and regulations.

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