Gov. Davide Defends Capitol Workers’ Bonus in 2014

Cebu Governor Hilario Davide III has defended the provincial government’s grant of PHP22,000 productivity enhancement incentive (PEI) to its employees in 2014.

Davide said there is a Department of Budget Management (DBM) circular which authorized the payment of bonuses beyond the cap pegged by the DBM if the local government unit (LGU) can afford.

“We thank God because the Provincial Government can afford it,” Davide said.

Earlier, the Commission on Audit (COA) noted that the Cebu Provincial government granted its 2014 PEI that exceeded PHP5,000, the amount allowed by DBM under Circular 2013-3, Section 1.3.1

Instead of spending only PHP7.585 million for the 2014 PEI, the province spent PHP37.495 million, incurring an excess expenditure of PHP29.910 million, COA said.

This prompted COA to require all officials and employees to refund the excess amount.

The governor met with members of the local finance committee Thursday to discuss and prepare the Cebu Capitol’s reply to COA’s order.

Davide said the Cebu Provincial Government will submit its reply to COA and will cite DBM Circular 2013-3.

“We will justify. We believe we are right in giving bonuses to Capitol employees based on our appreciation of the DBM circular,” said Davide.

Acting Cebu Provincial Budget Officer Danny Rodas said that Section 9 of DBM Circular 2013-3 states that “LGU employees may be granted the PEI for FY 2013, at rates determined by the respective Sanggunian, depending on the LGU’s financial capability and subject to conditions.”

The province allocated PHP28 million for the PEI this year of PHP22,000 for each employee.

The incentive was released and distributed to the employees last month. (PNA) JBP/EB/EDS