Metro Manila (CNN Philippines, March 1) — The Supreme Court (SC) has affirmed the Commission on Audit (COA) ruling disallowing the grant of over ₱15 million allowances and incentives to Philippine Health Insurance Corporation (PhilHealth) employees for 2009 and 2010.
In a verdict uploaded recently, the SC denied PhilHealth’s petition challenging COA’s notices of disallowances (NDs) to PhilHealth Regional Office IV-A on the grant of various benefits totaling ₱15.2 million.
The high court ruled that the recipients must return the amounts “ regardless of whether or not they received them in good faith.”
State auditors previously issued the NDs, covering transportation allowance, project completion incentive, and educational assistance allowance paid to regular and contractual employees.
The COA said some of the grants were irregular expenditures since contractual workers are not entitled to benefits enjoyed by government employees. It added that the others were in violation of the 2009 and 2010 General Appropriations Acts.
The high court agreed, saying the transportation allowance and project completion incentive were contrary to the provision in the job order contracts that the only compensation due to the contractor was the daily rate agreed upon.
It added that there is no law or issuance from the Department of Budget and Management allowing for the educational assistance given to regular employees.
“The only exceptions are if such recipients can show that the amounts were genuinely given in consideration of services rendered, or the return is excused based on undue prejudice, social justice considerations, and other bona fide exceptions as may be determined by the Court on a case-to-case basis,” the SC said in a press release.
“None of the exceptions apply to the present case,” it added.
The court also said the approving and certifying officers are likewise liable to return the disallowed amounts.
