Metro Manila (CNN Philippines, July 11) — The Commission on Audit (COA) questioned the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) for its over ₱22 million in cash grants to employees last year.
In an audit report, the COA said TIEZA employees received cash grants under the Program on Awards and Incentives for Service Excellence (PRAISE) in light of the agency’s International Organization for Standardization (ISO) Certification.
However, state auditors said the cash grant did not comply with Civil Service Commission rules on PRAISE.
Under CSC Memorandum Circular No.1, monetary awards under PRAISE should be given to employees if their accomplishments or suggestions result in monetary savings.
“It appears that monetary savings, which use a requisite in the grant of monetary award, could not be determined; hence being ISO certified is not eligible for the monetary award under PRAISE,” the COA said.
State auditors also noted that most government agencies that received ISO certification did not grant cash awards to their employees.
“Allowing or passing in audit the grant of monetary award in recognition of ISO certification as one of the agency awards under TIEZA’s revised PRAISE could open the floodgates and would be a precedent-setting to all ISO-certified agencies in government to grant the same monetary award to its employees,” the COA explained.
The TIEZA management justified the grant of cash awards following its ISO certification as it had been evaluated and approved by the CSC.
It insisted that every TIEZA employee had a vital role in achieving such recognition and that the certification resulted in monetary savings.
“In terms of cost reduction due to improved processes and efficiency resulting in better public service, as evidenced by their outstanding customer satisfaction survey,” TIEZA said.
However, COA pointed out that CSC approval of an agency’s PRAISE does not automatically equate to a blanket authority for the grant of any incentive.
The audit team said it would decide whether or not to disallow the grant after TIEZA provides proof that it adopted benchmarking with other agencies that granted the monetary award.
Desk calendars
Auditors also found that TIEZA purchased 750 pieces of desk calendars priced at ₱645 per unit as corporate giveaways.
The supplier that quoted the items for a lower price of ₱230 per unit was apparently disqualified due to failure to submit details and specifications.
The audit team said TIEZA management could have clarified the specifications with the supplier and proceeded with negotiations for a lower cost rather than just settling with the price quoted by the winning bidder.
