SC affirms COA’s disallowances involving P54M

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The SC upheld COA disallowances of P38.8 million used to build venues and facilities for the 2005 Southeast Asian Games in Bacolod City and P15.2 million in PhilHealth's 2009 and 2010 allowances and incentives to regular and contractual employees.

The Supreme Court has affirmed two decisions of the Commission on Audit which disallowed the P38.8 million used in the construction of venues and facilities for the 2005 Southeast Asian Games in Bacolod City, and the P15.2 million in allowances and incentives given by the Philippine Health Insurance Corporation to its regular and contractual employees in 2009 and 2010.

The SC said the suppliers and contractors involved in the construction of the Southeast Asian Games facilities “are still entitled to retain the value of their deliveries and services to BASCO” and should be deducted from the total amount of disallowance.The SC pointed out that “disbursement of large public funds deserves no less; tax payers’ money should always be spent with paramount consideration of full transparency and reasonable budget allocation.

To undertake the rehabilitation work in the Bacolod City facilities, the Philippine Sports Commission granted P50.5 million financial assistance to the BASOC – through Puentevella. A press briefer issued by the SC’s public information office stated that “various NDs were first received by PhilHealth Regional Office IV-A covering the transportation allowance, project completion incentive, and educational assistance allowance paid to regular and contractual employees for 2009 and 2010.”

It said “the SC held that the grant of transportation allowance and project completion incentive to contractual employees was contrary to the provision in the job order contracts that the only compensation due to the contractor was the daily rate agreed upon.”

 

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