Return P8.7-million illegal perks, CoA tells MWSS

The Commission on Audit (CoA) on Tuesday declared that it will enforce a decision directing officials of the Metropolitan Waterworks and Sewerage System (MWSS) to refund the government a total P8,762,948.31 in financial benefits they distributed to employees and to themselves some ten years ago.

Rolando Macale, chief information officer of the audit body, released a copy of the 14-page CoA decision on Tuesday as leaders of Senate and the House of Representatives vowed to conduct an investigation into the “scandalously high salaries” received by officials of government owned and controlled corporations, including the MWSS.

In a decision written by CoA Chairman Reynaldo Villar and Commissioner Juanito Espino Jr., the state audit body declared that the amount representing medical allowances, anniversary bonuses and other financial benefits were illegal, thus, should be returned to government.

The decision will be presented to the congressional bodies that would be tasked to investigate the alleged abuses committed by GOCCs in setting high salaries, allowances, and other financial benefits for officials and employees.

The CoA ruling was made in connection with the appeal of MWSS Administrator Orlando Honrade to the 2002 decision issued by the CoA Legal and Adjudication Office disallowing the payment of P8,740,837.56 benefits to MWSS employees in 2000.

Disallowed and ordered refunded were the following: 2000 mid-year and year-end financial assistance/ Bigay Pala anniversary bonus, medical allowances, productivity incentive bonus and representation and transportation allowances.

CoA said the financial assistance and bonuses were authorized by the MWSS board without approval by the Office of the President.

In its annual audit report on MWSS finances in 2008, CoA confirmed that the board of trustees of the water agency has made the state-owned firm a virtual milking cow as claimed by President Benigno S. Aquino III in his first State-of-the-Nation Address (SoNA).

The 2008 annual audit report of MWSS showed that government auditors found at least nine irregularities in the disbursement of funds, mostly expenditures covering unauthorized incentives and perks, including expenses for executive medical check up, for its officials and employees. –BEN R. ROSARIO, Manila Bulletin