COA finds fault in RDC-Cordi payments

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By ACE ALEGRE
www.nordis.net

BAGUIO CITY — The Commission on Audit found the Regional Development Council-Cordillera to have illegally paid P1.08M as incentives to staff members of the National Economic Development Authority (NEDA) and RDC executives.

The COA is now asking them to refund the “illegal” payments made to them. The COA said in its 2010 audit findings that the RDCs P1.08 government expenditure was irregular.

RDC is the institution that coordinates and sets the direction of all economic and social development efforts in the Cordillera. It is composed of all 6 provincial governors, Baguio’s mayor, all capital town center mayors, president of the Leage of Mayors and all regional directors of line agencies.

Art Aro, speaking in behalf of NEDA-Cordillera, which is acting as the secretariat of the RDC said, RDC’s answer to the observations of COA was already incorporated in the NEDA answer to the government audit agency.

COA cited the RDC’s comment on the grant to the NEDA personnel and RDC executives of the P1.08 million incentives was ”for additional workload”. 

However, COA insists, section 8, Article IX (b) of the 1987 Constitution stating that:  “No elective or appointive public officer or employee shall receive additional, double or indirect compensation unless specifically authorized by law.”  

It further cites that RDC provided no basis for additional compensation allowed under Section 59, Book VI, 1987 Administrative Code stating that, “officials and employees who are duly appointed by competent authority to any position in another government office or agency in a concurrent capacity, may, in the discretion of the President, be allowed to receive additional compensation in the form of allowances or honoraria at such rates he shall fix and subject to such conditions as he may prescribe.”

The COA added that although the P1.08 million incentive was charged to the RDC, it was paid out of the appropriation for Other Maintenance and Operating Expenses (MOOE).  “The incentive or honoraria and other allowances are proper charges to the appropriations for Personal Services,” the COA stated.

RDC however insists that the RDC’s function does not include the social preparation for autonomy, justifying the additional pay to staff members and other RDC executives.

But COA insists the autonomy drive became the RDC’s regular function citing Executive Order 30 issued July 30, 2001 mandating RDC-Cordillera to assume functions and powers of the defunct Cordillera bodies to prepare the region for autonomy. The audit agency reiterates that the autonomy fund is released by the budget department under the regular MOOE of the RDC.

COA, however, insists that the RDC to cause the refund of the incentives given to NEDA officials and employees as well as members of the RDC executive committee.

Government funds wasted

COA also found fault that RDC contracted a public relations and communications officer. It is “unnecessary” and is against COA circular 85-55A “resulting to the wastage of government funds”.

Although the RDC argued it needed the “PR officer” for the agency’s plans, programs and projects to get published in national and local newspapers,  

COA found “no basis” for it and tagged the contract as “unnecessary”, citing COA circular 85-55A “on rules and regulations in the prevention of irregular, unnecessary, excessive or extravagant expenditures”.

COA reviewed the RDC-PR officer contract and found out, “there is no parameter as to when an article is public relations (PR) material.”  It added, “the terms of reference are vague; thus, it appears acceptable to simply mention the agency even if the action being talked about was done by another agency.”

Hence, COA has recommended the RDC to stop the practice of hiring PR officers as “this is unnecessary.”

According to the NEDA, the PR officer was hired since September 2007.

COA also cited the RDC for other unmet recommendations in its 2009 audit report. # nordis.net