COA: SolGen Calida got P7.46M in excess allowances last year

Solicitor General Jose Calida got more than P7.46 million in excess allowances in 2017, covering more than 70 percent of the P10.77 million in honoria given to 15 officials of the Office of the Solicitor General for their legal services, the Commission on Audit (COA) said in its annual audit report.

State auditors said Calida received a total of P8.376 million in allowances last year either through the OSG-Financial Management Service (FMS) or received the funds directly.

Thus, P8.376 million minus  the P913,950 maximum allowable allowances would result in P7.46 million in excess. 

The COA said this is contrary to COA Circular 85-25-E dated April 25, 1985 which states that government officials can only receive allowances which will not exceed 50 percent of their annual basic salary.

This means, Calida, who earns P1.827 million yearly, can only receive additional allowances of up to P913,950. 

State auditors had flagged Calida over the same issue in 2016, when he reportedly received P1.123 million while his predecessor, Florin Hilbay, received P4.662 million. 

Based on COA records, 14 other OSG officials who received excess allowances in 2017, namely: Henry Angeles, Herman Cimafranca, James Cundangan, Renan Ramos, Rex Pascual, Bernard Hernandez, Ma. Antonia Edita Dizon, Raymund Rigodon, Danilo Leyva, Lilian Abenojar, John Dale Ballinan, Perfecto Adelfo Chua Cheng, Leney Delfin-Layug and Gift Mohametano.

"The honoraria/allowances paid to some OSG officers for legal services and advice rendered to client agencies had exceeded the fifty percent of the annual basic salary by P10,774,283.92 —contrary to Item 4 of COA Circular No. 85-25-E dated April 25, 1985," COA said.

It added that the OSG-FMS failed to require OSG lawyers of the honoria or allowances they received from their clients, resulting in improper monitoring of these benefits for taxation purposes.

Clients that sought the services of the OSG lawyers include the Development Bank of the Philippines which paid P1.6 million to the OSG, the Department of National Defense (P480,000), Occidental Mindoro State College (P148,500), and the Central Bank of Board Liquidators (P123,675).

COA recommended that OSG lawyers "refund the excess amount received and deposit the same to the OSG's Trust Fund."

In response, the OSG argued the legality of the additional compensation, citing Presidential Decree 478 and Executive Order 297 that "authorize OSG lawyers to receive allowances and honoraria for the legal services they render without qualification."

State auditors COA, however, reiterated its stance on the irregularity of the allowances the 15 OSG lawyers had received.

"We still maintain our view that the receipt of honoraria/allowances in excess of 50% of their annual salaries must be subject to limitation as set forth under COA Circular No. 85-25-E," COA said in its rejoinder.

Seven OSG staff only received less than P4,000

In contrast, the COA highlighted the compensation of seven OSG employees who received below the mandated minimum take home pay of P4,000 due to payroll deductions from repayments of unpaid amortizations on various loans.

It said the practice is in violation of Section 47 of the General Provisions of the General Appropriations Act of 2017.

Six OSG employees received around P3,000 while one only had a take home pay of P1,008.72, COA records show.

"We recommended that management strictly enforce and implement the provisions stipulated in the GAA [General Appropriations Act] on the minimum take home pay of employees," COA said.

But the OSG management told COA that the Provident Fund Board agreed to extend the term of the employees' multi-purpose loans from 36 to 48 months.

COA’s exposé on excess allowances is the latest controversy being hurled at Calida, including the multi-million-peso government contracts secured by his family's security firm, resulting in calls for his resignation.

Amid resign calls over his security firm's deals with the government, Calida said quitting from his post has never crossed his mind, adding that he can "handle all  attacks" against him. —LBG/KBK, GMA News