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PhilHealth debunks COA report on P1.448 B worth of bonuses


The Philippine Health Insurance Corporation (PhilHealth) is debunking a Commission on Audit (COA) report claiming the the state-run health insurance system gave its officials and employees P1.448 billion worth of bonuses and allowances last year.
 
On October 10, the commission revealed that officials and employees of PhilHealth were given  bonuses and allowances totaling P1.448 billion despite a P3.8-billion shortfall in its reserve fund requirement for 2012.
 
COA, which labeled itself as “The Philippines' Supreme Audit Institution,” gave PhilHealth until Nov. 12 to respond to its report.
 
"We're going to challenge COA's findings,” Alexander A. Padilla, PhilHealth president and CEO, told GMA News Online in a phone interview Tuesday. “Our response is being readied and will be submitted earlier than November 12," Padilla noted.
 
The PhilHealth official said P1.448 billion included bonuses and expenses, noting the insurer received the initial COA report last week.
 
COA claimed its did not allow the PhilHealth bonuses “for lack of legal basis,” but the management disregarded the state auditor's notices by awarding incentives based on resolutions passed by the PhilHealth board of directors.
 
“Despite issuance of notices of disallowance and denial of the consolidated appeal of (PhilHealth) management by the Cluster Director, Corporate Government Sector (CGS-CoA), management continuously granted the aforementioned benefits and allowances without obtaining the required approval of the Office of the President,” CoA said.
 
Padilla said PhilHealth has been giving out bonuses and benefits in the past, and no questions have been raised.
 
"We have our legal basis, as stated in Sec. 16 n of RA (Republic Act) 7875. Past allowances 'to, 'di na bago," he noted.

'Mali ang COA'
 
RA 7875, Sec. 16 n. states that PhilHealth has the power and function "to organize its office, fix the compensation of and appoint personnel as may be deemed necessary and upon the recommendation of the president of the Corporation."
 
"Now, this is a question of interpretation of the law,” Padilla said.
 
“They have their own interpretation, we have our own. Sasagutin pa lang namin ang report at magkakaroon pa ng conference with COA. It's unfair na inilabas agad ang report," he added.
 
According to the commission, PhilHealth regional managers were given benefits on orders of the PhilHealth head office.
 
These were all given to PhilHealth personnel even though the agency posted a P3.68-billion shortfall in retained earnings to P115.08 billion last year, or below the reserve fund requirement of P118.76 billion, COA reported.
 
“The viability and sustainability of the National Health Insurance Program is at risk due to the further decline in the RE balance,” COA noted.
 
Personnel services and maintenance and other operating expenses went up by P410 million due to "the continuous granting of personnel benefits and allowances which were disallowed in audit due to lack of legal basis,” COA said.
 
Padilla disagreed, noting that there was no shortfall, saying the insurer even surpassed the fund requirement by 5 percent to about P125 billion in 2012.
 
"Mali ang COA. We have more than enough (reserves)," he said.
 
"At 'di rin totoo na bonuses lang “yan (P1.448 billion). May miscellaneous operating expenses and collective negotiation agreements expenses included sa amount," he added. – VS, GMA News
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