TRC pampered officials, employees with P20.47-M of unauthorized benefits – COA report

The Technology Resource Center (TRC), a soon-to-be-abolished government-owned and controlled corporation (GOCC), pampered its officials and employees with P20.47-million worth of unauthorized bonuses and other incentives in 2014, the Commission on Audit (COA) has claimed.

Based on its analysis of the TRC's book of accounts as of December 31, 2014, the commission said a total of P20,470,468.74 in fringe benefits and allowances was granted by the agency to its officials and employees and was recorded under its Miscellaneous Services account.

The COA made the revelation in an annual audit report published on its website.

Based on the COA report, the alleged unauthorized grants included Omnibus Allowances amounting to P15.766 million, Economic Incentives worth P4.664 million, and Mid-year Bonus Differentials totaling P39,462.42.

A review of the TRC's approved Corporate Operating Budget for 2014 revealed that the Department of Budget and Management (DBM) disallowed the giving of bonuses and incentives under the Miscellaneous Services, “hence, payment of said personnel benefits had no legal basis,” the state auditors said.

The commission pointed out that under Section 4 of Presidential Decree 1445 or the Government Auditing Code of the Philippines, “no money shall be paid out of any public treasury or depository except in pursuance of an appropriation law or other specific statutory authority.”

The COA said that for national government agencies and GOCCs, the authority to give bonuses and incentives must come from the DBM or the Office of the President.

The state audit body further said that “despite repetitive issuance of Notices of Disallowance and audit recommendations to refund and stop the grant of Omnibus Allowance and Economic Incentives for lack of legal basis, Management continued paying the same.”

Elevating the matter

The commission recommended that the TRC management stop paying allowances and incentives and return what has been paid out unless it is able to obtain approval from the DBM or the Office of the President.

In a letter of reply to the audit report, the TRC Legal Services Division maintained that the agency has the legal basis and valid cause for giving out the allowances and economic incentives and said that the payments “have been part and parcel of every employee’s hard earned budget.”

The TRC is elevating the matter to the Supreme Court (SC) should the commission deny its appeal on the Notice of Disallowance the commission issued in 2012.

“TRC strongly believes that the audit observation/recommendation is a pure question of law which must be resolved, no less, by the Supreme Court... However, pending the Commission’s resolution/decision, we recommend that the TRC Management stop the grant of the above-mentioned fringe benefits/allowances,” the COA said in a rejoinder to the TRC letter.

The TRC became controversial following reports that it was among the three GOCCs used as conduits in the misallocation of the Priority Development Assistance Fund (PDAF) or pork barrel of several lawmakers to fake foundations linked to the alleged pork barrel scam mastermind, Janet Lim-Napoles.

The other GOCCs dragged into the pork barrel scam were the National Livelihood Development Corporation (NLDC) and the National Agri-Business Corporation (NABCOR).

Top officials of the TRC, together with several lawmakers, are facing charges before the Sandiganbayan in connection with the anomaly.

The Office of the Ombudsman has also ordered the dismissal from government service former TRC director general Dennis Cunanan and four other TRC officials for administrative offenses also in connection with the pork barrel scam.

In an August 8, 2014 memorandum, the Governance Commission for GOCCs (GCG) and the Office of the President, represented by Executive Secretary Paquito Ochoa, approved the abolition of TRC. – VS, GMA News