COA flags CAB’s ‘unauthorized, irregular’ release of P2.4M medical allowances

State auditors have flagged the Civil Aeronautics Board (CAB) over the “unauthorized and irregular” release of millions in medical allowances to its employees.

In its 2020 report, the Commission on Audit (COA) said 84 permanent employees, 19 casual employees, and 13 job order employees of the CAB received medical allowances totaling P2.4 million in September 2020.

Among the permanent employees, 83 got P25,000 each and one got P12,500. The casual and job order employees received P10,000 each.

COA learned that the medical allowances were part of the negotiation between the CAB and the CAB Employees Association, which says “management shall continue to provide the CAB employees free annual medical and dental assistance that will be subject to availability of funds in absence of any legal impediment.”

State auditors pointed out, however, that there is no law authorizing the release of the medical allowances since it is not within the purview of Salary Standardization Law (SSL) of 2019 nor the Joint Resolution No. 4 dated June 17, 2009.

COA said any payment of benefits beyond the scope of the SSL should be approved by the President beforehand.

“Absent such approval, the payment of the medical allowance to CAB officers and personnel is therefore unauthorized and irregular,” it said.

“We recommended for all CAB officials and personnel to refund the amount paid for medical allowance and stop the grant thereof,” it added.

CAB response

In response, the CAB said it found nothing irregular in the release of medical allowances to its employees.

The agency said the SSL “could not have contemplated extraordinary circumstances” such as the coronavirus pandemic.

“These difficult times have prompted adaptive responses to the pandemic to fend [off] the impact and effects without sacrificing excellence and mitigating health and safety risk,” it said.

CAB also said the medical allowances should be treated as a “compelling and justifiable measure” due to the hardships and financial constraints suffered by its employees amid the pandemic.

CAB said the bases of its granting of medical allowances were guidelines issued by the government's inter-agency COVID-19 task force, the Bayanihan 2 law, and a joint memorandum of the health and labor departments and the Civil Service Commission.

The COA maintained that the allowances were irregular.—AOL, GMA News