COA: Pag-IBIG retirement packages for top execs illegal

Some 60 executives and employees of the Pag-IBIG Fund received double their intended retirement benefits in 2013, the Commission on Audit (COA) said in an audit report released last week.

In the same report, the COA directed Pag-IBIG to remit back to the government the P130.37 million in benefits that were illegally released to them.

In its annual audit report of the Pag-IBIG — or Home Development Management Fund — the COA said it found out that the 60 executives received similar benefits totalling P52.445 million from the Government Service Insurance System (GSIS).

“The payment of the Early Retirement Incentive Plan (ERIP) benefits to 60 HDMF officers and employees in the amount of P130.375 million constitutes supplementary and double payment as the ERIP was paid on top of the regular GSIS retirement in the total amount of P52.445 million,” the report said.

Since the retirement benefits were illegal, the COA tasked Pag-IBIG to demand the return of the P130.37 million in retirement benefits.

“We recommended that Management demand from the concerned retired employees, the refund of the retirement benefits received from HDMF, as they have also claimed retirement benefits from GSIS for the same service rendered. For this purpose, send demand letter to the 60 officers and employees, copy furnish the office of the COA Auditor,” the COA report said.

The COA also tasked Pag-IBIG to institute safeguards so that other retiring employees will not be given double benefits upon retirement and to justify the ERIP.

“While we recognize that the ERIP is a valid charter provision, submit relevant documents indicating that HDMF Management has issued and instituted measures or control that will prevent double payment of retirement benefits since existing HDMF policy allows the applicant to claim regular retirement benefits.  Otherwise, stop immediately the ERIP program,” the report said.

Meanwhile in the same report, the COA tasked Pag-IBIG to demand the completion of 440 housing units in Cebu.

“As of December 31, 2013 only 112 housing units are completed while the land development was only 70% completed, contrary to pertinent provisions of the Memorandum of Agreement. We recommended that Management require the developer to immediately complete the project and impose the prescribed liquidated damages and penalties and exhaust all legal remedies to recover the Fund exposures on the project,” the report said. —Patricia Denise Chiu/KBK, GMA News