NIA, Landbank the GOCCs that give contractual workers the most perks without legal basis

The National Irrigation Administration (NIA) and the Land Bank of the Philippines have topped the Commission on Audit's list of government-owned and -controlled corporations (GOCC) that give their job order and contractual employees the most perks without legal basis.

The COA said 17 GOCCs paid at least P593 million in additional compensation to their contractual employees in 2017, with NIA accounting for P250.161 million and Land Bank P196.250 million of the total.

Other GOCCs named in COA's 2017 annual financial report include government-run television networks IBC 13 (P48 million) and People's Television Network (P10.486 million); the Government Service Insurance System (P22.685 million); and the National Home Mortgage Finance Corporation (P22.174 million).

State auditors said these perks can be in the form of additional compensation and personnel economic relief allowance, retirement benefits, gratuity benefits, separation pay, financial assistance, collective negotiation agreement, or other incentives granted by a GOCC's Board of Trustees or Directors.

However, the COA said the GOCCs failed to adhere to existing laws and rules, such as securing presidential approval, on the rationalization of compensation for job orders and contractual workers.

The COA thus ordered the government corporations to adhere to pertinent rules and submit documents indicating the approval of the Office of the President on the added perks.

If none, the commission said the GOCCs must "discontinue the payment of compensation/allowances/benefits/incentives in the absence of legal bases/authority to grant the same."

Reimbursements

The COA also flagged four GOCCs for the reimbursement of gasoline, transportation, telephone, and overtime expenses in excess of allowable rates.

The Manila International Airport Authority handed out the most reimbursements (P115.878 million), followed by the Nayong Pilipino Foundation (P851,000), Food Terminal Inc. (P271,000), and the Light Rail Transit Authority (a "non-quantifiable" amount, or too small to include).

The COA recommended that these GOCCs secure approval from the Department of Budget and Management first before reimbursing the overtime expenses of their contractual employees that are 50 percent above the limit.

It likewise ordered them to stop the practice of granting reimbursements beyond the allowed rates and direct concerned employees to refund the added perks. — BM, GMA News