THE Commission on Audit has denied separate petitions for review filed by former Puerto Princesa City mayor Edward Hagedorn and 25 other former and incumbent officials and employees of the city government seeking the lifting of the disallowance on the release of P89.67 million for an early retirement program.
In a nine-page decision released yesterday, the COA Commission Proper held that all city officials who approved and processed the Early and Voluntary Separation Incentive Program (EVSIP) in 2011 and 2012 must return the money to the city coffers, together with all the former employees who accepted part of the sum.
“The approving or certifying officers, who are directly responsible for, or participated in making the illegal expenditures, and each employee who received the disallowed benefits are obligated, jointly and severally to refund the amount so received,” the commission said.
In their appeal, the city officials asserted that City Ordinance No. 438 passed by the Sangguniang Panlungsod supporting the EVSIP was valid unless otherwise declared by a competent court.
The non-elected officials added that they merely implemented the said ordinance since they had no participation in its passage, enactment, and approval.
The rank and file employees on the other hand invoked good faith, saying they should not be made to refund the money received out of the honest belief that they were entitled to it.
Those who filed the first petition for review were former city accountant Nanette Dario, former and incumbent budget officers Ruben Francisco and Regina Cantillo, former treasurer Armando Abrea, city accountant Aida Dusong, assistant city accountant Rosalia Ortiz, local treasury operations officer Norma Dacuan, former assistant city treasurer Belen Larrosa, and city engineer Sergio Tapalla.
Joining Hagedorn in the second petition were Sangguniang Panlungsod members Vicky De Guzman, Mark David Hagedorn, Eleutherius Edualino, Rogelio Castro, Miguel Cuaderno IV, Marivic Javarez, Rebecca Labit, Douglas Hagedorn, Patrick Alex Hagedorn, Trisha Mae Asuncion, and Fernnie Mae Asuncion; SP secretary Samson Negosa, acting legal officer Shirley Daganta, former and incumbent human resources officers Felimon Sabas and Expedito Anigan, and senior bookkeeper Aquilino Cariño, Jr.
The COA Commission Proper upheld the audit finding that the grant of the EVSIP amounted to an additional compensation since city personnel already had a retirement package under RA 8291 or the Government Service Insurance Act of 1997.
“A valid ordinance must not contravene a statute… local political subdivisions are able to legislate only by virtue of a valid delegation of legislative power from the national legislature. The issuance of the NDs by this Commission is an exercise of its authority to implement the law and jurisprudence on the prevention of illegal and irregular expenditures or uses of government funds,” the COA declared.
