THE Board of Directors (BOD) and the Bids and Awards Committee (BAC) of the Philippine Postal Corporation (Philpost) are liable for the full refund of the P8.15 million spent on the agency’s private health plan.
This was the pronouncement of the Commission on Audit in a decision released yesterday declaring that the Health Maintenance Program approved by the Philpost in 2015 was unlawful.
With the ruling, the COA Commission Proper affirmed the stand of the COA Corporate Government Sector to deny the appeal of the Philpost executives.
Held liable in the notices of disallowance were former postmaster general and BOD chairperson Ma. Josefina M. dela Cruz, vice chairman Cesar Sarino and board members Bituin Salcedo, Fidel Bugayong, Mario Lorenzo, Victor Alimurung, Jay Lacsamana, Mariano Aureus Jr., and Joselito Sibayan.
Likewise included were BAC chairman Jaime Rebultan Jr. and members Sheila Emata and Patria Madrio.
Rank and file employees were also required to reimburse Philpost but only for the amounts they actually received.
“The natural consequence of a finding that the allowances and benefits were illegally disbursed, is the consequent obligation on the part of all the recipients to restore said amounts to the government coffers,” the COA explained.
According to records, Philpost procured health care insurance from the Philippine British Assurance Company Inc. (PBACI) for the period covering August 10, 2015 to August 9, 2016. Aside from the agency personnel, coverage was extended to two of their dependents.
However, auditors issued a notice of disallowance on the ground that COA Resolution No. 2005-001 had already barred private health insurance by any public office.
“Per COA Resolution No. 2005-001, the procurement of private health insurance by any agency or instrumentality of the government is an irregular expenditure and constitutes unnecessary use of public funds,” the commission declared.
Both the BOD and BAC were held solidarily liable for having authorized, approved or certified the grant or payments for the private health plan without first securing the permission of the Office of the President or the Department of Budget and Management (DBM).
“The laws and rules requiring prior approval from the OP and the Department of Budget and Management were already effective prior to the grant of the subject allowances and benefits. They cannot feign ignorance of the presidential directives or laws in granting the unauthorized allowances and benefits,” the COA said.