DOT officials, employees must refund P162M disallowed cash perks: COA

ALL officials of the Department of Tourism who authorized the payment of various illegal allowances and benefits totaling P162.43 million in 2011 and 2012 are liable and obligated to refund the disallowed amount.

This was the ruling issued by the Commission on Audit that denied the Motion for Reconsideration filed by the DOT Employees Association (DOTEA) seeking a reversal of the January 24, 2022 decision that upheld the 2013 notices of disallowance.

With the denial of the appeal, COA chairperson Gamaliel A. Cordoba and Commissioners Roland Café Pondoc and Mario G. Lipana held that the assailed ruling is now “affirmed with finality.”

Copies of the ruling were furnished to DOTEA president Ramil Basuel and the Secretary of the DOT.

Based on audit documents, the disallowed amount included Collective Negotiation Agreement (CNA) Incentives (P10.99 million), educational assistance (P29.28 million), economic relief allowances (P29.99 million), economic assistance (P25.517 million) additional economic assistance (P15.321 million), additional economic relief assistance (P11.627 million), calamity bonuses (P5.815 million), and birthday bonuses (P5.965 million).

In the MR, Basuel said the CNA incentives should be exempt since it was paid before the Department of Budget and Management Circular No. 2011-5 took effect on February 25, 2012.

The DOTEA likewise appealed for “social justice and humanitarian consideration” on behalf of employees who are also required to refund their share of the disallowed amount.

However, the COA en banc said the exemption cannot be granted in light of the Supreme Court rulings making refunds mandatory even for ordinary employees who had no role in approving the disallowed benefits.

“The SC has clarified that the principles of unjust enrichment and solutio indebiti apply regardless of the good faith of passive recipients. The disallowance is proper because the payment of the disallowed benefits was both unauthorized and contrary to existing DBMI and administrative guidelines,” the COA said.

Held liable in the 2022 decision were former DOT Secretaries Alberto A. Lim and Ramon R. Jimenez Jr. (+) chief accountant Violeta Florentino; Administrative