COA denies PCSO appeal on Provident Fund disallowance in 2012

MANILA, Philippines – The Commission on Audit (COA) has rejected the Philippine Charity Sweepstakes Office’s (PCSO) petition for review regarding the disallowed P313.51 million payment to the PCSO Provident Fund in 2012.

The provident fund is meant to be used for employees’ retirement and loan benefits.

The PCSO’s petition was based on arguments that the funds were “special shares” representing extra employee contribution that allowed the employee to increase their individual share in the PCSO Provident Fund, and that the disbursements had “post facto” approvals of previous presidents Fidel Ramos in 1997 and 1998, Gloria Arroyo in 2001, and Benigno Aquino III through Executive Secretary Paquito Ochoa in 2011.

But the COA denied the appeal, saying that the release of the funds were not sourced from savings and nor did these have the approval of Department of Budget and Management (DBM). 

Because of these two factors, “This is considered an indirect payment of allowances and benefits without the requisite prior approval of the Office of the President,” the COA en banc said. 

Approvals by the president for the funds are only effective only for the year of request, and do not carry over, COA said. 

“It cannot be employed as an unbridled authority of PCSO to approve all past and future allowances, as the grant of such allowances remains subject to civil service and compensation laws.”

Held liable for the notice of disallowance are former PCSO general manager Jose Ferdinand Rojas II, PCSO Board chairperson Margarita Juico, Board Members Mabel Mamba, Francisco Joaquin III, Ma. Aleta Tolentino, and Betty Nantes, Budget and Accounting Department OIC manager Dorothy Robles, Administrative Department manager Venues Buado, Internal Audit Department manager Lauro Patiag, Human Resource Management officers Eutiquia Solis and Myrna Malana, and members of the Sweepstakes Employee Union.

The decision upholds the 2015 position of COA that the disbursement had been an attempt by PCSO members to circumvent the required authorization from the DBM and the Office of the President. – Rappler.com