Audit Commission concludes that birthday gifts given as cash benefits have no legal basis and amount to double compensation

MANILA, Philippines – The Commission on Audit (COA) has ordered officials and employees of the Philippine Health Insurance Corporation (PhilHealth) to return cash birthday gifts they received in 2014 worth P6.35 million.

The COA dismissed the cash donations for lack of legal basis and considered them double compensation.

In its appeal, PhilHealth argued that birthday gifts in the form of cash benefits were not new. It asserted that it had autonomy as a government financial institution and was entitled to enjoy the same independence as other IGFs.

However, the COA said these arguments had already been considered and dismissed.

“The arguments raised by PhilHealth are a mere repetition of the arguments contained in its review petition, which have been judiciously considered and approved in the decision,” the COA said.

The state auditors also invoked the Supreme Court ruling PhilHealth vs. COA 2022, where the payment of birthday gifts to staff was declared to have no legal basis as it was not among the non-integrated allowances permitted in the Compensation and Job Classification Act.

“If only to reiterate, the extent of PhilHealth’s power to fix the remuneration of its personnel and determine the granting of allowances and benefits to its officers and employees is not absolute and is subject at all times to existing rules and regulations,” the COA said. .

The COA held the following PhilHealth personnel responsible:

• Former PhilHealth President and CEO Alexander Padilla
• Ann Marie San Andres, senior manager of the Comptroller’s Department
• Hannah Lorraine Dalisay, Head of the Accounting and Internal Control Division
• Fiscal Comptroller IV Juvy Balolong
• Marilou Navarroza, head of the Budget Division
• Fiscal Comptroller IV Willie Bumacod
• Senior Manager Arsenia Torres
• Officer-in-Charge of Human Resources Department Jonathan Mangaoang
• Division Head Human Resources Department Alejandro Dennis Lim
• Fiscal Comptroller III Teresa Tindoy
• Fiscal Comptroller III Rommel Reyes
• Fiscal Comptroller III Dalisay Satrain
• 635 employees (beneficiaries/recipients)

– Rappler.com