AUG 15, 2016

NR # 4293

Solon seeks to disallow govt entities from providing additional pay &
benefits to COA auditors assigned in their areas
A lawmaker is seeking to disallow all government entities, including government-owned
and controlled corporations and local government units (LGUs), from funding additional
compensation, allowances, honoraria, bonuses and other emoluments of officials and personnel
of the Commission on Audit (COA) stationed in or assigned at their respective offices.
Rep. Erlpe John M. Amante (2nd District, Agusan del Norte) said his proposal aims to
preserve the independence, morality and integrity of the COA and assure the people there are
concrete safeguards in the government spending of public funds.
To carry out the constitutional mandate of the COA and to preserve the independence,
morality and integrity of the commission, its officials and personnel must consciously isolate
themselves with the enticing financial temptations given to them by other government entities,
said Amante.
Amante cited Section 18 of Republic Act 6758, otherwise known as the Compensation
and Position Classification Act of 1989, which provides that COA officials and personnel are
prohibited from receiving salaries, honoraria, bonuses, allowances or other emoluments from any
government entity, LGUs, GOCCs and government financial institutions (GFIs), except those
compensation paid directly by the COA out of its appropriations and contributions.
However, he said the enactment of the Local Government Code of 1991 created confusion
whether the provision of the LGC, particularly authorizing the LGUs, subject to the condition
that if their local finances allow, automatically and impliedly repeal the provision of RA 6758 on
the prohibition on COA officials and personnel to receive additional compensation from the
LGUs.
Amante said in the case of Villarena vs. COA, GR No. 145383-84 dated August 6, 2003,
the Supreme Court decided that the apparent inconsistency with the two laws should be
reconciled by regarding the prohibition stated in RA 6758 as an exemption or limitation to the
authority of local legislative bodies under RA 7160.
Though there are existing ruling of the High Court and memorandum orders from the
COA
regarding
this
matter,
there
are
still
LGUs
and
resident
COA auditors who are continuing this practice. In fact, there are still resident COA auditors who
present and defend their annual allocation from the LGUs before the Sanggunian for the
inclusion in the LGUs annual budget. Through this, we can never discount and remove in the
mind of our people there are possibilities that they may be influenced by their benefactor LGU,
said Amante.
Amantes House Bill 1395 or the proposed Anti-Patronage in State Auditing Act of
2015, declares it unlawful and illegal for COA officials and personnel, especially those who are
stationed or assigned in the government entities, including GOCCs, GFIs and LGUs, to receive

all forms of additional compensation, allowance, honoraria, bonus, and other emoluments
directly paid by the COA out of its annual budget and appropriations.
The bill also prohibits government entities from allocating funds out of their respective
office budgets and appropriations for the additional compensation, allowance, honoraria, bonus,
and other emoluments for the service rendered by the resident COA auditors and their personnel
in performing their official functions.
Erring COA officials and personnel shall, upon conviction, face imprisonment of six
months and one day to 12 years and perpetual disqualification from public office. They shall also
refund all previously received funds from government entities other than the COA.
Likewise, erring officials of government entities, including GOCCs, GFIs and LGUs, who
caused the release of the additional compensation and benefits to COA officials and personnel
shall, upon conviction be imprisoned for six months and one day to 12 years, and perpetually
disqualified from public office.
The COA chairman, in coordination with Department of Interior and Local Government
(DILG) and the Governance Commission for GOCCs, shall issue the rules and regulations and
Department Orders necessary to implement the Act.
The bill is now pending at the House committee on appropriations chaired by Rep. Karlo
Alexei Nograles (1st District, Davao City). (30) rbb