CoA flags Iloilo town ‘incentives’

The Commission on Audit has (CoA) flagged nearly P800,000 in allowances and incentives given to officials and employees of Lemery town without legal backing.

State auditors said that the 2023 audit report revealed each municipal worker received a P2,000 productivity incentive bonus, totaling P208,000, but a 2012 joint circular by the Civil Service Commission and Department of Budget and Management ended such bonuses in 2015.

The CoA also found the town paid P244,000 in mobile load allowances to department heads and members of the town council.

In addition, the town in May gave out P291,000 in advance cash gifts to all employees, contrary to a 2016 budget department rule requiring such bonuses to be given no earlier than 15 November.

"The payment of the productivity incentive allowance and communication allowance, without legal basis, and the grant of cash gift in advance were considered as irregular disbursement of government fund," the auditing body said.

Lemery Mayor Oscar Villegas Jr. and the Sangguniang Bayan, meanwhile, vowed that they will adhere to CoA's directive to ensure that the payment of allowances and other benefits to officers and employees are expressly provided by law, and other statutory authorities, to avoid the incurrence of irregular expenditures of government funds.