CoA orders Napolcom to refund P5.8M in 'unauthorized' allowances, benefits

The Commission on Audit (CoA) has ordered the National Police Commission (Napolcom) to refund P5.8 million in “unauthorized” allowances and benefits given to its officers in 2023, despite previous years’ recommendations by state auditors to cease such activities.

Audit findings revealed that Napolcom Regional Office 6 continued to distribute a total of P5,823,820 to its officials and employees last year “without legal basis.”

The same concern was raised by the audit team as early as 2019 and 2020, flagging more than P5 million and over P25 million, respectively, in unauthorized allowances granted by the agency without legal basis or specific authority.

Apart from the latest transaction in question, the CoA noted that Napolcom also granted unauthorized incentives to its officers and employees in previous years.

“The continuous grant of unauthorized benefits demonstrated that management in Region VI did not take the audit findings, recommendations, or NDs (notice of disallowance) seriously since they asserted that the disallowances are still under appeal. Moreover, it demonstrated the inadequacy of the internal controls,” the auditing body stressed.

The CoA was referring to the NDs amounting to P22.4 million issued against Napolcom in prior years. An ND is issued by state auditors for "irregular/unnecessary/excessive and extravagant" transactions, as well as those considered illegal and unconscionable.

The breakdown of unauthorized transactions showed that the lion’s share, totaling P1.63 million, was used for the distribution of basic commodity allowances, while P1.56 million was spent on special welfare allowances.

Meanwhile, P1.22 million was distributed for rice subsidy allowances, P612,000 for dietary supplements, P510,000 for annual laboratory tests, P170,000 for ISO incentives, and P116,820 for food basket allowances.

Auditors emphasized that under Section 4 of the Government Auditing Code of the Philippines, no money shall be paid out of any public treasury or depository except in pursuance of an appropriation law or other specific statutory authority.

“The lack of basis for continuously granting the allowances and benefits resulted in wastage of public funds which could have been utilized for other meaningful projects and activities of the agency,” the CoA stated.

Napolcom explained that Regional Office 6 had already agreed to stop the payment of unauthorized allowances this year. However, it said a refund would only be made depending on the decision regarding the appeal filed by all persons liable for the said funds.