PhilHealth bonuses and allowances questioned by COA

By , on January 29, 2015

PhilHealth. Photo courtesy of
PhilHealth. Photo courtesy of

MANILA — The Commission on Audit is questioning more than P1.761 billion in unauthorized bonuses and allowances of the employees of the Philhealth Insurance Corp. (PhilHealth) adding that the incentives are without legal basis.

COA said that the incentives stemmed from several board resolutions that were not submitted for the approval of the Office of the President.

PhilHealth gave the bonuses and allowances to its officials and personnel despite the prohibition because of the lack of legal basis, according to COA.

This act is equivalent to a violation of the rules under Presidential Decree 1597, the law rationalizing the system of compensation and position classification in the national government.

“Despite the issuance of the NDs and several decisions denying their appeals and affirming the disallowances, management continuously granted the aforementioned benefits and allowances without obtaining the required approval of the Office of the President,” the COA said.

According to recent records obtained from the state auditors, a total of P53.131 million worth of unauthorized incentives including subsistence and laundry allowances were given to officers of PhilHealth.

Productivity incentive allowances and bonuses of P302.954 million and hazard pay of P96.157 million were also given to them.

“We recommended that management stop granting said allowances and other incentives unless an approval from the Office of the President is obtained,” the COA report said.