COA upholds disallowance of COVID-19 aid to FDCP employees

MANILA, Philippines – The Commission on Audit (COA) upheld its decision to issue notices of disallowances against the Film Development Council of the Philippines’ (FDCP) distribution of financial aid to its employees during the COVID-19 pandemic. 

After COA issued notices of disallowances on March 8, 2021 in relation to the FDCP’s COVID-19 aid to its employees, the agency filed a petition seeking to revoke the notices. 

FDCP officials and regular employees received health assistance amounting to P476,896.87. It was found that these allowances were not cleared by the Department of Budget and Management before they were issued. 

Meanwhile, P5,000 was distributed to each contractual and job order employee for food and groceries – amounting to P400,000. As these funds were handed out to non-permanent employees, COA has tagged it as an “irregular expenditure.” 

According to COA Circular No. 2012-03, “irregular expenditures” are funds distributed without complying with set laws and regulations. 

As there is no law authorizing the distribution of the food allowances, rice subsidies, and healthcare allowances, the distribution of these funds is then deemed to have no legal basis and is thus considered “irregular expenditures,” state auditors said.

The non-permanent employees will be required by COA to return the P5,000 they received. 

The FDCP officials who approved the distribution of the healthcare, food, and grocery allowances totaling P876,896.87 will be held liable for the said amount. 

Former FDCP Chairperson Liza Diño, Executive Director Ria Anne Rubia, Chief Administrative Officer Emelita Alquiza, and Budget Officer Jose Carlos Pasion, among others, were held liable by COA. – Rappler.com