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Manila Bulletin devider Philippines devider National devider COA disallows P34M spent by Napocor for private health insurance of employees

COA disallows P34M spent by Napocor for private health insurance of employees

Published Feb 20, 2023 03:15 pm

Commission_on_Audit

The Commission on Audit (COA) has disallowed the payment by the National Power Corporation (Napocor) of P34 million as premiums for the private health insurance of its employees from 2014 to 2015.

In a decision, COA declared that the payment was an “illegal expenditure” and held liable the Napocor officials responsible for the disbursement of the fund.

On July 21, 2015, COA issued Notice of Disallowance No. NPC 15-008(14) on the payment of premium for the Group Hospitalization and Life Insurance Plan (GHLIP) of its employees to the Power Generation Employees Association (PGEA) for the period of April 1, 2014 to March 31, 2015 amounting to P34,047,188.03.

Those who appealed the notice of disallowance were President and Chief Executive Officer Ma. Gladys Cruz-Sta. Rita, Vice President-Administration and Finance Lorna T. Dy, Senior Department Manager Alexander P. Japon, Manager-Disbursement Accounts Monitoring Division Monica R. Legaspi, Section Chief Marina del Rosario, and Manager-Human Resource Department Marciana B. Guinto.

They told COA that the payment of premiums for GHLIP was a program for the improvement of working conditions of NPC employees, so they should not be made to refund the amount.

They also said that the GHLIP was given by virtue of Labor Management Consultative Committee (LMCC) Resolution No. 2014-001 which authorized the utilization of the savings for the Maintenance and Other Operating Expenses for calendar year 2013.

But COA did not listen to their plea which it found “devoid of merit.”

It said the payment of GHLIP premium for the PGEA-NPC members, an association of employees of the state power firm, was an "illegal expenditure" that violated Section 12 of Republic Act No. 6758, the law that prescribes a revised compensation and position classification system in the government.

It explained that all allowances and compensation of government personnel, with some exceptions, are consolidated into the standardized salary of the employees. Since the procurement of GHLIP for the PGEA-NPC members provides additional compensation, the COA said this is "properly disallowed."

"Clearly, the approving and certifying officers are solidarily liable to refund the amount disallowed, while the recipient-beneficiaries are liable only to the extent of the amount that they have been benefitted," it declared in its decision.

TAGS: #COA #Napocor #Napocor employees’ insurance

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