City asks COA to reverse calamity aid disallowance

CEBU City officials have appealed to the Commission on Audit (COA-7) office to reverse and set aside its Notice of Disallowance on the P20,000-calamity aid given to employees in 2013.

In an appeal memorandum, City Legal Office Jerone Castillo pointed out that the calamity assistance was considered as a form of donation to City Hall employees after the 7.2-magnitude earthquake and supertyphoon Yolanda in 2013.

As such, it is a valid exercise of local fiscal autonomy, he said.

“Granting of aid is a valid exercise of local fiscal autonomy. Perhaps the audit team, in making its observation failed to consider that the Local Government Code of 1991, section 458 mandates the Sangguniang Panlungsod to provide relief services and assistance to victims during and in the aftermath of disasters or calamities,” Castillo said in the appeal.

Last January, the COA issued a Notice of Disallowance on the disbursement of the calamity aid amounting to around P84.4 million.

They also ordered City Hall to refund the amount within six months unless appealed.

But Castillo reasoned that calamity assistance is not considered as a payment for services or regular expense but is a gratuity assistance or donation.

He also reiterated their previous stand that the disbursement is covered by a validly passed supplemental budget ordinance by the city council. As an ordinance, it can only be attacked and questioned in court but until now there is no court action so it remains valid and operational, he explained.

“Appellants acted in good faith and faithfully relied on the ordinance granting the calamity assistance. Thus, granting in arguendo that there is cause to disallow the grant of calamity assistance, appellants should be relieved from personal liability,” Castillo said.