Mandaue City Hall. | CDN Digital file photo
MANDAUE CITY, Cebu – Officials and employees of the Mandue City Hall may be asked to pay refund of the Charter Day bonus that they received in 2023 if its release is not justified.
But this early, Atty. Jamaal James Calipayan, the Mandaue City Administrator, expressed confidence that they will be able to provide a legal basis for the release of the cash incentive and prevent the issuance of a notice of disallowance by the Commission on Audit (COA).
City Hall set aside P11.58 million in 2023 for the release of Charter Day bonuses at P15, 000 each to the at least 900 regular, elective, and appointed employees.
READ: Mandaue’s Charter Day bonus reduced to P3,000 this year
They were also given year-end bonuses that is equivalent to a month’s salary.
Government auditors flagged down both releases.
Calipayan said they received a copy of the notice of suspension for the release of the 2023 Charter Day bonus just last week and were given by COA 90 days to provide a legal justification for its release.
READ: Mandaue City employees to get Charter Day bonuses
State auditors have also issued earlier a separate notice of suspension for the release of the 2023 yearend bonus.
“Atoa tong tubagon, amoa tong ibutang ang legal basis. Positive ang atoang outlook nga masettle ra ni siya,” Calipayan said.
Irregular expenditures
In its 2023 Audit Observation Memorandum, COA said that the release of the Charter Day bonus was not based on any relevant issuance or regulation, a violation of Circular No. 2012-003, which defines irregular expenditures as those that are not in line with established rules.
READ: Mandaue gov’t employees to get bonus on city’s Charter Day
Section 4 of the Local Budget Circular No. 65 that was issued by the Department of Budget and Management (DBM) on March 3, 1997, also states that “anniversary bonuses shall only be granted during milestone years, which refers to the 15th anniversary and every fifth year thereafter and that bonuses should not exceed P3,000.”
“That’s the reason nga wala sa ta ron [mo-implement sa P15,000 Charter bonus]. Dili ta ganahan nga mabuild-up na hinuon ang atoang suspension audit nga mga bonuses,” said Calipayan.
Calipayan said they wanted to avoid the issuance of a notice of disallowance because this would mean that the recipients of the bonuses will be asked to pay refund of the amount that was disallowed.