THE Cebu provincial government said it is ready to justify the incentives it gave to Capitol employees last year.
Cebu Gov. Hilario Davide III said they believe they are right in giving Productivity Enhancement Incentives (PEI) worth more than P5,000 to over 1,500 employees in December last year. “We will justify,” he said in a press conference yesterday afternoon.
In their annual report, the Commission on Audit (COA) asked the provincial government to require their employees to refund their bonuses totaling P29.9 million.
State auditors found that the Capitol gave P22,000 or one-month salary to each employee in contrast to the P5,000 rate allowed under a Department of Budget and Management (DBM).
In an earlier report, Provincial Budget Officer Danilo Rodas said there is no provision in the budget circular stating that there is a ceiling of P5,000 on granting incentives to employees.
He said the amount to be granted is determined by the respective councils and is dependent on the local government unit’s financial capability.
Lawyer Orvi Ortega, provincial legal officer, said that he will prepare the Capitol’s response to the COA.