MANILA — The Commission on Audit (COA) has questioned the propriety and validity of the P5.025-million grocery allowance and COVID-19 response assistance given by the Department of Human Settlements and Urban Development (DHSUD) to its personnel.

In the 2021 audit report on the DHSUD, state auditors noted that the agency’s management agreed to instruct its accountants to submit the supporting documents on the payment of grocery allowance and COVID-19 assistance to its officials and employees amounting to P3.465 million.

The DHSUD also agreed to refund the P1.46-million grocery allowance received by consultants and contract-of-service (COS) personnel.

But the allowances received by DHSUD personnel were against Presidential Decree No. 1445 or the Government Auditing Code, as well as a COA circular and a resolution of the Government Procurement Policy Board, according to the audit team.

“Stop the practice of granting additional benefits to officials and employees without legal basis,” the COA said.

The audit team said that while the agency’s effort in giving extra incentives to its officials and employees may deserve commendation, it should be based on existing rules and regulations.

“Otherwise, the payment of the above assistance having no legal basis and irregular in nature shall constitute grounds for the issuance of notice of disallowance,” the audit team said.

The DHSUD management told the audit team that the grocery allowance received by the employees would be treated as a “Service Recognition Incentive” and they would no longer receive additional incentives.

The agency however requested that COS personnel who “bravely and selflessly” reported for work at the height of lockdowns be excused from returning the P10,000 allowance they received.

The consultants and National Capital Region office employees, however, have committed to refund their allowances. A total of P706,575 has been refunded as of May 31, 2022.

The audit team also said the P3.09 million disbursements for meals and snacks of COS personnel constitute additional bonuses or allowances and are also not in accordance with the provisions of the GPPB.

But the DHSUD management insisted that the disbursements were made in “good faith” and based on the prior practice of the Office of Civil Defense.

The audit report on the DHSUD can be downloaded from the COA website:

A copy of the report was received by the office of former secretary Eduardo del Rosario on June 29, 2022.

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