MANILA — The Commission on Audit proper has ordered former Civil Aviation Authority of the Philippines officials to return to government coffers a total of P192.188 million "achievement bonuses" given to officers and employees in 2014.

In the decision dated January 24, 2022 but was made public recently, the commission affirmed the notices of disallowance issued to various CAAP offices as it denied the petition of former officials led by retired Lt. Gen. William Hotchkiss III, Concordia Pagkaliwangan, Jocelyn Ching, Raul Eusebio, Rosario Nalungon and Fe Evangelista.

The former officials assailed the decision of the COA Corporate Government Sector Cluster Division holding them liable for the bonuses.

“The authorizing, approving and certifying officers remain solidarily liable for the total amount of disallowance which shall be reduced by the refunds made by the payees who are liable to return the amounts they actually received,” the COA proper said in the decision signed by then COA Chairperson Michael Aguinaldo and Commissioner Roland Pondoc.

The commission noted that the petition for review was filed beyond the reglementary period of 6 months to 180 days but it was set aside and the issue was resolved based on the merits of the case.

The COA stated that the granting of achievement bonuses was in violation of various laws and government regulations such as Republic Act No. 10149 or the Government-Owned and/or Controlled Corporation Governance Act of 2011, Executive Order No. 07 series of 2010, Administrative Order No. 103 series of 2001 and COA Circular No. 2013-003.

The decision also stressed that the achievement bonuses were not included in the 2014 CAAP Corporate Operating Budget and were thus deemed an irregular expenditure.

Among the CAAP area centers that received the bonuses and the notices of disallowance were Pasay City; Laoag City; Tuguegarao City; Cauayan City; Plaridel, Bulacan; Puerto Princesa City; Legazpi City; Masbate City; Naga City; Virac, Catanduanes, Iloilo; Lapu-Lapu City; Tacloban City; Catarman, Northern Samar; Calbayog City; Zamboanga City, Pagadian City; Dipolog City, Jolo, Sulu; Laguindingan Airport, Misamis Oriental; Davao City; General Santos City; Allah Valley Airport, South Cotabato; Cotabato City; and Butuan City.

In their petition for review, Hotchkiss and the other officers appealed that the bonuses were granted pursuant to CAAP’s fiscal autonomy as provided for in its charter, Republic Act No. or the Civil Aviation Authority Act of 2008.

The budget used for the achievement bonuses was also validly sourced through their corporate budget savings realized from CAAP’s operations, according to the former officials.

The officials also invoked the “alter-ego” doctrine because the approval of the CAAP Board of Directors is an implied approval by the President.

The COA proper however emphasized that EO No. 7 stated that a moratorium on incentives has been imposed since 2010 unless “specifically authorized by the President”.

“Evidently, the imprimatur from the President is indispensable in any increase in salary or compensation of GOCCs that are not in accordance with the laws and applicable issuances,” the COA proper said.

The commission also instructed its audit team leader to evaluate the participation of the other members of the Board of Directors and officer of CAAP if they may also be included in the persons held solidarily liable, if necessary.

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