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The Supreme Court has affirmed the notice of disallowances issued by the Commission on Audit against the payment by the Philippine Health Insurance Corporation of P83.06 million for educational assistance allowances and birthday gifts to its officials and employees in 2014.
Also, COA ruled that even if PhilHealth was expressly allowed by its charter to have its own position and compensation plans, it would still be required to report the same to the President through the Department of Budget and Management . It also ruled that “the approving/certifying officers cannot be deemed in good faith, inasmuch as the rules and regulations requiring the prior approval of the Office of the President and the DBM were already existing prior to the grant and payment of the subject benefits and allowances.
On the liability, PhilHealth invoked good faith on the part of the approving officers and employees who received the disallowed benefits. The SC cited its several decisions which had rejected PhilHealth’s fiscal autonomy as justification for the payment of allowances and benefits.
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