SEC officials, employees ordered to return P92M in increased salaries, wages in 2012


Commission_on_Audit

The Commission on Audit (COA) has ordered the officials and employees of the Securities and Exchange Commission (SEC) to return the P92.74 million that was spent to increase their salaries and wages in 2012.

The COA denied the motion filed by then SEC Chairperson Teresita J. Herbosa and other officials to reconsider the June 14, 2016 decision which affirmed the notice of disallowance (ND) on the payment of the P92.74 in increased salaries and wages.

In its motion for reconsideration, SEC told COA that it had the authority to create its own compensation and position classification system based on Section 7.2 of the Securities Regulation Code.

SEC also told COA that its officials cannot be held solidarily liable to refund the disallowed amount because they acted in good faith.

However, the COA found no merit in their claim.

“As to the liability for the refund of the disallowed amount, the Supreme Court has ruled public officials who are directly responsible for, or participated in making the illegal expenditures, as well as those who actually received the amounts therefrom shall be liable for their reimbursement," the COA said.

It also junked the invocation of good faith on the part of the SEC officials.

"Atty. Herbosa and other SEC officials named liable under the ND shall remain solidarily liable therefore, while the employee-recipients are liable to refund the amounts they actually received," it added.

"Wherefore, premises considered, the Motions for Reconsideration of the SEC and Atty. Teresita J. Herbosa, former Chairperson, SEC, are hereby denied," the dispositive portion of the ruling stated.

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