PCSO execs broke bonus rule, says COA

Members of the board of the Philippine Charity Sweepstakes Office (PCSO) received P4.53 million more in allowances, bonuses and other incentives than they should have in 2010, according to the Commission on Audit (COA).

The COA said that from Sept. 8 to Dec. 31, 2010, PCSO directors continued to receive various monetary perks—including a P3,000 allowance for every day that they attended lotto draws—contrary to Executive Order No. 7 issued by President Benigno Aquino, which suspended such allowances and incentives until new policies on compensation had been issued.

The findings were contained in the COA’s 2010 report on the PCSO, which was released last week.

In its recommendation, the audit agency said the PCSO should seek ex post facto (retroactive) approval from Mr. Aquino for the P4.53 million in excess allowances and benefits the board received, or it would disallow them.

The charity agency, in response, told the COA it was in the process of securing presidential approval.

Mr. Aquino issued EO 7 after slamming in his 2010 State of the Nation Address the many allowances that officers of government corporations and financial institutions were receiving. His speech led to a congressional scrutiny of the perks enjoyed by officials who are exempt from the salary standardization law.

According to the COA, the extra the PCSO board should not have received were a rice allowance, hazard pay, staple food allowance, anniversary bonus, grocery allowance, medical allowance, Sweepstakes Draw allowance, cash gifts, representation and transportation allowance, cost of living allowance and a three-month Christmas bonus.

The board members also received P3,000 a day as management observers of lotto draws, totaling P720,000 from September to December 2010, it said.

It also found that board members received their January 2011 representation and transportation allowance and cost of living allowance in December 2010 in violation of EO 19 which extended the suspension of allowances, bonuses and other incentives to officers of government corporations. Leila B. Salaverria