Iloilo City Hall mulls options on P46M disallowance; Babawiin kung talagang mali!

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While it is planning to appeal the disallowance of P46 million in bonuses or Productivity Enhancement Incentives given to its employees in 2009, the Iloilo City government is also mulling options on how to comply with the order.

City Mayor Jose Espinosa III said he wants an assurance the legal measures they will use in appealing to the Commission on Audit will not be futile.

“Before we go to court, we will ascertain first if there is hope; if none, then, it is useless to go to court,” Espinosa said (

Espinosa said that if the COA’s decision is final, City Hall will have no choice but to comply with the order.

The mayor said he will look into a possible refund scheme if City Hall complies with the COA order.

“We can return it, or it can be deducted from retirement benefits. It can also be through salary deduction,” he said.

But he admitted he is not sure for now on how the refund will be done by those who are retired or are no longer connected with the city government.

“When it happened, there are no clear-cut guidelines yet on the release of PEIs,” he said.

Espinosa also pointd out Iloilo City is not the only local government unit with disallowed expenditures.

The Department of Budget and Management’s Budget Circular No. 2009-5 issued guidelines on Productivity Enhancement Incentive for Fiscal Year 2009.

Under the circular, LGU personnel may be granted PEI of up to P10,000 by their respective councilors, depending on the LGUs’ financial capability.