Pag-IBIG execs bought 21 cars sans Palace OK
THE officials of the Home Development Mutual Fund (HDMF or Pag-IBIG Fund) bought 21 cars for themselves last year without getting approval from the Office of the President, the Commission on Audit said.
In its 2020 audit report, the total cost of these cars is P36.355 million. According to COA, the prior clearance was
made mandatory under Presidential Decree No. 1597, OP Memorandum Order No. 20 s. 2001, and OP Executive Order No. 7 s. 2010.
“Sections 5 and 6 of PD 1597 dictates that grant of fringe benefits by government-owned or controlled corporations must first be approved by the President,” the COA noted.
“Section 1 of Memo Order No. 20 suspended the grant of any kind of extra compensation or benefits for GOCCs officials in the senior level positions including members of the Board of Directors or Trustees but allowed exemptions subject to prior clearance with the OP,” it added.
On the other hand, EO No. 7 s. 2010 imposed a moratorium in salary increases, incentives, and benefits in all government agencies unless “specifically authorized by the President.”
In response, the Pag-IBIG Fund management claimed that since the transaction did not involve an increase in benefits, it did not require the imprimatur of President Rodrigo Duterte. It added that the purchase of all 21 cars was made under the 2015 Car Plan of HDMF and that the benefit has been carried over from 1983 when this was first approved by the Board of Trustees.
However, the COA insisted that the transaction was covered by Malacañang issuances hence the Pag-IBIG officials must secure the approval of OP even if only after the fact.
