Plunder of PNCC gratuity fund (2)
TRUE, the Philippine Accounting Standards (PAS) No. 19 required the establishment of Employee-Defined Benefits Plan.
But in complying with such directive, Philippine National Construction Corp. Management should have initially made a careful valuation, keeping in mind the dire financial straits the Agency was traversing at that time.
In fact, that huge 250% rate, opined the COA, was INSENSITIVE to the precarious financial position of PNCC which was steadily incurring losses, especially from 2003 and up until 2006!
But we a’int seen the devil there, yet’, if we were to further lip-read the COA audit team members. The real ‘Pacman Blow’ there that sent the beleaguered PNCC careening to the ground is that The Board ALLOWED the indicated separation/retrenchment benefit to be available for CASH ADVANCE by any qualified beneficiary.
This practice, the COA enthused, has NO legal basis and violates COA Circular No. 97-002 dated February 10, 1997.
The COA audit findings further reveal that as of December 31, 2010, 101 PNCC Central Office officers and employees and 22 employees of its Toll Management Division had an aggregate P179,043,950.03 CASH AD-VANCE and P23,265,000 res-pectively, charged against their aforesaid retirement/resignation gratuity. As at audit, the whole ‘cash-advanced’ amount stood at P202,308,950.03, which COA re-commended to be restituted to PNCC by scrupulous beneficiaries!
To effect such contumacious and malicious bleeding of the Agency’s retirement/gratuity funds, members of This Board cleverly crafted ‘justificatory’ resolutions, including that that established, on paper, a separate board of directors to attend to the disposition of, and/or any action anent, the PNCC Retirement Trust Fund, “to enable to appropriate for themselves millions of pesos representing retrenchment pay,” in the own, if strong, language of the COA auditors!
We shall scrutinize these ‘validating’ resolutions in subsequent series.
Meanwhile, and per the indicated COA audit, the following PNCC Board Members, Executives, the Corporate Secretary and its Staff individually RECEIVED huge amounts, charged against their respective retirement/gratuity benefits, to wit. (To be continued)