NHA hired lawyers on a contract basis without getting the necessary written approvals from the Office of the Government Corporate Counsel and written concurrence from the Commission on Audit, making the payments irregular. These lawyers also performed supervisory work, which is not allowed for contract workers.

Why It Matters

Recommended Actions

• Submit to природ the Audit Team the written approval of the OGCC for the Chief Corporate Attorney, Attorney IV and Attorney III hired as COS lawyers from January to August 2024
• And Subsequently, comply with COA Circular No. 2021-003 and COA-DBM JC No. 2, s. 2020, prior to hiring COS lawyers.

Original Audit Finding Excerpt

"Section 6. Rationalization of Provident Fund. The CPCS rates on the contributions to the Provident Fund shall apply to all GOCCs, subject to rationalization measures outlined in the CPCS. Item VIII of CPCS for the GOCCs covered by RA No. 10149, provides: Item VIII. Provident Fund. – The Provident Fund (PF) of all GOCCs shall be in accordance with the following: The conditions on GOCCs with existing PF shall also be in accordance with the following rationalization measures: GOCCs with current PF employer’s share that is lower than the maximum of 10% shall have to request for approval from the President of the Philippines should they intend to increase such employer’s share. GOCCs with current PF employer’s share that is higher than the maximum of 10% shall be limited to up to the allowable maximum rate. The GOCCs may choose to liquidate their existing PF and pay out its member employees if they are not amendable to the new PF rates. Those GOCCs that intend to set up a PF shall"

Source Document