Measure allowing Cebu City Hall workers to return disallowed bonuses in tranches pushed

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CEBU City Hall employees who may be ordered to return disallowed bonuses could soon be allowed to do so through staggered salary deductions, under a proposed ordinance now pending before the City Council.

The measure, introduced during the council’s latest session and referred to the committee on laws, seeks to establish a formal mechanism for recovering monetary benefits later disallowed by the Commission on Audit (COA).

The proposal comes as Mayor Nestor Archival confirmed that no Charter Day bonus will be granted this year.

He cited past audit findings and the risk of employees being required to refund previously received incentives.

The ordinance, titled “An Ordinance Establishing a Mechanism for the Recovery, Through Installment Salary Deductions, of Disallowed Bonuses, Allowances, or Financial Benefits Granted to City Government Personnel Pursuant to a Commission on Audit Disallowance,” aims to cushion the impact of refund orders.

The ordinance covers all bonuses, allowances, financial assistance, or similar monetary benefits granted to Cebu City government officials and employees that later become subject to a final and executory Notice of Disallowance from COA requiring refund.

Under the proposal, recovery may be made through salary deductions on an installment basis not exceeding 12 months.

It provides that monthly deductions must be reasonable and should not reduce an employee’s take-home pay below the minimum allowed under existing laws, Civil Service rules, and COA regulations.

Affected personnel must also be formally notified in writing of the amount to be refunded and the schedule of deductions.

Salary deductions may only be implemented after the Notice of Disallowance becomes final and executory, the employee is accorded due notice, and no legal prohibition or court order prevents recovery.

The ordinance further states that approving, certifying, or authorizing officials are not exempt from liability under COA rules, civil service laws, or anti-graft statutes, where applicable.

If approved, the City Treasurer’s Office, City Accounting Office, Human Resource Management Office, and City Legal Office will jointly craft implementing guidelines and monitor compliance with COA directives.

The proposed recovery mechanism follows heightened scrutiny over employee incentives, including the annual Charter Day bonus.

On Tuesday, Archival officially confirmed that city government employees will not receive a Charter Day bonus this year.

“Wala lage tay Charter Day bonus. Kinahanglan mo makasabot,” he said after the 89th Charter Day rites at Plaza Sugbo.

Archival explained that bonuses granted in the past two years were denied by state auditors and may still be subject to repayment.

“Last two years gi-deny. Pabayron tanan empleyado sa ilang nadawat. Karon wala gyud ta. Lisod kaayo akong pugson aron ingnon nga nakahatag ta, nga naa tay savings bisan wala. Ang mga tawo nga gitagaan ipabalik man gihapon, so what’s the use. Mao rana atong punto,” he said.

Earlier, Archival had described the bonus as “unlikely,” warning that granting incentives despite insufficient savings could trigger a Notice of Suspension or Notice of Disallowance from COA.

Such a finding could require recipients to refund the amount and expose approving officials to administrative liability.

Recent audit reports showed the city incurred a P91-million deficit from January to December 2025.(TGP)