Rowegie Abanto

Article (news)

Kaxandra Salonga

ABS-CBN News

<div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/17677626849831759313761751175567923524920180219-commission-on-audit-jc-4530.webp" style="width:960px" class="fr-fic fr-dib" width="960"/>Commission on Audit in Quezon City. Jonathan Cellona, ABS-CBN News/File </div>MANILA — The Commission on Audit (COA) has upheld a 2012 decision disallowing the P97.65 million excess separation pay granted to 79 former Philippine National Construction Corp. (PNCC) rank-and-file employees.In a decision released this month, the commission en banc ruled that the benefits equivalent to 250 percent of the monthly basic salary of each retrenched employee for every year of service were “excessive, extravagant, injudicious and unconscionable.”State auditors noted that PNCC, a government-acquired asset under the Department of Trade and Industry, incurred &quot;substantial losses&quot; between 2006 and 2010, making the high payouts “unreasonable and contradictory to sound management practice.”&quot;One cannot squeeze blood out of a dry stone; nor water out of parched land. To require the Management to continue being generous when it is no longer in a position to do so would certainly be unconscionable,” the decision read.It added that the benefits exceeded the one-month pay per year of service allowed under Article 283 of the Labor Code.<div><a href="https://www.abs-cbn.com/news/nation/2026/1/5/coa-flags-ched-s-free-higher-education-program-for-overpayment-to-local-colleges-1721">RELATED: COA flags CHED’s Free Higher Education program for P295-M overpayment to local colleges</a></div>The audit body dismissed PNCC’s argument that it was a private corporation exempt from state audit jurisdiction. It noted that the Supreme Court had affirmed its authority over PNCC and said treating the company as autonomous would make it a “lost command&quot; in the Executive Branch.&quot;The PNCC is not just like any other private corporation precisely because it is not a private corporation but indisputably a government-owned corporation,&quot; it read.<div><a href="https://www.abs-cbn.com/news/nation/2026/1/5/coa-discovers-ghost-ineligible-students-in-deped-shs-voucher-program-1337">COA discovers &#x27;ghost,&#x27; ineligible students in DepEd SHS voucher program</a></div>The decision held liable the Board of Directors that granted the separation pay, the payees and the officers who certified the payments for the disallowed amount.Meanwhile, the commission lifted the disallowance on P1.38 million in separation payments to 14 rank-and-file employees, noting their benefits were protected under a valid Collective Bargaining Agreement (CBA).However, state auditors said the remaining 65 employees were only entitled to the minimum benefits required by law.

The Commission on Audit upheld a 2012 decision disallowing the P97.65 million excess separation pay granted to 79 former Philippine National Construction Corporation rank-and-file employees.

The Commission on Audit upheld a 2012 decision disallowing the P97.65 million excess separation pay granted to 79 former Philippine National Construction Corporation rank-and-file employees.

COA: 79 ex-PNCC employees to return P97.65M excess separation pay

News

Entertainment

Lifestyle

Sports

Metro.Style

More

Traffic

Manila

Horoscope

Nation

COA: 79 ex-PNCC employees to return P97.65M excess separation pay

Kaxandra Salonga,

ABS-CBN News

Published Jan 07, 2026 01:19 PM PHT

Read More:

COA

PNCC

Separation Pay

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.