No Charter Day bonus for Cebu City workers?

Local

CEBU City Hall is weighing the possible cancellation of this year’s Charter Day bonus after audit findings on previous payouts and a reported deficit, Mayor Nestor Archival said Monday, Feb. 16.

Archival disclosed in a press conference that bonus releases in 2023 and 2024 were flagged by state auditors, raising the risk that employees may be required to return the amounts they received if a Notice of Disallowance is issued.

“Sa 2023, nanghatag ta og bonus but naa tay nadawat nga Audit Observation Memo… ang sunod ana is Notice of Suspension, unya muabot na ang Disallowance,” Archival said.

He explained that once a Notice of Disallowance is issued, employees who received the incentive could be ordered to refund the amount.

“Meaning to say, if muabot na ang Notice of Disallowance, tanan empleyado iyang ipauli ang amount nga nadawat nga bonus,” he said.

For 2024, the city also received an Audit Observation Memo (AOM), which may likewise be followed by a suspension and eventual disallowance if deficiencies are not addressed.

“Pag-abot ani, ang 2024 employees nga nakadawat sa bonus, ibalik nila ang amount,” Archival said, adding that officials who signed off on the release could face administrative consequences.

Compounding the issue, Archival said the city incurred a P91-million deficit based on the audit report covering January to December 2025.

“So sa pagkakaron… naa tay nadawat nga deficit nga P91 million,” he said. “If we cannot have savings, it’s difficult to have a bonus. If we push for it then we will expect nga muabot ang AOM, Notice of Suspension and Disallowance, and then ibalik gihapon ang kwarta.”

Asked whether employees would receive any Charter Day bonus at this time, Archival replied: “Yes, sa pagkakaron,” indicating that no amount can be released pending the final audit report.

He said he is awaiting the final report before issuing a definitive decision.

“Kinahanglan pa gyud ko og final report. Then I will make a final say nga walay bonus karon na Charter Day,” he said, noting that earlier he had intended to grant an incentive if funds were available.

As an alternative, Archival said a committee proposed granting additional leave credits instead of a cash bonus. He said he may issue a memorandum granting up to 10 days of leave credits, subject to final review.

“If the final report will be given today or tomorrow, then we will decide from that,” he added.

In 2023, Cebu City Hall employees received a P15,000 Charter Day bonus approved by the City Council for around 5,000 regular, casual, and job order workers despite tight budget conditions.

The following year, the bonus increased to P25,000 for regular and casual employees, following council adjustments.

For 2025, the City Council approved a record P35,000 bonus per regular and casual worker, covering approximately 1,300 regular and 2,900 casual employees, up from an initial P25,000 proposal. The payout was delayed until after clearance from the Commission on Elections (Comelec) due to the election spending ban.

However, the Commission on Audit (COA) earlier flagged the release of P71.698 million in Charter Service Incentives in 2023, citing lack of documentation and requiring the submission of justifications and supporting papers. The notice warned that failure to comply could result in a disallowance.

Archival reiterated that the administration intends to comply fully with audit rules.

“We want to do this the right way,” he said.

February 24 marks Cebu City’s Charter Day, commemorating its establishment as a chartered city in 1937 under Commonwealth Act No. 58.

The date is observed as a special non-working holiday under Republic Act 7287, traditionally marked by wreath-laying ceremonies, religious services, and cultural events.(TGP)