THE Commission on Audit (CoA) flagged a Civil Aviation Authority of the Philippines (CAAP) insurance investment saying it was done without approval of the Board members and without adequate criteria for the selection 10 insured officers.
Although the CAAP stressed that the investment — P500-million single-pay variable life insurance with the United Coconut Planter’s Life Assurance Corp. (COCOLIFE) — was approved by the board, the auditing agency said that “there is no duly signed Board Resolution approving the investment in single-pay variable life insurance, being a new mode of investment.”
COA added that the Board did not take an action on the investment based on the minutes of the meeting.
The auditors also noted that there were issues with the officers who were insured.
CAAP suggested that the officials to be considered as key men for the insurance should come from the ranks of Department Manager or above.
“It is also worthy to note that two of the 10 officers insured are political appointees and they generally serve at the pleasure of the President of the Philippines who is the appointing authority or are co-terminus with the President who has only three years left in office as of report date,” said CoA.
Hence, CoA recommended that CAAP should “recover the full amount of P500 million paid to COCOLIFE.” — Vince Angelo C. Ferreras