THE Commission on Audit (CoA) has urged the Civil Aviation Authority of the Philippines (CAAP) to recover P500 million invested with the United Coconut Planter’s Life Assurance Corp. (Cocolife).
Based on CoA’s audit report on CAAP for 2018 and 2017, the aviation agency placed the amount in a Variable Universal Life Insurance (Zenith Plan) with Cocolife on Dec. 14, 2018.
The audit report said the transaction was made without the approval of the CAAP Board of Directors. But CAAP claimed that it was duly approved by the Board.
Based on its investigation, the CoA said no such approval was recorded in the Minutes of the Board meeting in June 2018. It turned out that the proposal was presented to the Board in December.
The report showed that the transaction did not go through a review or study.
It added that since CAAP “invested in a variable universal life insurance, it should have requested for a rider to include disability benefits in case the insured gets incapacitated.”
CoA recommended CAAP to “[r]ecover the full amount of P500 million paid to Cocolife” and invest in a government facility to ensure higher returns with lower risks.