FOR ILLEGAL FUND TRANSFERS

THE Commission on Audit (COA) has confirmed the irregularities committed by the Lim administration since 2010 and recommended the filing of charges against those who were responsible.

In a memorandum addressed to Mayor Belen Fernandez, copy furnished City Accountant Teresita Manaois, State Auditor Virgilio Quinto specifically cited the illegal use of public money under the current appropriations to pay for obligations incurred the previous year.

Quinto said past and present officials and employees of Dagupan City could be held accountable for the series of illegal transfer of funds which were tantamount to malversation and has recommended the filing of charges against them.

He cited the electricity expenses for 2012 in the amount of P17.3 million that were charged by the Dagupan City government against appropriation for 2013.

Quinto said it was an illegal use of public funds or technical malversation which is punishable under Revised Penal Code of the Philippines and Section 350 of the Local Government Code.

Section 350 of the Local Government Code states: “All lawful expenditures and obligations incurred during a fiscal year shall be taken up in the accounts of that year”.

At the same time, Section 305 (a) of the same Code states: “. . .  no money shall be paid out of the local treasury except in pursuance of an appropriation ordinance or law.”

Quinto also cited the fact that actual electricity expense for the year 2012 reached P41. 9 million, exceeding the budget of P35.7 million by P6.2 million.

Since the prior year’s expenses were not recorded in the books as Accounts Payable as of December 31, 2012, hence it was evident that these were charged to 2013 appropriations.

He pointed out that the prior year’s obligations should not have been charged against appropriations of the current year unless a supplemental budget was enacted for that purpose.

In this case, however, the same should have been recorded as expense during the previous year for fair presentation of income and expenses of a particular year.

At a committee hearing of the city council six months ago, city hall officials of the Lim administration admitted that the fund transfers have long been an accepted practice in the city.

TWO PREVIOUS YEARS

The same malpractice was applied by the past administration of former Mayor Benjamin Lim not only in 2013 but also in 2011 and 2012, not just for electric bills but also for other payables.

The city budget for 2013 was practically all used by the time Fernandez took over as mayor in July.

Quinto pointed out that under Article 220 of the Revised Penal Code, any public official who shall apply any public fund or property under his administration to any public use other than for which such fund or property were appropriated by law or ordinance shall suffer the penalty of prison correctional in its minimum period or a fine ranging from one-half to the total of the sum misapplied.

However, if by reason of such misapplication, any damage or embarrassment shall have resulted in the public service, on either case, the offender shall also suffer the temporary special disqualification.

COA lists irregularities in fund disbursement

STATE Auditor IV Virgilio C. Quinto, in an audit observation memorandum sent to Mayor Belen T. Fernandez for the period January to June 2013, listed several irregularities in the disbursement of the city’s funds under the previous administration of former Mayor Benjamin Lim.

• Salaries of emergency workers from September 2012 to February 2013 amounting to P695,878.49 were charged to the Local Development Fund (LDF)when these should be charged to the Maintenance and Other Operating Expenses (MOOE) of the General Fund. Various supplies and materials, representation expenses, purchase of motor vehicles, gasoline expenses, reimbursement of other expenditures and payment of labor service amounting to P2,686,586.84 were also charged to the LDF, when these are not allowed by law.
•  “Claims for gasoline, oil and lubricants were paid without the necessary supporting documents.
• Disbursement vouchers, official receipts, report of disbursements, and financial reports were not submitted within the prescribed period.
• Accountable forms of the city were procured from one private enterprise contrary to law.
• Authorities to travel were granted to consultants whose purposes of travel were not related to the nature of their contracted assignments and this could have been performed by either the City Mayor or any city official. Job order personnel who are not government employees were allowed to travel and participate in out-of-town seminars, trainings and workshops.
• Some city officials and employees claimed registration fees in excess of P1,200 and charged membership and similar fees for personal and individual membership in private organizations.
• Charges arising from change in flight schedule and excess baggage were charged against government funds. (Actual expenses are allowed under E.O. 298, such authority is granted to top senior management positions only.)

Part of the five percent Calamity Fund amounting to P201,001.54 was used for general expenditures of the city. (CIO)

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