City officials accountable for technical malversation
AUDITOR’S RECOMMENDATION
PAST and present officials of Dagupan could go to jail for allowing current appropriations to pay for the previous year’s obligations, a practice that became standard under the administration of former Mayor Benjamin Lim.
City Auditor Virgilio Quinto, in an Audit Observation Memorandum, recommended the filing of administrative and criminal cases against the persons involved in such a transaction, citing specifically the settlement of the city’s electric bills, which he pointed out is equivalent to illegal use of public funds or technical malversation of funds.
If proven guilty, penalty could be imprisonment or a fine equivalent to half of the total amount of public fund misapplied.
An extensive audit of the city’s finances revealed that the July to December 2012 electricity expenses that amounted to P17.3 million were charged against the 2013 appropriation which did not contain a provision for the payment of the prior year’s obligation.
Several other accounts were similarly covered, which left the city coffer practically empty by the time Mayor Belen Fernandez assumed office in July this year after winning in the May elections.
The same practice was applied by the Lim administration in 2011 and 2012.
Section 350 of the Local Government Code of 1991 provides: “All lawful expenditures and obligations incurred during a fiscal year shall bed taken up in the account of that year.”
Section 305 (a) of the same code also states: “No money shall be paid out of the local treasury except in pursuance to appropriations ordinance or law”.
The COA noted that the aforementioned prior year’s expenses were not entered as Accounts Payable as of December 31, 2012 hence, these were charged to 2013 appropriations.
Quinto stressed that a prior year’s obligations should not be charged against appropriations of the current year unless a supplemental budget was enacted for that purpose, adding that in the latter case, the same should have been recorded as expenses during the previous year for fair presentation of income and expenses of a particular year.
Councilor Maybelyn Fernandez earlier pointed out this provision to his colleagues in the Sangguniang Panlungsod but this was downplayed by the SP majority which was then led by Councilor Brian Lim, now vice mayor, son of the former mayor.
Likely to be affected by Quinto’s recommendation are City Treasurer Romelita Alcantara, City Accountant Teresita Manaois, and City Budget Officer Virgilio Tangco. Tangco has retired.
The inclusion of City Administrator Vlad Mata may be added for directing the transaction and former city auditor Ofelia Celi for reportedly failing to report the anomaly. Celi has retired.
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