P105-M to barangays, NGOs/POs still unliquidated
DAGUPAN’S OWN “NAPOLES SCAM”
NO MORE of Dagupan’s public money is going to non-government organizations (NGOs) and People’s Organizations (PO).
Mayor Belen Fernandez has set her foot down on this following a report from the Commission on Audit (COA) that more than P105 million in funds transferred under the previous administration of former Mayor Benjamin Lim to such groups and other similar organizations as well as barangays remain unliquidated.
Fernandez has also called for further investigation as there are reports that some of these NGOs and POs are non-existent, similar to the ongoing case where Priority Development Assistance Fund (PDAF) of congressmen and senators were supposedly channeled to bogus groups.
“These funds had been outstanding in the books from three (3) months to three years in violation of Section 5.4 of COA Circular No. 2007-001 dated October 25, 2007,” reads the memorandum signed by State Auditor Virgilio Quinto and co-signed by State Auditor Virginia Mendoza.
The financial assistance totaled P24.1million in 2010; P52.3 million in 2011; P6.8 million in 2012.
For this year, the memorandum declares, “Verification of records showed that funds transferred to Non-Governmental Organizations/People’s Organizations for various projects amounting to P57.3 million from January 2010 to April 2013 were still unliquidated as of June 30, 2013…”
Section 5.4 of COA Circular No. 2007-001 provides that within 60 days after the completion of the project, the NGO/PO shall submit the Final Fund Utilization Report certified by its accountant and approved by its president/Chairman to the government organization, together with the inspection report and together with certificate of project completion issued by the GO authorized representatives, list of beneficiaries with their acceptance.
The COA noted that additional financial assistance were granted to the same NGOs/POs despite their unsettled balances.
Quinto urged the city government to send a formal letter to these NGOs/POs ordering them to submit the liquidation reports and put on hold any additional financial assistance unless the previous ones are settled.
The COA report, however, did not list the delinquent NGOs/Pos.
BARANGAYS
The COA also reported that more than P47.8 million worth of funds distributed to the barangays for various projects beginning 2011 remain unaccounted for.
The COA also noted that the city government has failed to adopt an effective monitoring system such that additional funds are given out to barangays which still have unsettled balances.
Included in the list of unliquidated financial assistance from January 1 to December 31, 2011 are those of the Liga ng mga Barangay, P1.5 million; Gilon-Gilon Foundation, P1.7 million; Gilon-Gilon Foundation, P1.2 million; Liga ng mga Barangay, P7.7 million; and CEGMPC c/o Eduardo Magno (for skills training), P114, 973.
The list of financial assistance and their beneficiaries for 2010, 2012 and 2013 were not available.
CASH GIFTS
Another matter raised by the COA in its memorandum is the handing out of year-end cash incentive or cash gift worth about P3.78 million to 748 technical consultants and “job orders” under the Lim administration.
Quinto pointed out that under the rules of the Department of Budget and Management, those hired without employer-employee relationships and paid from non-Personal Services appropriations or budgets are excluded from the coverage.
This category includes consultants and experts hired for a limited period to perform specific activities or services with expected outputs; laborers hired through job contracts (pakyaw) and those paid on piecework basis; student laborers and apprentices, and individuals or group of people whose services are engaged through job orders, contract of services, or other similarly situated.
Quinto said this is considered as irregular expenditures incurred without adhering to established rules, regulations, procedural guidelines, policies, principles or practices that have gained recognition in laws.
“The grant of cash gift to those hired without employer-employee relationship represents irregular expenditures which preclude the government from utilizing more funds for the needs of its constituents as well as for other priority projects,” explained Quinto.
DISASTER RISK MANAGEMENT FUND
Another anomaly cited by the COA is the use of the Local Disaster Risk Management Fund amounting to P201 million to pay telephone expenses, traveling expenses and cost of meals of the city government personnel.
Quinto said this is a violation of Sec. 21 of Republic Act 10121 or the Philippine Risk Reduction and Management Act of 2010.
Verification and post-audit of the transactions from January 1 to June 30, 2013 revealed that certain expenditures were charged to the Local Disaster Risk Management Fund, including P16,776 to Globe and Digitel for communication expenses; Candido Ubando, August Ubando and Ronaldo de Guzman, P35,662; and Ronaldo de Guzman/ Megatreats Deli for payment; and reimbursement of meals, P148, 563.
De Guzman is current executive director of the City Disaster Risk Reduction and Management Council
The COA also declared illegal the use of P2.5 million from the 20% development fund for representation expenses totalling P500,000 during the holding of the Dagupan’s Best Lechon, which was part of the Bangus Festival. (with CIO report)
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