Dagupan ails from P105-M in unliquidated funds
2013 COA REPORT
A TOTAL of P105.2 million in public funds extended by the Dagupan City government from 2010 to 2013 to barangays, non-government organizations (NGOs), People’s Organizations (POs), and individuals, including committees for city fiestas and Bangus Festivals from 2010 to 2013 remain unliquidated as of Dec. 31, 2013, according to the Commission on Audit (COA).
The latest audit report submitted by City Auditor Virgilio Quinto to Mayor Belen Fernandez, a copy of which was obtained by THE PUNCH, states that “the city failed to adopt an effective monitoring scheme on the submission of liquidation reports on financial assistance” under the administration of former Mayor Benjamin S. Lim.
The various fund assistance have been outstanding in the books for three months to three years in violation of COA Circular No. 2007-001 dated October 25, 2007.
COA recommended to the current city administration to send formal letters to the NGOs/POs requesting them to submit liquidation reports to avoid suspension/disallowances and or being charged in court.
The COA report also advised the city government to stop the practice of granting financial assistance until the previous once have been settled.
In reaction, Fernandez said she is forming an ad hoc committee with members from the private sector, specifically lawyers, to study the recommendations and other observations submitted in the COA report.
The mayor also stressed that under her administration which started in July last year, the practice of extending financial assistance to NGOs and POs, including those for city fiestas and Bangus Festival have been discontinued.
FIESTA FUNDS
COA’s report also show that the P2 million released for the Dagupan Fiesta executive committee on Dec. 29. 2011 has yet to be liquidated. The hermano mayor of the 2011 fiesta was Councilor Guilllermo Vallejos.
The Gilon-gilon Foundation, formed to handle the Bangus Festival in 2011, received two checks each amounting to P1,223,385.906 and P1,776,113.04, both dated January 14, 2001, which were not liquidated by the recipients. The executive committee was co-chaired by Alex Siapno and Maximo Alexis Tan. Councilor Redford Erfe-Mejia was the chairman of the ‘Kalutan’ activity.
COA records also show that the Dagupan City Fiesta of 2011 received the most financial assistance compared to all fiestas and festivals in Dagupan with P2 million and P3 million, both on December 16, 2011; another P2 million on December 22, 2011; and another P498,000 on December 31, 2011.
On the other hand, the Dagupan Bangus Festival 2012 executive committee, led by Councilor (now Vice Mayor) Brian Lim, was able to liquidate the P3 million extended to it on March 21, 2012 but was given another P1.5 million on April 22, 2012 which it failed to liquidate.
These amounts have yet to be liquidated.
The fund assistance extended to the Dagupan Fiesta 2012, chaired by Councilor Redford Erfe-Mejia, totalled P2.8 million remained unlliquidated. The funds were released separately to then City Budget Officer Virgil Tangco, Assistance City Treasurer Alex Hortaleza and Marivic Melecio. COA, however, will still validate the accounting reports since all are reportedly bonded as accountable officers.
The Bangus Festival 2013, chaired by then Councilor Alvin Coquia, (co-chaired by Marianne Ong) has an unliquidated P3 million, according to the COA report.
However, City Accountant Teresita Manaois told the PUNCH last March 10 that while a liquidation report for the P3 million financial assistance although yet to be acknowledged by the COA.
POWER BILLS
At the same time, the COA report reiterated that an illegal use of public funds or technical malversation of funds was committed when the electricity expenses in 2012 in the amount of P17.3 million was charged by the past city administration against the 2013 appropriation.
COA recommended that the city government must ensure that cash is available before an obligation is incurred, noting that technical malversation is punishable under the Revised Penal Code of the Philippines.
CASH GIFTS
Quinto also noted that the cash gifts for the year 2012 amounting to P3.3 million granted to technical consultants, job order employees and the like was in violation of Department of Budget and Management (DBM) Circular 2010-01 dated April 28, 2010 and Section 3-1 of COA Circular 2012-003 dated October 29, 2012.
Section 4.0 of the DBM Circular 2010-01 which provides the rules and regulations on the grant of year-end bonus and cash gift for FY 2010 and years thereafter states exclusions to such benefitsd to wit “Those hired without employer-employee relationships and paid from non-Personal Services appropriations budget x x x are excluded from the coverage.”
The incentives granted were drawn from the Maintenance and Other Operating Expenses (MOOE) of the Genertal Fund.
The COA report recommended a refund of the amount but the employees granted these illegal financial benefits are no longer working in the city government.—LVM
Share your Comments or Reactions
Powered by Facebook Comments
