COA flags Baguio gov’t over P4.43-B savings amid unpaid obligations

 Where did the time deposit interest go?

BAGUIO CITY -- The Commission on Audit (COA) has flagged the city government of Baguio for having P4.43 billion in time deposits and several high yield savings accounts (HYSA) amid unpaid obligations and unimplemented priority development projects.

In a 2023 audit report on Baguio, the COA said the funds, placed under HYSA/time deposit and approximately totaling P4.45 billion as of December 2023, were in excess by P3.7 billion or 537 percent of idle funds amounting to P695 million.

The audit breakdown showed that 17 of the HYSA/time deposit accounts were with the Land Bank of the Philippines and have a yearend balance of P3.32 billion.

Seven other accounts were with the Development Bank of the Philippines, with a total yearend balance of P1.11 billion.

Based on COA Circular Nos. 92-382 and 92-382-A, only idle funds of local government units (LGUs) can be placed in time deposits and HYSAs.

The audit body said a review of the city government’s financial statement showed Baguio has idle funds of only P695 million as of December 2023, which should have been placed under time deposit during the first quarter of 2024.

“Apparently, the fund placed under time deposits were obtained from funds intended for payment or settlement of current liabilities and to cover the budgeted regular and recurring operating expenses for calendar year 2024,” the COA said.

It said that such conditions resulted in the accumulation of liabilities to suppliers and contractors, unsettled obligations to officers and employees, and unremitted amounts in favor of other government agencies.

This, as City Treasurer Alex Cabarrubias said the COA audit observation memorandum (AOM) questioning the city's time deposits was an old issue that had been properly answered by the city,.

Cabarrubias said that on April 22, 2024, he had answered COA's 2023 audit report contained in COA AOM No. 2024-006 which informed of the city's "non-adherence" to COA Circular 92-382 dated July 3, 1992 by placing in time deposits and high yield savings account (HYSA) funds that are not considered as idle.

"In my reply, I already put forward our justification for our decision that we only had the best intentions for the city as the interest earned from that period of 2018 to 2023 were put to good use infused to projects and programs that are beneficial to our constituents," Cabarrubias said.

In his April 22, 2024 letter to Supervisor Auditor Atty. Nover Bate and Audit Team Leader Alicia Estibar, the city treasurer said he was aware of the COA Circular 92-382 provisions but with the huge amount under current accounts of the city, he was tempted to place amounts not considered as idle into time deposits taking advantage of the high interests offered.

"Having in mind the objective of the Circular, we set the longest period of the time deposits at 180 days or six months, way shorter than the average (time required for) the implementation of projects, the fund cover of which, is the bulk of the time deposits," Cabarrubias wrote the auditors.

The city treasurer also assured auditors that in availing the time deposits, they saw to it that "the City Government is financially stable and could satisfy its financial obligation on time."

"No payment of whatever kind has been denied or even delayed for non-availability of cash by reason of the time deposit placements."

Cabarrubias then promised to comply with the recommendations in the AOM but appealed to deposits be terminated only upon maturity.

As of now, only P1.13 billion out of the P4.43 billion remains in time deposit, according to him.

He also told the auditors that as a result of the placements, the city realized an estimated P323 million in interest income for the period 2018-2023.

Cabarrubias said the proceeds were infused in various city programs, projects and activities with amounts spread out in the city budget.

Cabarrubias said that to this date, the city has not yet received a reply or dissenting information from the COA on his letter. With reports from Elizabeth Marcelo and Aileen P. Refuerzo

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‘Disputes with media should be settled in court’/ Confidential funds

  
EDITORIAL

Public Attorney’s Office (PAO) Chief Persida Acosta on Tuesday urged that disputes with the media should be settled in court instead of through bloodshed.
    “Meron mga nasasagasaan ang ating mga kasama sa media na talaga namang may impluwensiya, may kapangyarihan, may kayamanan, at ang kanilang nagiging result ay ikli ng buhay ng ating mga kasama (There are media practitioners who clash with influential, powerful, or rich individuals, and this results in shortened lives),” Acosta told a media summit at Bayview Park Hotel in Manila.
    She said however that there are laws in place and effective legal processes for those who have grudges against journalists as well as public servants.
    “Bigyan natin ng pagkakataon ang rule of law and justice. Daanin sa proseso. At kaugnay nito, kailangan po ang mga pag-aaral po ng ating mga kasama sa media ng batas upang maiwasan ang galit at bangis ng mga nasasagasaan (Let’s give a chance to the rule of law and justice. Let’s go through the process. And with this, our media practitioners should also study the law to avoid the ire of those being imputed)” Acosta said.
    Among some of the common lawsuits filed against journalists are cyber-libel or libel under the revised penal code, she was quoted by the government-run Philippine News Agency.
        In a separate speech, Presidential Communications Office (PCO) Assistant Secretary Michel Andre Del Rosario said a “free and responsible press” in the country is a “cornerstone of any democracy.”
    “It is through the diligent and courageous work of our journalists, that we are kept informed, enlightened, and engaged in the affairs of our nation,” he said.
    The media summit organized by the Presidential Task Force on Media Security (PTFoMS), with the theme "Promoting a free and responsible press towards a safer media community" is part of the government’s efforts to address violence against journalists.
    “It is our solemn duty to address these issues head-on and ensure that those who seek to silence the press are brought to justice,” Del Rosario said.
    Senior media practitioners, lawyers, and legal experts discussed several topics during the event to educate participating journalists on the present condition of the country’s media landscape.
    The PTFoMS - through the PAO and the Puno and Puno Law Offices – also held a free legal aid clinic for journalists during the latter part of the event.
    PTFoMS executive director, Undersecretary Paul Gutierrez, said the summit is only the beginning of a series of events organized for media practitioners.
    He said succeeding legs of the event will be held in the Davao Region, Tagaytay City for the Southern Luzon leg, and in Subic for the Central Luzon leg. 

EDITORIAL
Confidential funds

One of the controversial issues now engulfing the country is confidential funds. This, after Vice President Sarah Duterte insisted on having such funds for the Education department which she heads which doesn’t involve national security.
    She wanted a P500 million confidential fund for the Office of the Vice President. Granted.
    She wanted a separate P150 million confidential fund for the Department of Education which she also heads. Pointedly questioned about it by Arlene Brosas (Gabriela), France Castro (ACT Teachers) and Raoul Manuel (Kabataan), she just said matter-of-factly that security and surveillance work – never before part of DepEd’s functions because why would the department need money for this when there is an acute classroom shortage that was not addressed during her father’s term? – was necessary to handle “specific issues and challenges.” Granted again.
    Taking cue from this, the Dept. of Information and Communications Technology (DICT) also requested a confidential fund worth P300 million worth of confidential and intelligence funds (CIF) for fiscal year 2024 to combat scammers, according to Sec. Ivan Uy said on Wednesday.
    In a Malacañang Press Briefing, Uy explained that the confidential fund is necessary to conduct intelligence and investigations to apprehend cyber criminals.
    Confidential funds pertain to costs associated with surveillance operations within non-military government organizations to assist the agency’s mission or functions.
    The DICT chief expressed concern over scammers using multiple tactics to evade being identified and apprehended.
    Uy said these criminals are well-funded, well-organized, and highly technical.
    Hence, he said that DICT needs to match them with the appropriate government capabilities.
 “Our hands are tied without the proper tools, and many of these tools and methods require confidential funds to be implemented,” Uy said.
    The DICT says that it is working with law enforcement agencies to crack down on cybercrime.
    However, Uy said that the confidential fund will allow the DICT to take a more proactive approach to combating these crimes.
     “We need to be able to gather intelligence and conduct investigations without being hampered by red tape,” Uy said. “The confidential fund will allow us to do that,” he added.
    Joint Circular No. 2015-01, issued on January 8, 2015, by the Commission on Audit and four other government entities, prescribes the guidelines for the utilization and audit of intelligence and confidential funds.
    According to records from the Department of Budget and Management (DBM), the combined allocation for confidential and intelligence funds for the upcoming year amounts to P10.142 billion.
    The DBM noted that this figure represents an increase of P120 million compared to the P10.02 billion allocated for the Confidential and Intelligence Funds (CIF) in 2023.
    It is now becoming a trend among government agencies and even local government units to haggle for confidential funds which they will use according to their whims without being accountable for it.
    There needs to be more stringent rules on use of taxpayers’ money like what those in government call confidential funds.

EDITORIAL

Changing abusive, inept corrupt barangay officials

The filing of certificates of candidacy for the barangay and Sangguniang Kabataan elections has lapsed. Now, the first BSKE since 2018 will be held and changing abusive, inept and corrupt barangay officials is now possible.
After multiple postponements that effectively extended the terms of village and youth council officials, the BSKE will finally push through in October.
    This was after the Supreme Court struck down the latest postponement, through Republic Act 11935, as a “grave violation of the Constitution” and “unduly arbitrary or oppressive of the electorates’ right of suffrage.”
    The gift of a term extension has been widely seen as either a reward or a way of wooing the support of officials at the smallest unit of government.
    The gift is typically granted by Congress and Malacañang shortly before or after general and midterm elections.
    As the Supreme Court pointed out, however, “the free and meaningful exercise of the right to vote, as protected and guaranteed by the Constitution, requires the holding of genuine periodic elections, which must be held at intervals which are not unduly long, and which ensure that the authority of government continues to be based on the free expression of the will of electors.”
    With the BSKE finally pushing through this year, voters should take the time to get to know the aspirants for posts that directly affect governance in their communities.
    People should remember how the incumbent officials performed during the Covid lockdowns, when several faced criminal and administrative complaints in connection with the distribution of various forms of pandemic ayuda or assistance.
    During the Duterte administration, several barangay captains were also indicted for drug-related offenses.
    Voters should also consider the performance of incumbent officials in making their communities business-friendly.     Barangays are empowered to collect certain types of fees for various enterprises and services including for the use of farm equipment. Enterprises from micro to large have complained about the immense amount of red tape and redundant fees imposed by barangays across the country. Even plain folks have been victimized by abusive barangay officials who wielded their power to harass.
    With the filing of COCs, voters can consider how aspirants conduct their campaigns. Those who violate election rules, starting with the display of campaign materials, cannot be expected to play fair and provide honest public service.
    Good governance must be promoted at the grassroots. After several postponements, voters now have a chance to make this possible by electing into office deserving candidates. 
 
 
 

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Katribu: Defund, dismantle NCIP for fund misuse, abuses

INDIGENOUS Peoples groups and advocates, led by Katribu Kalipunan ng Katutubong Mamamayan ng Pilipinas and Sandugo - Movement of Moro and Indigenous Peoples for Self-Determination, picketed the House of Representatives recently as 2024 national budget deliberations were ongoing.
    The groups protested against approval of the National Commission of Indigenous Peoples’ (NCIP) 2024 proposed budget and called for defunding of the Commission.
 “The National Commission on Indigenous Peoples deserves no budget allocation this 2024 and for the years to come. In its 26 years of existence, NCIP has been an instrument of disservice and rights violations among indigenous communities,” said Beverly Longid, national convenor of Katribu Kalipunan ng Katutubong Mamamayan ng Pilipinas.
    According to Longid, the NCIP has been repeatedly flagged for injudicious spending by the Commission on Audit (COA).
    The COA has questioned the NCIP’s spending of over P1million for a two-day NTF-ELCAC “Regional Action Planning Workshop'' in 2020. The COA also flagged the NCIP’s expenditure amounting to P4.815 million for similar activities in 2018 and 2019.
    “These kinds of expenses are gross misappropriation of funds supposedly for IP community development and promotion and protection of their rights,” Longid said.
    Meanwhile, Eufemia Cullamat, spokesperson of Sandugo - Movement of Moro and Indigenous Peoples for Self-Determination, lambasted both the NCIP and NTF-ELCAC’s roles on the government’s counter-insurgency program. Cullamat exposed how NCIP Chairperson Allen Capuyan still takes significant roles in the task force’s implementation of its IP-centric “whole-of-nation approach” as one of the Cabinet Officers for Regional Development and Security (CORDS) of the National Task Force to End Local Communist Armed Conflict for Region 13. 

“Kahit na hindi na executive director ng NTF-ELCAC si Capuyan, batid natin ang maraming kaso ng paglabag ng task force sa karapatang pantao. Kaya ang NCIP at mga opisyal nito ay may makabuluhang papel pa rin sa pagpapatupad ng tuloy-tuloy na atake ng NTF-ELCAC sa mga katutubo.”

The NCIP with its chair Allen Capuyan have also been subjected to investigation due to cases of corruption. These include the anomalous 7-million pesos worth of coffee table books and the commission’s solicitation of funds from mining companies. An administrative case was also filed against Capuyan and Commissioner Cayat at the Ombudsman for falsifying FPIC documents for the operations of National Cement Corporation/San Miguel Northern Cement Inc. (NCC/SMNCI) in Bag-o’s ancestral land in Pangasinan.

 “Taxpayers money should be used to improve the lives of the people and should never be used to hamper their rights, and worse, to prosecute and kill people. Hence, the NCIP and NTF-ELCAC should be defunded and dismantled, with its funds reallocated in genuine service of the Filipino people,” Longid said.

 

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Council to city gov’t offices: Submit list of unfinished projects

BAGUIO CITY – The City Council urged the City Buildings and Architecture Office (CBAO), City Engineering Office (CEO) and City Environment and Parks Management Office (CEPMO) to submit their respective reports on unimplemented projects within their jurisdiction for the last three years and to provide their recommendations to the local legislative body for appropriate enactment of measures.
    Under resolution 511, series of 2023, local legislators stated inclusion of unimplemented projects in the annual audit report of the local government signified their acknowledgement of challenges, delays or other factors that may have hindered the execution of certain projects.
    The council claimed said transparency will allow for a comprehensive assessment of the city’s performance, paving the way for informed decision-making and future planning.
    The body recognized that the CBAO, CEO and CEPMO are integral departments of the local government that are responsible for the planning and execution of various projects within the city.
    Monitoring and evaluation of implemented and unimplemented projects play a critical role in understanding the progress, challenges and opportunities within city development and management.
    One of the highlights of the annual audit report from the Commission on Audit (COA) in the Cordillera is the presentation of the implemented and unimplemented projects of the local government where it highlighted the city’s progress in executing its plans and initiatives.

The council said unimplemented projects underscored the body’s commitment to delivering essential services, improving infrastructure, and enhancing the quality of life for the residents where the said successful endeavors not only demonstrated effective governance but also provided tangible benefits to the community.

The COA-CAR audit findings disclosed the city government government has substantial unimplemented projects that casts doubt in the capability of the local government to be able to implement the said projects because of certain challenges that have cropped up during the execution stage.

Copies of the approved resolution will be transmitted to the concerned offices for their information, guidance, ready reference and further needed action. -- Dexter A. See

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Baguio barangay execs told: Inventory, turn- over records properties

By Gaby B. Keith

BAGUIO CITY – With the filing of Certificates of Candidacy (COCs) for barangay and Sangguniang Kabataan elections fast approaching, Dept. of the Interior and Local Government Baguio director Millicent Carino issued an advisory, July 4, 2023, to the Summer Capital’s punong barangays reminding them of proper inventory and turnover of properties.
    It includes turnover of financial records, documents and money accountabilities by all incumbent barangay and SK officials.
    “Since appointive officials who filed a COC will be considered ipso facto resigned from the office and must vacate the same at the start of the regular office hours of the day when the aspirant filed the COC, it is imperative that proper turnover be done prior to the filing of COC by the aspirant appointive official,” her advisory stated.
    It advises the aspiring officials to be guided by DILG Memorandum Circular No. 2023-047 for the required activities to be conducted by the Barangay Inventory Team (BIT).
    Submission of the accomplished Inventory and Turnover Form No. 1 to the City Mayor, through the City Accountant, copy furnished the local Commission on Audit (COA) and DILG Field Office is emphasized, as well as the submission of clearance from all accountabilities on or before August 22, 2023, the advisory stressed.
    The barangay and SK elections is slated on Oct. 30.

 

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Bontoc b’gay, SK execs warned: Turnover government properties

By Alpine L. Killa-Malwagay

BONTOC, Mountain Province - Incumbent barangay and Sangguniang Kabataan (SK) officials were  directed to conduct an inventory of government properties, financial records, documents, and money accountabilities under their custody in preparation for the Barangay and Sangguniang Kabataan Elections (BSKE) on October 30, 2023. 
    Municipal Local Government Operations Officer Lourdes Claire Peel of the Department of the Interior and Local Government (DILG) said that this is covered under DILG Memorandum Circular No. 2023-047. 
    She made this report during the Municipal Peace and Order Council (MPOC) meeting on August 16, 2023, in Barangay Samoki, Bontoc, Mountain Province. 
    She warned barangay and SK officials who fail to comply with the directive may be held liable for their action.
    Peel said the inventory would ensure that the properties of the barangay, supplies, and finances that were in actual possession or entrusted to the concerned barangay and SK officials including reports on damage, lost items, or repaired items were all accounted for before Nov. 30, 2023. This his is to ensure a smooth transition between outgoing and incoming barangay and SK officials. The term of the new barangay and SK officials will be effective noon of Nov. 30, 2023.
    It was stipulated in the memorandum circular that the Barangay Inventory Team (BIT), Sangguniang Kabataan Inventory Team (SKIT), and Municipal Assessment and Transition Team (MATT) shall be created by the Punong Barangay, SK Chairpersons, and Municipal Mayors, respectively. 
    Peel requested the officials to cooperate with the DILG regulations.

 

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'Baguio gov't addressing projects flagged by COA'

By Aileen P. Refuerzo

BAGUIO CITY -- The city government here is taking steps to address its long standing problem on unimplemented projects which became the subject of an audit observation memorandum by the Commission on Audit (COA) recently.
    City Administrator Bonifacio Dela Pena said they have pinpointed the cause of the problem for both the big and small projects identified for implementation and have identified steps to ensure the implementation of the projects as programmed.
    For small projects, the problem lies on the low costing of the projects identified which led to failure of bidding procedures.
Dela Pena said some of the projects identified costs from as low as P100,000 to P250,000 so that no contractors were willing to bid for them resulting in failure in bidding, not even when the city’s Bids and Awards Committee (BAC) resorted to negotiated bidding procedure.
    He said the city earlier tried to remedy this problem by clustering the projects but this did not work.
    To cure this, the city will attempt to consolidate these small projects and realign the amount to implement a big impact project instead.
    Dela Pena said the barangays have already agreed to this scheme and the BAC along with implementing offices City Buildings and Architecture Office, City Engineering Office and City Environment and Parks Management Office are now in the process of consolidating the unimplemented small projects.
    They will also review the costs of the small projects to make them viable.
    For high impact projects, he said there are those that can still be finished within the year but there are those that have been encountering delays in implementation.
    He said that to address this, the implementing offices have agreed with the city council to adjust the time of approval of the annual budget at an earlier date.
    This will facilitate the early bidding of these high impact projects and ensure earlier implementation.
    Dela Pena also assured that the budget allocated for all these projects is intact and was not squandered or misused.
     “The money is there.  We are just encountering some difficulties in implementing the projects but we assure you that all these funds will be used for projects they were meant for to benefit our constituents,” he said.

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COA flags Baguio gov’t for ‘misuse’ of funds

‘P25 million given to contractor as loan’ 

By Aldwin Quitasol

BAGUIO CITY -- The Commission on Audit or CoA has called out the City government here headed by Mayor Benjamin Magalong for “misusing funds” intended for a national project.
    An audit revealed the city government used P50 million in Department of Public Works and Highways funds to pay for the progress billing of its ongoing Youth Convergence Center and Sports Complex project instead of using it for the construction of the Multi-Purpose Building at the Athletic Bowl Oval at Burnham Park in this summer capital.
    The COA said this was in violation of the memorandum of agreement between the city government and the DPWH, which stipulated that the P50-million fund was to be used solely for the construction of the multi-purpose building.
    CoA said the city government’s actions “did not achieve the purpose of the project MoA.”
    Worse, the initial P25-million fund transfer released by the DPWH was disbursed to the contractor of a city government project as a loan, CoA added.
    The Baguio City government responded to the audit findings by saying that executing an amended MoA with the DPWH may have required complicated procedures.
    The LGU asked whether a certification from the bids and awards committee and the head of the procuring entity stating that the DPWH project had been “clustered” with the city government would be sufficient to resolve the audit issue.
CoA responded that “another legal document may be executed as long as it contains the explicit approval of the DPWH as the funding agency on the ‘clustering’ of the two subject projects.”
    The COA disclosed in recent finding the purpose of a downloaded amount from the government to fund construction of a multi-purpose building at the Baguio Athletic Bowl at Burnham Park here was not achieved. 
    “Funds released through SARO-BMB-A-22-0002808 was used for purposes other than that authorized therein," the COA noted.
    The statement was part of the COA annual audit report on the City of Baguio for the year that ended December 31, 2022. 
On Nov. 18, 2021, a project memorandum of agreement (MOA) was forged between the city government of Baguio and the DPWH.
    In the said MOA, it was agreed the Baguio City government will undertake implementation by contract of the DPWH project.
    This included, "construction/repair/rehabilitation/improvement of various infrastructure buildings including local projects like construction of the multi-purpose building at the Athletic Bowl. The project is worth P50 million. On March 18, 2022, Special Allotment Release Order (SARO)-BMB-A-22-0002808 in the mentioned amount was issued with the stipulation that the funds released shall be used solely for the purposes indicated therein,” the COA said.
    “The city government therefore,” the COA added, “was designated as implementing agency to accomplish the DPWH project which is a nationally funded project under the General Appropriations Act for the fiscal year of 2021 (GAA FY 2021) DPWH Regular Infrastructure Program, Local Program.”
    The COA noted that subject project was not a local project of the city government of Baguio to be funded by the DPWH, but rather, a national government project to be implemented by the city government of Baguio.
    An initial cash advance amounting to P25 million was released by the Baguio City District Engineering Office (DPWH-BCDEO) on June 14, 2022 for the first partial payment for the construction.
    The disbursement voucher (DV) stating the amount was supported with a Statement of Work Accomplished (SOWA) showing that the project paid was 50.361 complete as of August 39, 2022 was certified by the Baguio City Buildings and Architecture Office (CBAO). 
    The contract agreement attached to the DV contained two projects. Project A was construction of the multipurpose building at Athletic Bowl while B was the Baguio City Youth Convergence Center and Indoor Sports Complex at the same place.
    Through verification, a bids and awards committee resolution was unanimously adapted by the city government on January 11, 2022 confirming the construction of the multi-purpose building and the construction of a youth convergence center both at Athletic Bowl were one and the same.
    The COA also noted that “based on contract documents submitted, these showed the invitation to bid for the city government project – construction of a youth convergence center and sports complex was posted three months before the project MOA was executed for the DPWH project "Construction of multipurpose building at the Athletic Bowl. On August 2-24, 2021, an invitation to bid for the construction of the youth convergence center was posted and the bid opening was conducted on September 7, 2021.”
    The COA bared “there were two contracts drawn between the city government and the construction firm which won in the contract bid. The contract 1 included A. The construction of the youth convergence center and sports complex care of CBAO and B. the Baguio City Youth Convergence Center and indoor sports complex care of the CBAO again.
    The amount of the first contract is P381, 253, 484.88 and dated December 2021.
    “The contract 2 includes the construction/repair/rehabilitation/improvement of various infrastructure buildings including local projects like the construction of the multi-purpose building at the Athletic Bowl and the youth convergence center and sports complex and the Baguio City Youth Convergence Center and Indoor sports complex amounting to P381,253,484.88 and dated August 30, 2022.
    “Funds for the city government project were obligated before bidding was posted on August 2, 2021 with the following breakdown: A. The construction of the youth convergence center and sports complex care of CBAO with approved budget for contract (ABC) of P50 million sourcing the fund from the Trust Fund (416-019-008) and B. Baguio City Youth Convergence Center and Indoor sports complex care of the CBAO with ABC of P340,386, 870.80 with funding source from Annual Investment Plan and 1st Supplemental AIP of 2020. The overall amount us P390,386,870.80
    "Verification of the subsidiary ledger balance of the Trust Fund account 416-019 revealed that as of date of bidding, there were no funds received from the DPWH, nor any funds available under that account for the construction of the youth convergence center and sports complex care of CBAO. Therefore, the purchase/obligation request for the purpose was not valid and that the component-A portion of the City Government Project -Construction of a Youth Convergence Center and Sports Complex c/o CBAO amounting to P50 million was not actually funded when the projects was posted for bidding,” the COA revealed upon verification of necessary documents.
    According to the COA, the funds received from the DPWH for the construction of the multi-purpose building were used to pay the progress billing of another ongoing city project contrary to the terms of the Project MOA, as well as to the GAA FY 2021. 

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COA audit bares Baguio ‘irregular’ projects; city council wants reports

BAGUIO CITY – City councilors told the City Environment and Parks Management Office (CEPMO) to submit to the local legislative body a report on actions taken relative to observations and recommendations made by the Commission on Audit on city government projects some of which were reportedly irregular for not being completed or incurred slippages which included those based from memorandum of agreement between the local government and Baguio Lion’s Club. 
    Resolution 196, series of 2023 made by the council’s committee on laws, human rights and justice, in its 5th endorsement dated March 14, 2023, said management observations and recommendations should be attended to.         
    Taking note of annual reports for years 2020 and 2021, the body said there was need for the city council to be appraised on actions on matters dependent on action taken by the executive on observations or recommendations.       
    The body said it may not be proper to expect the body to act on a contract or memorandum of agreement that was not presented to it or on one that it has not confirmed or authorized.         
    For the said purpose, the committee recommended that the CEPMO submit a report to the council on action taken relative to the audit observations and recommendations on the MOA the local government entered into with the Baguio City Lion’s Club.        
    Earlier, in her letter dated June 30, 2020, lawyer Eden D. Tingson-Rafanan, regional director of the regional Commission on Audit  transmitted annual audit report on the local government for 2019 with findings and recommendations.        
    These included validity and accuracy of adjustments made in the amount of P148,067,240 to the Land Bank account under the PPE that cannot be established due to non-submission of relevant supporting documents thereby precluding complete validation, verification of the pertinent accounts contrary to the provisions of COA Circular No. 2010-001; completion of project ‘reforestation/urban greening project, access road opening and construction at Botanical Garden known as establishment of Baguio City arboretum phase 2’ with a contract cost of P12,292,367.92 that was delayed with the contractor incurring a significant negative slippage of 48.82 percent as of Dec. 31, 2019 and depriving constituents of timely use of the facility.
    The council said out of 534 remaining local development projects from 2008-2019, only 12.36 percent or 66 projects were reported as completed as of Dec. 31, 2019 while the rest remained unimplemented defeating the purpose for which the fund was created as prescribed under the DILG and DBM Joint Memorandum circular (JMC) No. 2017-1 dat6ed Feb. 22, 2017
Programs, projects and activities indicated in the city government’s report on the utilization of local risk reduction and management fund programs, plans and activities, disclosed 64 activities of which 24 activities or 37.50 percent was fully implemented at year end for various reasons, thus, the goals and objectives of the LDRRMP were not fully attained, the council said.
    Collection of market stall rentals was not efficient resulting to delinquency of payments ranging from three months to 17 years totaling P966,613 contrary to  provisions of City Tax Ordinance No. 2000-001, the legislative body added.
    Final, executory audit disallowances and audit charges amounting to P522,792.81 and P3,479,925.30, respectively, reportedly remained unsettled as of Dec. 31, 2019 contrary to the provisions of COA Circular No. 2009-006 dated Sept. 15, 2009.
 

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Baguio council wants millions of Covid-19 funds accounted for

BAGUIO CITY – The City Council told the city Health Services Office (CHSO) to submit within two weeks upon receipt an updated report to the local legislative body utilization of the Covid-19 supplemental budget amounting to P94.2 million under ordinance 92, series of 2021, current Covid-19 operations in the city and strategies to address spread of the virus.
    Under resolution 298, series of 2022, legislators said they wanted updates on how the local government utilized funds provided by said ordinance.
    Last year, the council also required the CHSO to submit a detailed report on the utilization of the Covid-19 funds appropriated by the local government prior to the enactment of ordinance 92, series of 2021.
    The body also wanted with updates on strategies with the emergence of variants of the virus aside from threat of monkey pox among other illnesses that pose threat to health condition of the people.
    The body said there was need for concerned offices to provide the local legislative body with updates on implementation of their programs, projects and activities and how funds for the same were utilized for purposes of transparency and accountability before allowing further requests for appropriations through supplemental budgets.
    The approved resolution will be transmitted to the CHSO for its appropriate action, information, guidance and ready reference. By Dexter A. See

 

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COA flags Nueva Ecija LGU for hiring unlicensed teachers

The Commission on Audit (COA) has flagged the provincial government of Nueva Ecija for hiring teachers who did not pass the Licensure Examination for Teachers (LET) and did not undergo screening by the Provincial Local School Board (PLSB).
    In its 2021 annual audit report, the COA said only 45 of the 110 teachers hired were LET passers while only nine were listed in the Department of Education (DepEd)’s Registry of Qualified Applicants (RQA) for schoolyear 2020-2021.
    The COA said this contravened a joint circular of the DepEd, Department of Budget and Management and Department of the Interior and Local Government, which states that local school boards should utilize the list found in the RQA.
    The COA also cited the operations manual of the Nueva Ecija LSB, which states that only LET passers are allowed to become public school teachers.
    ”Though there were exemptions in hiring non-LET passers to be assigned in remote areas of the province, the LSB could not provide proof that the offer was made to the enlisted names in the RQA and they declined or waived the teaching opportunity,” the audit report read.
    The COA said the PLSB point person admitted that the hiring of the non-LET passers was a discretion of the district supervisor and did not pass screening by the board.
    The audit agency said the hiring of the non-LET passers deprived teaching opportunities to those who are more qualified, adding that it might compromise the quality of education in public schools in the province.
    In a written reply, the provincial government admitted that its PLSB “may have overlooked” the prescribed qualification standards and procedures in the hiring of teachers for the schoolyear.
    The PLSB committed to “revisit” the screening and selection procedures to fully comply with qualification and procedural parameters in applicable guidelines. – Elizabeth Marcelo
 

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Baguio execs deny COA findings on Covid funds

By Aileen P. Refuerzo

BAGUIO CITY – “Walang nawala.  Walang overpriced.  Walang corruption.  We were very transparent.”
    Mayor Benjamin Magalong, City Accountant Antonio Tabin and City General Services Officer Eugene Buyucan assured this as they observations of the Commission on Audit (COA) on the disbursement of the P61 million cash advances relative to the city’s Covid-19 response in 2020.
    City officials said all expenses made were for Covid-19 response and done in accordance to the provisions of the Bayanihan to Heal as One Act (Republic Act 11469).  All expenditures, they added, were properly accounted for and government was not shortchanged.
    In Observation Memorandum (AOM) No. 2021-008-2020 dated March 19, 2021, the COA observed that the cash advances were granted to two accountable officers without any specific purpose and supporting document.  It also took note of the use of cash instead of check payment, among other observations.
    The city officials explained that the procurement procedures were tweaked as was necessary at that time because the situation called for it. 
    “Given the extraordinary circumstance brought by Covid-19, certain accounting and auditing rules and regulations could not be strictly implemented considering the limitations in mobility and manpower,” they said.
    They said the procurement procedures were tweaked as was necessary at that time because the situation called for it.
    “That was an extraordinary time when everyone was at a loss on to how to properly respond to the crisis that all available remedies had to be explored. It was also a time when everybody was grappling for available supplies -- food, PPEs and other logistics.  We were practically on a grab-whatever-is-available-and fast” situation at that time,” they related.
    “We had to adjust procedures simply because we had to act with dispatch.  Faced with that kind of situation, if we still followed regular procedures then we would have ended up empty-handed – no supplies at all.”
    They assured that processes are now being complied with and the entire amount had practically been fully liquidated.
    Here is the city’s answer to the issues put forward by the COA as submitted by Buyucan addressed to COA Audit Team leader Alicia Estibar and Supervising Auditor lawyer Nover Bate:
    On the lack of specific purpose for the cash advances: “All cash advances for Covid-19 operations.  All procurement made were covered by purchase requests by the various departments based on their assessment of the actual situation on the ground.”
    On the technical specifications and quantity to be procured: “Due to the scarcity of commodities during the Enhanced Community Quarantine, it was imperative to immediately purchase what is available from suppliers operating at that time.  Hence, the technical specifications and quantity could not be specified as various suppliers offer different brand and items.    
    “At the end of the procurement, the needs of the end users were satisfied and complied.  Every item delivered was accepted and inspection by the end-users and the GSO. “
    On settlement of cash advance: “Supporting documents required from both supplier and end-users were not immediately complied with due to the situation where mobility and availability of accountable person is affected i.e. work-from-home schedule of employees, end-users busy attending to Covid-19 response (relief goods, triage, isolation, checkpoints, SAP etc.)
    On the transfer of cash advance to GSO accountable officers: GSO was authorized to directly negotiate or conduct procurement activities.  Section 4 (k) of the Bayanihan to Heal as One Act (Republic Act 11469) mandates the government to undertake procurement in the most expeditious manner.
    On the payment of cash instead of check: During the ECQ, banks operated at limited hours and working capacity.  Cashiers of the City Treasury Office also were on a work-from-home schedule prompting the GSO to adjust its process.  Check payment was not the most expeditious way to procure items as most suppliers preferred cash payment including the NFA.  Payment occurred right after deliveries were made.

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COA flags Ilocos Sur gov’t over P863-M disbursements

The Commission on Audit (COA) has flagged the Ilocos Sur provincial government over its questionable disbursements last year.
    “Various disbursements with an aggregate amount of P863,581,260.88 were made even with incomplete documentary requirements, without the approval of proper officials and with deficiencies noted, affecting the validity, legality and propriety of the transactions,” the COA said in its annual report.
    The audit body said 30 disbursement vouchers pertaining to infrastructure projects have no program of work, bill of materials, letter request from the contractor on the payment of progress billing, statement of time elapsed for work accomplished and contractor’s affidavit on the payment of laborers and materials, among others.
    At least 112 disbursement vouchers pertaining to procurement of various goods were not supported with delivery and official receipts, project procurement management plan, acknowledgement receipts of items as well as business permits and income tax return of the suppliers.
    The COA said 34 vouchers relative to the procurement of services and 103 others involving financial assistance were not supported with documentary requirements.
    The audit body said some of the purchase orders and contracts of service were not signed while purchase requests were undated.

The provincial accountant vowed to coordinate with concerned implementing units for the submission of the needed documents and completion of those with deficiencies.

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Cordillera gov’t group to check ‘problematic’ projs

By Marlo T. Lubguban

BAGUIO CITY - The Cordillera Regional Project Monitoring Committee is set to inspect this year “problematic” government infrastructure projects and programs. 
    This, after the RPMC reviewed it 2020 accomplishments and 2021 work plan during its first quarter meeting on Feb. 9.
The RPMC conducted field visits in 2020 in compliance with health guidelines and border restrictions.
    A total of 12 priority project sites were visited in 2020.
    Along with this, the RPMC prepared four quarterly monitoring reports, conducted four regular committee meetings and webinar on school building guidelines under the DepEd Basic Educational Facilities Fund (BEFF).
    The RPMC visits sites of problematic projects under the regional project monitoring and evaluation system (RPMES) and holds problem-solving sessions to get projects back on track and meet project timelines.
    In 2019, the RPMC visited projects with good performance to learn their best practices that may applied in other projects.
    Before the pandemic, the RPMC visited sites in Ifugao in  March to inspect problematic and good-performing projects.
    Among the sites visited were Ifugao General Hospital, Alfonso Lista pump irrigation project, Duit Elementary School building project and the Ifugao State University water system project.
    With the onset of the pandemic, the committee focused on implementation of the social amelioration and emergency subsidy program (SA/ESP).
    The RPMC visited Baguio City barangays during pay-out activities, Baguio City relief operations center at the PFVR Gym, and Baguio SAP operations center in DepEd Baguio Division Office in April.
    The RPMC ended the year with inspection of sections of BLISTT Outer Ring Circumferential Road on Dec. 4, 2020.
    The implementation of road construction and slope protection projects were noted to be ahead of schedule.
    The DPWH said this was due to strict adherence to schedule and compliance of contractors.
    The sections were Section 2, Kamog Jct.-Calot-Pappa-Bagong-Balluay-Tuel Road from Sablan to Tublay,  Labey-Lacamen road in Tublay, and Bokod-Labey-Lacamen road from Bokod to Tublay (C2-C3).
    As part of its monitoring and evaluation capacity building program, the RPMC conducted a webinar on school building guidelines on Aug. 18, 2020 to guide project monitoring committees on prescribed building guidelines under DepEd’s basic education facilities funds (BEFF) as implemented by the DPWH.
    Through regional offices of the National Economic Development Authority and National Irrigation Agency, the RPMC recently concluded its February 10 webinar on NIA irrigation projects.
    Priorities for inspection in 2021 are the “Bagong CIS (Crisis Intervention System)” in Sablan in the first quarter and the roll out of Covid-19 vaccines for the rest of the year.
    RPMC will also focus on information dissemination to increase public awareness on status of government-implemented projects.

 

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CoA lists 1,740 problematic DPWH projects

EDITORIAL 

A total of 1,740 projects of the Department of Public Works and Highways (DPWH) totalling P65,988,738,735 were not finished or completed on time, the Commission on Audit (CoA) reported.
    In its consolidated report on the DPWH for 2019, CoA said it evaluated 2,411 projects totaling P101.69 billion from 2015 to 2019.
    It bared that 1,740 projects “were not finished or completed within the specific contract time or required completion date,” 550 projects totaling P31.05 billion were suspended, 40 “costing at least” P1.44 billion were terminated, and 81 totaling P3.2 billion “have not been started at all during the year.”
CoA said 214 projects involved building schools and 26 were farm-to-market roads.
    The delays in the implementation of the projects were traced to “numerous suspension orders, time extensions and variation orders issued by DPWH offices.”
    Among the factors contributing to the delays were typhoons or unfavorable weather conditions, peace and order problems; road right-of-way acquisitions; and the lag in the issuance of excavation permit/clearance from” local government units.
    CoA said except for typhoons or unfavorable weather condition, all the other issues “should have been considered and resolved during the preliminary engineering study on the viability of the project and pre-construction activities.”
    It also cited the “absence of coordination mechanism in place, which is among the vital parts of the feasibility and preliminary engineering study.”
    CoA said 54 of the delayed infrastructure projects “incurred delays that exceeded the allowable 10 percent of the specified original/revised contract time.”
    Despite the issues leading to the delays, DPWH did not rescind or terminate the contracts or impose liquidated damages to the contractors.
    The 54 projects cost P607.81 million, CoA said.
    It said the DPWH must minimize the delays by seeing to it that issues such as relocation of informal settlers and viability of the project sites are addressed, and the projects are strictly monitored and supervised, among other things.

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COA outs Prime Water's P24- M claim vs Ecija water district

JAEN, Nueva Ecija -- The Commission on Audit recently rejected a claim amounting to P24.2 million filed against the state-run Jaen Water District in Nueva Ecija over a joint venture agreement in 2016.

The COA said in its Jan. 17 decision the petitioner, Villar-owned PrimeWater Infrastructure Corp., failed to show proper documentation proving that JWD owes millions of pesos.

PrimeWater had filed its petition in June 2018.

"Without the required documents to prove compliance and the duly accounted amount prayed for, this commission is constrained to deny the petition," COA said.

But state auditors said PrimeWater can refile its petition if it presents more documentation, beyond the June 2019 certification from JWD stating that no payment has been made for the transaction.

"It is incumbent upon PrimeWater to present evidence that the amount claimed is accurate, such as its financial statements under the [joint venture agreement], supported by schedules of revenues, operating expenses, capital expenditures, and changes in the working capital," COA added.

JWD entered into an agreement with PrimeWater in October 2016 for the "financing, development, rehabilitation, expansion, improvement, operation, and maintenance of the water supply and septage management system" in the municipacility of Jaen in Nueva Ecija.

The operations started in January 2017, but since PrimeWater's business permit was still under processing, official receipts of JWD were used for all transactions, including customer payments.

The money claim arose when the two parties agreed in 2017 to a full settlement and reconciliation of accounts in relation to their agreement, amounting to P24.2 million payable to PrimeWater.

But while the Office of the Government Corporate Counsel issued a favorable opinion on the planned action, the COA Regional Office advised that the commission has exclusive jurisdiction over settlement of money claims. – Rappler.com

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COA finds Pampanga mayor liable for anomalous purchase of P39.2 M construction materials

By Ben Rosario

MEXICO, Panpanga -- The three-man Commission on Audit-Commission Proper has ordered the filing of criminal charges against a Pampanga mayor and a construction supply firm in connection with irregularities in the purchase of some P39.2 million construction materials for this municipality

In a decision handed down early this week, the COA-CP headed by Chairman Michael Aguinaldo affirmed the Notice of Disallowance issued by the Special Audit Team on June 2, 2013 to the local government of Mexico under Mayor Teddy Tumang.

In the decision, the COA panel directed the audit agency’s prosecution and litigation office to refer the case to the Office of the Ombudsman for the possible filing of appropriate charges against Tuman, Marlon L. Maniacup, chairman of the Mexico Bids and Awards Committee, Jesus S. Punzalan, BAC vice chairman and all BAC members.

Charges were also sought against Willian Colis, proprietor of Buyu Trading and Construction; Avelina P. Reyes, and Lucila M. Agento, municipal treasurer and budget officer, respectively; and Romeo M. Razon.

“In view of the violations of the provisions of RA No. 9184, this case shall be referred to the Office of the Ombudsman for investigation and filing of appropriate charges, if warranted, against the persons liable for the transactions,” the COA-CP said.

The ND’s were based primarily on the series of anomalous purchases of a total P39,207,066.70 worth of construction materials on various dates in 2007, 2008, 2009 and 2011.

COA special audit examiners noted that the construction materials were supplied by Buyu Trading and Construction, described by COA as a “supplier with questionable capacity.”

Records of the case showed that the BTC’s registered palce of business is a residential home and that no construction materials was found there when inspected by audit examiners.

Auditors also disclosed that BTC failed to issue official receipts to cover the transactions.

Further, COA said the Bids and Awards Committee resolution of award was found to be “fabricated to facilitate payment of disbursement vouchers.”

“Price quotations supposedly submitted by different dealers in sealed envelopes appear to have been filled by one and the same person due to similar handwriting on the quotations,” the ND records indicated.

Tumang appealed the ND, arguing that there has been ‘no iota of evidence” that would evidence conspiracy between Mexico officials and the construction firm.

However, the SAT declared it did never held Tumang liable for conspiracy with the winning bidder.

Instead, auditors implicated him for failing to do his job of exercising due diligence over fiscal matters of his municipality.

The COA CP upheld the issuance of the ND, pointing out that local officials were blamed for resorting to “splitting of contracts” which is prohibited under Republic Act 9184, the Government Procurement Act.

The panel stressed that splitting of contracts is usually resorted to in order to “avoid the circumvention of the requirements of law for public bidding and shopping.”

“In this case, the amount covered by each contract, exceeded the allowable threshold, which is P100,00000 for a fourth class municipality like Mexico, Pampanga, that should have required prior approval of the Head of Procuring Entity (HOPE) and be justified by the conditions provided under Section 48 of RA No. 9184,” explained the COA-CP.

It added: “Clearly, none of the conditions existed to qualify shopping as an alternative mode of procurement.”

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