EDITORIAL

Massive Fiscal Mess In Iloilo Town

COA uncovers millions in fund mis-use, mis-appropriation

by Florence F. Hibionada

Over P4.4 million in unliquidated cash advances, wrong use of Special Education Fund (SEF), millions in unimplemented programs, over P7.4 million in lost earnings,　and while at it, inadequate bond for town treasurer and an unsecured treasurer’s office.

Senior State Auditors summed up this year’s additional findings on the 2010 operations report of the Municipality of Tigbauan, Iloilo. This, as the latest Annual Audit Report (AAR) from the Commission On Audit (COA) uncovered as well town collections not remitted intact or in full for at least five (5) years in a row.

Deposits were "very much delayed which range from weeks or a month and even longer." And such is totally unacceptable and wrong, Senior State Auditor said, "considering that the distance of the agency (Tigbauan) to the authorized depository bank is more or less 25 kilometers only."

To note, the law calls for immediate deposit of government money as soon as it reaches P2,000.00 or US $47.

Documents showed delayed deposits of collections ranging from over P744,000 of the General Fund (GF) in 2006 and over P953,000 from the same year’s Special Education Fund (SEF) collections.

In 2007, over P1.1 million in GF collections and over P371,000 in SEF;　in 2008, over P1.2 million in GF and over P1million in SEF;　in 2009, over P3.9 million in GF and over P646,000 in SEF; and in 2010, over P813,000 in GF and over P668,000 in SEF collections were all deposited late.

As such, COA wants immediate action from town officials particularly Mayor James Excel Torres with the AAR now duly transmitted .

The exact amount wanting of liquidation is P4,461,511.73 "thus exposing government funds to misappropriation and misuse," COA pointed out.

And wrong dis-bursements too from the SEF worth P223,027.39 "thus depriving the students and teachers of the benefits derived therefrom."

"In the post-audit of disbursements…, it was noted that there were disbursements made by the Local School Board amounting…, which were not in accordance with the rules and regulations on the utilization of Special Education Fund," excerpts of the COA findings revealed.

With this, the Commission On Audit recommended for the immediate stopage of SEF mis-use "not in accordance with the guidelines set for its utilization." The pro-visions of the law, COA stressed, "should be strictly complied with."

How about the issue of nearly P6 million in unimplemented projects identified under the mandatory 20 percent Development Fund? COA, in validating the report said constituents were deprived of the benefits.

To note, it is mandatory for each Local Government Unit (LGU) to set aside said 20 percent Development Fund for local development plans. While compliance was met on the budget allocation, unimplemented were over P7.4 million worth of projects.

"It shall be the responsibility of every Municipal Mayor to ensure that the 20 percent of the Internal Revenue Allotment (IRA) is optimally utilized. Hence, it is but proper that programs and projects contained in the development plan be fully implemented," the COA said.

As for lost earnings, COA reported of unrealized income worth P7,440,000.00, no thanks to some 48 market stalls left unused.

"The Municipality entered into a loan agreement of P20 million with the Development Bank of the Philippines for the construction of public market perimeter stalls. The loan was released on April 28, 2009. The project was completed sometime in the latter part of 2009 and is ready for occupancy on the early month of 2010. However, as of this writing, the stalls are not yet occupied/rented," the COA report went.

Continued delay, COA stressed, becomes "a burden by paying for the loan amortization without deriving income from it."

"The projected income had the market stalls were rented during the year could have been a big help in sustaining market operation as well as accomplishing the programs and projects that would alleviate the lives of its constituents," the COA pointed out.

And while a bidding for the stalls’ lease have been set, COA auditors learned of the delays thus calling anew the attention of Mayor Torres.

"The act of the Local Chief Executive in postponing the bidding and revising the guidelines are offshoots of the possible mockery of the bidding," the report stated.

"In the conduct of cash examination, it was noted that collections of the municipality ranges an average of P1.5 million per month or more but the bond of the OIC Municipal Treasurer was only P225,000.00 thereby exposing government funds to risk in case the accountable officer absconds, transfer or is relieved from the service," the COA said.

Worse, for even the town’s treasurer’s office itself found by COA as "not properly secured exposing government funds and property to risk of loss thru theft due to its accessibility to unauthorized personnel contrary to sound internal control."

Provide security, for inside the treasurer’s office is a restroom for public and common office use with local taxpayers and employees in nearby offices "free to go in and out because there are no restrictions impose on them." /MP