Corrupt CEO employees target of fraud audit
ZULUETA
Employees of the City Engineers Office (CEO) who are into illegal transactions that contributed to the government's losses in terms of collections must now prepare as the Sangguniang Panglungsod (SP) already requested the Commission on Audit (COA) to conduct a fraud audit.
In its regular session Wednesday the council approved a resolution requesting COA to conduct a fraud audit at the CEO. The resolution was authored by Councilor Perla Zulueta, chair of the committee on ways and means.
In her resolution, Zulueta observed that the CEO had significantly low collections from January 2004 through the first quarter of 2006 particularly from the payments of building, electrical and occupancy permit fees despite the construction boom now prevailing in the city.
In the first quarter of 2006 alone, CEO chief Engr.Marito Amatorio reported that they have made a collection of P995,731. However, based on the records of the City Treasurer's Office (CTO), the collection only amounted to P584,268. There is a difference of P411,463. The figures of the CEO do not match with the actual collection of the CTO.
Zulueta said COA has both the personnel and expertise necessary to conduct a technical fraud audit on CEO which is considered vital in proving if alleged irregularities in the said office exist.
Zulueta said the council has in its possession several documents which they are willing share with COA to help in the conduct of fraud audit.
The author added that the recent claims made by several sources on alleged irregularities happening inside the CEO allegedly involving its officials and employees have made an investigation on the issue imperative to help the council craft ordinances that would prevent similar things from happening in the future.
Earlier, CEO employee Ricardo Gumabong submitted a formal complaint with the City Council implicating his superiors City Engineer Marito Amatorio and Engr. Marcelino Umahag in alleged anomalies.
However, Gumabong is also under investigation by the City Legal Office after he attempted to extort a fertilizer firm and a pharmacy using the CEO.