COA uncovers millions in 'lost' funds, massive mess in Btac. Nuevo, Dumangas
Millions in unascertained government expense and extensive failure in sound fiscal management has been noted in two more Iloilo towns by government auditors.
With the annual audit recently concluded by teams from the Commission on Audit (COA), "comments and observations" disclosed serious deficiencies both in the financial coffers and performance of officials in the municipalities of Barotac Nuevo and Dumangas.
In Barotac Nuevo, Mayor Pedro Hautea's attention was called on four major cuts that contributed to the decrease in the town's total income as compared to the previous year. For instance, COA reported of over P4.2 million in decreased local taxes, over P99,000 in decreased permits and licenses fees, decrease of over P115,000 in service income and decrease of over P197,000 in business income.
COA further highlighted twelve findings topped by the over P17.8 million in unascertained cash in bank attributed to the failure of the town's accountant to prepare the mandatory monthly bank reconciliation statements.
With the COA's report came the "promise" though for corresponding action "the soonest possible time."
Questions raised as well on the procurement of over P238,000 worth of fertilizers done through "shopping" and not competitive bidding. Records obtained by The News Today (TNT) disclosed Sherton Enterprises as the supplier covered by Land Bank of the Philippines check no. 1984835 dated October 3, 2005.
As COA pointed out though, "shopping" as option for purchases shall only be employed in unforeseen contingency with the amount involved not over P50,000. "Shopping" may also be used for procurement of ordinary or regular office supplies.
"The 278 bags of Urea fertilizers in the amount of P238,422.92 were purchased through shopping rather than competitive bidding. Fertilizers are not ordinary or regular office supplies and equipment and therefore do not fall within the purview of Section 52 of Rule XVI of the implementing rules and regulations of Republic Act No. 9184," the COA stated while adding that "shopping" as a mode in yet more accounts bore no recommendation nor were supported by the Bids and Awards Committee (BAC).
Questions too on the P50,000 disbursement of the town's Local School Board given as financial assistance to the Barotac Nuevo Football Club. As the COA pointed out, such is not a priority expense with the town not allowed to grant financial aid to a private group.
Barotac Nuevo officials also have over P.5 million in unliquidated cash advances including Mayor Hautea who needs to officially explain his P132,991 cash advance then discovered by the audit team. Such alongside the over P12.9 million in shortage then incurred by former town treasurer Wilfredo Caras. A total of 23 town executives were recorded to have unsettled cash advances with the mayor holding the biggest amount and one Isabel Juarez with the least to settle in her P2,400 cash advance.
In the Municipality of Dumangas, COA audit disclosed of a P2.1 million decrease in total income pegged at over P57 million as compared to previous year's record of over P59 million.
A total of eleven findings comprised the recent audit marked by the discovery of 88 town properties valued at over P24 million that had no Torrens Title thus exposing such to loss, squatters and unlawful occupants.
COA also called the attention of Mayor Rolando Distura on the acquisition of four motor vehicles using the Special Education Fund (SEF) deemed by the Commission as procured under "unrelated and unauthorized purposes." A total of P1,392,000 were spent for these vehicles acquired for the use of district supervisors, principal, teachers and other academe personnel.
No legal basis, the COA told Mayor Distura on using the said fund with the vehicles not an allowable SEF expense.
And there are 40 "delinquent" stall holders in the town's public market with uncollected rent of over P216,000. Main reason for this is the lack of lease contract between the stall holder and the town.
COA audit team would also want Mayor Distura to ensure a quick fix on the disbursements of over P8.7 million taken from the town's 20% Development Fund "improperly taken up in the General Fund."
Such, as the Commission wrote, "Part of the responsibilities of the local government is to ensure that public funds especially the 20% Development Fund are appropriated and disbursed only for the very purpose or purposes for which such funds are intended."
Dumangas incurred major expenditures of nearly P20 million in the past year including gasoline expense of over P2 million and travel expenses of its officials amounting to over P1.7 million.