COA to guv, 4 office chiefs: 'Explain P10M irregular expenditures'
Government auditors are now seeking for a major explanation from Iloilo Governor Niel Tupas Sr. and at least four top Capitol office chiefs relative to the transactions surrounding a P10 million Presidential subsidy. Charged against the national government's Calamity Fund in 2006, Governor Tupas, General Service Office (GSO) Chief Ramie Salcedo, Provincial Accountant Lyd Tupas, Provincial Budget Officer Elena Lim and Provincial Treasurer Melba Sullivan were singled out in the request.
Contained in an Audit Observation Memorandum (AOM) of the Commission on Audit (COA), the P10 million government funding are now feared to become "irregular expenditures." The multi-million assistance was meant as immediate disaster response of President Gloria Macapagal-Arroyo following the August 11, 2006 oil spill that hit Guimaras and extended up to Iloilo waters.
Yet as per procedural validation made by the Commission, all P10 million as spent by the Iloilo Provincial Government now appeared to be questionable government dealings.
A total of seven "significant observations" await official explanation starting off with the P1.1 million total financial assistance distributed to 11 Iloilo coastal towns.
"Not identified as disaster areas," the COA noted with the observation anchored on the Consolidated Damage Report prepared by the Provincial Disaster Coordinating Council (PDCC). As mandated by law, relief operations and related activities during and after resurgence of calamity fall under the jurisdiction of the PDCC.
No less than PDCC Executive Secretary Jerry Bionat was reached then by the COA who told visiting government auditors that there were "no other report prepared by the PDCC that would identify the 11 coastal municipalities….."
"Likewise, he told us that the Provincial Administrator conducted an aerial inspection of the areas that might qualify as disaster areas but did not submit the related report to the office of the PDCC for consolidation," the AOM stated. "…the expenditures incurred by the Provincial Administrator during the conduct of aerial inspection of possible disaster areas would result in wastage of provincial funds for his failure to submit related report."
As such, the COA was forthright with its 'request.'
"We recommend that the Governor explain why the 11 municipalities not identified as disaster areas in the Consolidated Damage Report of the PDCC were granted financial assistance totaling P1,100,000 out of the calamity fund from the Office of the President," the AOM continued. "The lack of sufficient bases to rationalize the grant of financial assistance to the 11 municipalities will warrant the liability of the Provincial Accountant, Provincial Treasurer and Governor in the disbursement of P1,100,000 out of the calamity fund because established rules, regulations, procedural guidelines, policies and principles were not observed."
Further still, the Commission also questioned the over P7.6 million procurement of fishing equipment and supplies for the purported use of the "oil spill casualties."
"We recommend that the Governor who requested and approved the procurement of the fishing equipment and supplies and whose Office took charge of the distribution thereof to the casualties of the oil spill incident explain the delayed procurement and distribution of these items," the COA said.
More questions raised on the transaction with the manner of procurement likewise showing glaring defects dubbed by the Commission as "inconsistent compliance" with government procurement act.
"Although bidding by a lone supplier is allowed…," the COA said, "the award of the contract to Foodwealth Agro-Vet Trading seemed disadvantageous to the Province of Iloilo based on the results of our inspection of the procured items since there was a lack of competition with regards to the contract price of the fishing equipment and supplies procured."
In fact, the COA team added, even the beneficiary-fishers reached by the group admitted buying similar units at way cheaper prices than the P7,499 per unit bought by the Capitol.
With this observation, the Commission again called for the governor's explanation as to why there was higher Approved Budget Contract (ABC) set for said procurement.
Answers are also sought on COA's discovery of yet more equipment purchased that were supposedly delivered minus the Commission's inspection.
GSO chief Salcedo's attention was called here alongside a request for his explanation.
Similar problem on 400 units of air cool engines where only 95 were covered with Invoice Receipts thereby resulting to over P2.3 million in unaccounted units.
"..if warranted lost, the accountable officials and employees would be severally liable for the equivalent cost of P2,326,395," the COA wrote.
Yet another similar occurrence in the 650 units of kerosene pressure lanterns bought where over P1.6 million were not properly accounted for and 43 units given to non-victims.
"One of them admitted that she used the lantern as light in her house," the AOM added.
And finally, the fishing supplies worth over P538,000 again distributed to non-affected beneficiaries.
"Considering that the recipients were not materially affected by the disaster, most of them sold the items they received," the COA discovered.
"We recommend the Governor explain….," the AOM stated. "We also recommend that the provincial officials and employees responsible for the distribution of the fishing supplies explain why they failed to present the required Invoice Receipts of Property.."