COA maintains: Capitol's handling of P10M oil spill calamity fund irregular
The Commission on Audit (COA) in a verification made on last year's financial transactions of the Iloilo Provincial Government affirmed questionable handling of the Tupas administration on the P10 million Presidential calamity fund.
With six of the fifteen "significant findings" dedicated to the Capitol aid of President Gloria Macapagal-Arroyo, government auditors eventually had to issue "Notice of Suspensions" on at least two purchases made. All six findings also backed earlier Audit Observation Memorandum (AOM) that first brought to light what the Commission referred to as "irregular expenditures."
In a Value For Money (VFM) audit, COA reiterated its report that questioned releases to towns not identified as disaster areas.
Provincial Administrator Manuel Mejorada justified the move of Governor Niel Tupas.
"It was granted purposely to prevent the spread of oil spill along these coastal areas. He alleged that during this period, it was not yet possible to determine what particular municipalities will be affected by the oil spill," excerpts of the COA report went.
Government auditors did not buy Mejorada's justification.
"Our confirmation, however, of the utilization of the financial assistance granted to the 11 municipalities disclosed that one municipality used the P100,000 for the repair of the vehicle and for the purchase of a digital camera, one municipality, for the purchase of a pumpboat, while the accountant of another municipality certified that the amount received were deposited as trust fund and was not utilized as of this date," the report continued.
Mejorada promised to look into the matter and vowed to impose appropriate measures for the improper utilization of the financial assistance. It was also agreed and made clear, the Commission reported, that the Capitol will use financial assistances accordingly, as "...violation thereof shall be dealt with accordingly."
Questioned next was the delayed procurement of fishing equipment and supplies.
"We recommend that the Governor or his representative, 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 report stated.
More questions here as other than the delay, the equipment and supplies when eventually purchased turned out to be overpriced.
Valued over P7.6 million, the bidding was split into ten batches.
"It could be gleaned from the instances above that there was inconsistent compliance with the required posting… Consequently, all of the ten (10) procurement contracts were awarded to a lone and same bidder, the Foodwealth Agro-Vet Trading with business address at Tabuc Suba, Jaro, Iloilo City," the COA report continued. "Although bidding by a lone supplier is allowed… the award of the contract to Foodwealth Agro-Vet Trading seemed disadvantageous to the Province of Iloilo based on the results of our inspection.."
The COA team in a verification made with beneficiaries were told that same units were bought before for only P4,500 each. The Capitol bought its stocks at P7,499 each.
Further still came the air cool engines where of the 400 units reportedly purchased, COA only got confirmation of 216 units. Thus the first Notice of Suspension issued on 184 units unaccounted for.
"…if warranted lost, the accountable officials and employees would be severally liable for the equivalent cost of P1,415,880," the report went.
Same scenario with the 650 units of kerosene pressure lanterns where 292 units were unaccounted for valued over P1.3 million. The second Notice of Suspension was issued thereafter.
And finally, a COA finding calling the attention of the Provincial General Services Office chief for not notifying the Auditor within 24 hours of the acceptance of the questioned air cool engines.