By Marian Z. Codilla
Cebu Daily News
CEBU City Mayor Tomas Osmeña voiced his displeasure yesterday over the Commission on Audit (COA) assessment that the city exceeded its debt payments by more than P700 million or above the 20-percent ceiling allowed for its debt payments.
He said the national government should be happy rather than be critical of the city's payments for the loan it procured to purchase the South Road Properties (SRP).
“It's not that we were throwing money. We are even helping the national government. If we don't pay (the loan), we will lose the 300 hectare (property in the SRP). We are not paying a private bank. The money went to the national government,” Osmeña said.
The COA's audit report on Cebu City caused Capitol officials to challenge the agency to substantiate its findings in light of Osmeña's claim that the city has a budget surplus of P250 million.
Capitol consultant Rory Jon Sepulveda said that based on COA report, the city government was wrong because it didn't allocate a budget for loan interests. “I find that hard to believe because the mayor is a financial analyst),” he said.
The 2008 audit report stated that the Cebu City government failed to pay interest on its SRP loan number 2 amounting to P169.9 million which accumulated from 2004 to 2007.
As a result, COA said loan number 2 was converted to loan number 3 which would then be penalized with additional interest.
Osmeña said the national government through the Land Bank of the Philippines (LBP) gets three percent of the city's total loan payments while the Japanese government collects only 2.7 percent interest.
Of the three percent, the LBP collects two percent and the Department of Finance gets one percent of the loan payments.
Osmeña said the awards the city government received were proofs that it didn't sacrifice the delivery of services and programs to the city residents.
“We have the best malnutrition program in the country. We have the best lupon in the country. Our dengue cases has reduced. I find that deplorable. We increased our allocation to the Cebu City Medical Center,” he said.
Osmeña also said the COA reminded them last year to keep a guest list of all the events the city sponsored with their discretionary funds since they only kept receipts.
The COA said P944,044 in discretionary expenses from January to May 2008 were unaccounted for.
Sepulveda said the lapse committed by Osmeña was tantamount to dereliction of duty and could be filed against him in court.
He said the Ombudsman can initiate an investigation on Cebu City's finances.
He said he found it hard to believe that the city failed to allocate payments for its loan interests.
“Rather than bragging about his skin and bones budget, Osmeña should add a little flesh to it so they can settle their loan obligations,” Sepulveda said.
Sepulveda also said the “city is going underwater” due to the mayor's fiscal mismanagement.
He was referring to Osmeña's remark about the province's proposed school in Naga town which was supposedly located in a property whose portions were submerged in water.
source
Cebu LGU should refund excess payments.
Thursday, August 6, 2009
Saturday, August 1, 2009
COA identifies top execs with excessive claims charged to Capitol
By Florence F. Hibionada
Travel expenses of 13 top personalities of the Iloilo Provincial Government made it in this year’s shortlist of unconscionable and excessive claims.
All disallowed by the Commission On Audit (COA) with full refund of the taxpayer’s money ordered, the list included the governor’s daughter Nielette Tupas Balleza and Capitol lawyer Joenar Pueblo.
Two doctors also made it in the list, Dr. Roberto Castronuevo and Dr. Jeremiah Obañana with Castronuevo even discovered to have tampered the Official Receipts (ORs). Castronuevo and Balleza have both returned the Capitol’s money yet COA in its latest Annual Audit Report (AAR) still identified the duo as amongst the 13 with disallowed travel expenses. It was not clear if with the restitution made the two are now clear of any liabilities.
While expenses for official trips may be charged to the Iloilo Provincial Government, COA noted how limitations are set by law. And with cash advances granted to cover said trips, proper liquidations are likewise required.
Random audit made on the travel of the 13 showed violations ranging from excessive claims to tampering of ORs.
“There are instances when official receipts for hotel accommodation presented are tampered. Confirmation letters inquiring as to the authenticity and validity of the data in said official receipts were sent to the management of the hotel and confirmed official receipts differ from that submitted to support the Liquidation Report. Such act of a public officer is deemed unconscionable and should be properly dealt with by the head of agency,” the COA wrote. “Post-audit of selected vouchers and liquidation reports also reveal excessive claims. Receipts for meals and hotel accommodation presented exceeded the daily limit for such expenses… The travel law clearly states that limits are set for daily expenses (not weekly or monthly).”
As further pointed out by COA, regardless of rank and destination the amount allowed is P800 per day with claims in excess needing special authority. Any amount beyond P800 per day must have a certification from the head of office that the excess is “absolutely necessary in the performance of an assignment and presentation of bills and receipts.”
“We recommend that the Province exercise prudence in granting reimbursements for expenses for out of town travels,” while adding that any and all claims must duly be supported with receipts.
Those with unpaid disallowed travels included Provincial Librarian Noemi Viejon, Mila Layog of the Provincial Cooperative Office, acting Provincial Treasurer Corazon Estelita Beloria, Social Welfare and Development Officer Neneth Pador and Health Office’s Judy Dumayas among others.
As COA pointed out, “unconscionable expenditures” signifies without acknowledge or sense of what is right, reasonable and just and not guided or restrained by conscience. These are unreasonable and immoderate expenses incurred in violation of ethics and morality by one who does not have any feeling of guilt for the violation.”
TNT learned that the questioned Capitol executives were granted authority of P2,500 daily allowance for department heads, P2,000 for assistant department heads and P1,500 for hospital chiefs.
The disbursement vouchers checked though showed meals and incidental expenses as grossly excessive, exorbitant and too lavish.
Said matter was first reported in January this year with the earlier Audit Observation Memorandum (AOM) issued.
For instance, one receipt for one meal of one Capitol executive showed a bill of P2,000. COA was direct with its message then to the governor, “Such can be considered quite excessive for a meal of an individual.”
And there was more.
“Further, two (2) ORs show that personal effects and a laptop accessory are among the expenses reimbursed,” the COA noted.
And more reminders in the AOM to the governor calling his attention to government regulations aimed at preventing excessive and extravagant expenditures.
The ‘travel allowance AOM’ cited Section 164, Article 2 of the Government Accounting and Auditing Manual defining excessive expenditures as “unreasonable expense or expenses incurred at an immoderate quantity or exorbitant price. It also includes expenses which exceed what is usual or proper as well as expenses which are unreasonably high and beyond just measure or amount. They also include expenses in excess of reasonable limits.”
COA likewise reminded Tupas, “the term ‘extravagant expenditures’ signifies those incurred without restraint, judiciousness and economy. Extravagant expenditures exceed the bounds of propriety. These expenditures are immoderate, prodigal, lavish, luxurious, wasteful, grossly excessive and injudicious.”
source
Travel expenses of 13 top personalities of the Iloilo Provincial Government made it in this year’s shortlist of unconscionable and excessive claims.
All disallowed by the Commission On Audit (COA) with full refund of the taxpayer’s money ordered, the list included the governor’s daughter Nielette Tupas Balleza and Capitol lawyer Joenar Pueblo.
Two doctors also made it in the list, Dr. Roberto Castronuevo and Dr. Jeremiah Obañana with Castronuevo even discovered to have tampered the Official Receipts (ORs). Castronuevo and Balleza have both returned the Capitol’s money yet COA in its latest Annual Audit Report (AAR) still identified the duo as amongst the 13 with disallowed travel expenses. It was not clear if with the restitution made the two are now clear of any liabilities.
While expenses for official trips may be charged to the Iloilo Provincial Government, COA noted how limitations are set by law. And with cash advances granted to cover said trips, proper liquidations are likewise required.
Random audit made on the travel of the 13 showed violations ranging from excessive claims to tampering of ORs.
“There are instances when official receipts for hotel accommodation presented are tampered. Confirmation letters inquiring as to the authenticity and validity of the data in said official receipts were sent to the management of the hotel and confirmed official receipts differ from that submitted to support the Liquidation Report. Such act of a public officer is deemed unconscionable and should be properly dealt with by the head of agency,” the COA wrote. “Post-audit of selected vouchers and liquidation reports also reveal excessive claims. Receipts for meals and hotel accommodation presented exceeded the daily limit for such expenses… The travel law clearly states that limits are set for daily expenses (not weekly or monthly).”
As further pointed out by COA, regardless of rank and destination the amount allowed is P800 per day with claims in excess needing special authority. Any amount beyond P800 per day must have a certification from the head of office that the excess is “absolutely necessary in the performance of an assignment and presentation of bills and receipts.”
“We recommend that the Province exercise prudence in granting reimbursements for expenses for out of town travels,” while adding that any and all claims must duly be supported with receipts.
Those with unpaid disallowed travels included Provincial Librarian Noemi Viejon, Mila Layog of the Provincial Cooperative Office, acting Provincial Treasurer Corazon Estelita Beloria, Social Welfare and Development Officer Neneth Pador and Health Office’s Judy Dumayas among others.
As COA pointed out, “unconscionable expenditures” signifies without acknowledge or sense of what is right, reasonable and just and not guided or restrained by conscience. These are unreasonable and immoderate expenses incurred in violation of ethics and morality by one who does not have any feeling of guilt for the violation.”
TNT learned that the questioned Capitol executives were granted authority of P2,500 daily allowance for department heads, P2,000 for assistant department heads and P1,500 for hospital chiefs.
The disbursement vouchers checked though showed meals and incidental expenses as grossly excessive, exorbitant and too lavish.
Said matter was first reported in January this year with the earlier Audit Observation Memorandum (AOM) issued.
For instance, one receipt for one meal of one Capitol executive showed a bill of P2,000. COA was direct with its message then to the governor, “Such can be considered quite excessive for a meal of an individual.”
And there was more.
“Further, two (2) ORs show that personal effects and a laptop accessory are among the expenses reimbursed,” the COA noted.
And more reminders in the AOM to the governor calling his attention to government regulations aimed at preventing excessive and extravagant expenditures.
The ‘travel allowance AOM’ cited Section 164, Article 2 of the Government Accounting and Auditing Manual defining excessive expenditures as “unreasonable expense or expenses incurred at an immoderate quantity or exorbitant price. It also includes expenses which exceed what is usual or proper as well as expenses which are unreasonably high and beyond just measure or amount. They also include expenses in excess of reasonable limits.”
COA likewise reminded Tupas, “the term ‘extravagant expenditures’ signifies those incurred without restraint, judiciousness and economy. Extravagant expenditures exceed the bounds of propriety. These expenditures are immoderate, prodigal, lavish, luxurious, wasteful, grossly excessive and injudicious.”
source
University prexy faces graft for unliquidated P0.56-M cash advances
by Zaff Solmerin / Correspondent
THE president of a government university was ordered charged by the Office of the Ombudsman for violating Article 218 of the Revised Penal Code for his failure to liquidate cash advances amounting to P555,778.90 from an educational study project in 2004.
Ombudsman Merceditas Gutierrez said respondent Eldigario Gonzales is the president of the Western Mindanao State University.
In a 16-page order, Merceditas approved the recommendation of government investigators for the filing of graft charges against Gonzales before the Sandiganbayan based on information gathered from the Commission on Audit (COA).
The case against Gonzales stemmed from an examination conducted by the COA on the expenses of an educational study conducted by the WMSU in 2004.
“Case records are replete with pieces of evidence more than sufficient to support a finding of probable cause, against respondent, for violation of Art. 218 of the RPC, Failure of Accountable Officer to Render Accounts,” Gutierrez said in her order.
In the same order, Gutierrez also directed government prosecutors to file charges against other school officials for various offenses.
Manuel Rebollos, principal of the Manicahan National High School in Zamboanga City, was charged for acts of lasciviousness after Leizel Esona, a teacher, accused him of touching her in a “sexually suggestive way” against her will.
Gutierrez also placed under preventive suspension Wilma Padama, principal, and Noel A. Caballes, physics teacher, both of Burgos National High School in Pangasinan.
The two were charged with grave misconduct after a 16-year-old male student accused Caballes of sexually abusing him and Padama of covering up the incident to avoid criminal prosecution of the offender.
In his complaint, the student claimed that Caballes invited him after their class to proceed to his house to finish a school project.
When the project was finished, Caballes convinced the student to sleep over and sexually abused the latter while he was sleeping.
Padama, on the other hand, allegedly told the student not to report the incident to the police in order to avoid a public scandal, and required him to sign a document to the effect without allowing him to read nor understand the same.
Meanwhile, the Ombudsman also dismissed from the service Ricardo Marfiga, principal of the Masbate National Comprehensive High School (MNCHS) in Pangasinan for misconduct after he was accused of collecting unauthorized fees from students.
In a complaint filed by concerned parents and students of the MNCHS, it was alleged that Marfiga collected fees for use of computers, and sold items that were usually given free to students like test papers; imposed arbitrary fines for late enrollees and latecomers; used the services of the school driver to fetch his wife and children to and from office and school; and allowed cockfighting and taking bets inside the school.
In a two-page decision, the Ombudsman noted that Marfiga himself admitted some of the alleged acts, such as the collection and imposition of fees and having allowed cockfighting inside the campus.
“Complainant’s evidence and respondent’s admission, therefore, are sufficient as constituting substantial evidence,” Gutierrez said.
source
So much money is wasted on unliquidated cash advances! If cash advances were really spent why is it that they can't liquidate them?
THE president of a government university was ordered charged by the Office of the Ombudsman for violating Article 218 of the Revised Penal Code for his failure to liquidate cash advances amounting to P555,778.90 from an educational study project in 2004.
Ombudsman Merceditas Gutierrez said respondent Eldigario Gonzales is the president of the Western Mindanao State University.
In a 16-page order, Merceditas approved the recommendation of government investigators for the filing of graft charges against Gonzales before the Sandiganbayan based on information gathered from the Commission on Audit (COA).
The case against Gonzales stemmed from an examination conducted by the COA on the expenses of an educational study conducted by the WMSU in 2004.
“Case records are replete with pieces of evidence more than sufficient to support a finding of probable cause, against respondent, for violation of Art. 218 of the RPC, Failure of Accountable Officer to Render Accounts,” Gutierrez said in her order.
In the same order, Gutierrez also directed government prosecutors to file charges against other school officials for various offenses.
Manuel Rebollos, principal of the Manicahan National High School in Zamboanga City, was charged for acts of lasciviousness after Leizel Esona, a teacher, accused him of touching her in a “sexually suggestive way” against her will.
Gutierrez also placed under preventive suspension Wilma Padama, principal, and Noel A. Caballes, physics teacher, both of Burgos National High School in Pangasinan.
The two were charged with grave misconduct after a 16-year-old male student accused Caballes of sexually abusing him and Padama of covering up the incident to avoid criminal prosecution of the offender.
In his complaint, the student claimed that Caballes invited him after their class to proceed to his house to finish a school project.
When the project was finished, Caballes convinced the student to sleep over and sexually abused the latter while he was sleeping.
Padama, on the other hand, allegedly told the student not to report the incident to the police in order to avoid a public scandal, and required him to sign a document to the effect without allowing him to read nor understand the same.
Meanwhile, the Ombudsman also dismissed from the service Ricardo Marfiga, principal of the Masbate National Comprehensive High School (MNCHS) in Pangasinan for misconduct after he was accused of collecting unauthorized fees from students.
In a complaint filed by concerned parents and students of the MNCHS, it was alleged that Marfiga collected fees for use of computers, and sold items that were usually given free to students like test papers; imposed arbitrary fines for late enrollees and latecomers; used the services of the school driver to fetch his wife and children to and from office and school; and allowed cockfighting and taking bets inside the school.
In a two-page decision, the Ombudsman noted that Marfiga himself admitted some of the alleged acts, such as the collection and imposition of fees and having allowed cockfighting inside the campus.
“Complainant’s evidence and respondent’s admission, therefore, are sufficient as constituting substantial evidence,” Gutierrez said.
source
So much money is wasted on unliquidated cash advances! If cash advances were really spent why is it that they can't liquidate them?
Auditors identify Lapu budget flaws
By Doris C. Bongcac
VARIOUS projects worth P385 million that were implemented since 2005 have not been turned over to the Lapu Lapu City government.
The Commission on Audit in Central Visayas (COA-7) said delays in the project turn over have “deprived the city of the projected benefits and income that can derived from them.”
“It is recommended that the Chief Executive should follow up the turn over of these priority projects. If the contractor is in default, impose sanctions like liquidated damages and penalties,” auditors said in their report of the city's finances for last year.
The auditors also noted lapses in sourcing funds worth P6 million which the Lapu Lapu City government spent in 2008 on three expenditures.
Among the questioned appropriations were the P2.8 million spent for the city's beautification program, the P2.9 million spent for janitorial supplies and the P391,590 allocated for the Sinulog Grand Festival expenses.
The audit report said the city's beautification program was funded from the P11.6 million released by the Department of Tourism (DOT).
It also noted that Sinulog expenses was charged to the Special Education Fund (SEF) even if the activity “did not fall within the priority expenses (for said appropriation).”
source
Accountable officials concerned should be made answerable for these anomalies!
VARIOUS projects worth P385 million that were implemented since 2005 have not been turned over to the Lapu Lapu City government.
The Commission on Audit in Central Visayas (COA-7) said delays in the project turn over have “deprived the city of the projected benefits and income that can derived from them.”
“It is recommended that the Chief Executive should follow up the turn over of these priority projects. If the contractor is in default, impose sanctions like liquidated damages and penalties,” auditors said in their report of the city's finances for last year.
The auditors also noted lapses in sourcing funds worth P6 million which the Lapu Lapu City government spent in 2008 on three expenditures.
Among the questioned appropriations were the P2.8 million spent for the city's beautification program, the P2.9 million spent for janitorial supplies and the P391,590 allocated for the Sinulog Grand Festival expenses.
The audit report said the city's beautification program was funded from the P11.6 million released by the Department of Tourism (DOT).
It also noted that Sinulog expenses was charged to the Special Education Fund (SEF) even if the activity “did not fall within the priority expenses (for said appropriation).”
source
Accountable officials concerned should be made answerable for these anomalies!
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