COA raps OMB for accounting failures

By BEN R. ROSARIO

A Commission on Audit report scolding the Optical Media Board (OMB) for failing to properly account for billions of pesos worth of seized optical discs and other video equipment appeared to support accusations of corruption leveled by an anti-smuggling agency against certain OMB operatives and officials.

In its audit report of the 2008 financial standing of OMB, COA chided the OMB for repeatedly failing to fully account for the number of supplies, optical discs and equipment seized from suspected film pirates.

The report was submitted by Director Bato Ali of COA’s national government sector audit service in the wake of the corruption scandal triggered by the disappearance of two replicating machines seized by joint operatives of the OMB and the Presidential Anti-Smuggling Group (PASG) in a raid conducted in San Jose del Monte, Quezon City last month. PASG chief Undersecretary

Antonio Villar Jr. earlier sought a congressional inquiry into the incident, saying that certain OMB men were behind the missing replicating machines valued at P100 million. OMB Chairman Edu Manzano, on the other hand, denied the accusations, saying the PASG did not turn over the machines to his men.

The COA report appeared to have sided with Villar with state auditors pointing out that the OMB ignored last year’s audit recommendation that a monthly report of seized pirated discs and other equipment be submitted to the constitutional agency.

“During the year (2008), management failed to submit the required documents to support the receipt and disposal of the confiscated seized inventories and equipment,” auditors said. “This is a reiteration of prior year’s audit observation.”

When informed about the audit observation, Manzano, in a letter to COA last February, explained that a consolidated report of seized discs starting the first quarter of 2008 was made. It revealed that a total 6,007 sacks and 1,305 boxes of pirated optical discs had been seized.

The OMB also reported that a Summary of Enforcement operations from January to December, 2008 showed that the total estimated value of all confiscated machines and discs was estimated at P1,727,253,325.

COA rejected the OMB explanation, saying that the “comparison of the two reports is not possible because of the different ways of reporting the confiscated goods.”

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Proper accounting procedures should be set up by the OMB to properly account confiscated items.