COA Commission Proper issued COA Circular No. 2011-002 dated July 22, 2011 withdrawing selective pre-audit under COA Circular No. 2009-002 and thereby lifts all pre-audit activities presently performed on financial transactions of the national government agencies, government owned and/or controlled corporations and local government units, except those required by existing law.
source
Wednesday, August 17, 2011
Tuesday, August 16, 2011
Gloria Macapagal-Arroyo got P98M advance before bowing out–COA
Former President Gloria Macapagal-Arroyo got an advance of P98.6 million from the Presidential Social Fund (PSF) one month before stepping down from office last year.
This according to Commission on Audit (COA) chief Grace Pulido Tan who appeared at Tuesday’s House committee on appropriations hearing on the proposed COA budget for 2012.
Tan said the advance of P98.6 million, which was released on May 28, 2010, was discovered during an ongoing audit of the PSF. The fund by that time should have been left untouched for her successor, now President Benigno Aquino III.
Tan said the P98.6 million was part of a P345 million remittance by the Philippine Amusement and Gaming Corp. (Pagcor) to the PSF.
She confirmed an earlier claim by Bayan Muna party-list Rep. Neri Colmenares that vouchers for the disbursement of the P345 million to two congressional districts closely linked to Arroyo were issued but later cancelled.
“We have the same figures. We have found the [amount] remitted to the PSF and receipted by the PSF. Part of this, P98.6 million, was taken from the June 2010 PSF. May advance, inadvance na dun. Nagalaw din po (There was an advance, it was taken from that. It had been touched),” Tan said.
In a previous House hearing, Colmenares said the P345 million was intended for two “lucky” congressional districts—the second district of Pampanga then represented by Mikey Arroyo and the second district of Camarines Sur represented by Dato Arroyo. Both congressmen are sons of the then president.
http://www.blogger.com/img/blank.gif
Tan said the COA was following the trail of the P345 million.
She said its disbursement could have only come from Malacañang since it had received Pagcor’s remittance.
“That’s something we are in the process of auditing. 2010 na yan medyo nahuhuli pa po (It happened in 2010 and we’re running a little late),” she said.
At the same time, the COA announced that it was keeping its policy of pre-auditing government projects but only for some agencies like the Armed Forces of the Philippines and the Philippine National Police.
source
This according to Commission on Audit (COA) chief Grace Pulido Tan who appeared at Tuesday’s House committee on appropriations hearing on the proposed COA budget for 2012.
Tan said the advance of P98.6 million, which was released on May 28, 2010, was discovered during an ongoing audit of the PSF. The fund by that time should have been left untouched for her successor, now President Benigno Aquino III.
Tan said the P98.6 million was part of a P345 million remittance by the Philippine Amusement and Gaming Corp. (Pagcor) to the PSF.
She confirmed an earlier claim by Bayan Muna party-list Rep. Neri Colmenares that vouchers for the disbursement of the P345 million to two congressional districts closely linked to Arroyo were issued but later cancelled.
“We have the same figures. We have found the [amount] remitted to the PSF and receipted by the PSF. Part of this, P98.6 million, was taken from the June 2010 PSF. May advance, inadvance na dun. Nagalaw din po (There was an advance, it was taken from that. It had been touched),” Tan said.
In a previous House hearing, Colmenares said the P345 million was intended for two “lucky” congressional districts—the second district of Pampanga then represented by Mikey Arroyo and the second district of Camarines Sur represented by Dato Arroyo. Both congressmen are sons of the then president.
http://www.blogger.com/img/blank.gif
Tan said the COA was following the trail of the P345 million.
She said its disbursement could have only come from Malacañang since it had received Pagcor’s remittance.
“That’s something we are in the process of auditing. 2010 na yan medyo nahuhuli pa po (It happened in 2010 and we’re running a little late),” she said.
At the same time, the COA announced that it was keeping its policy of pre-auditing government projects but only for some agencies like the Armed Forces of the Philippines and the Philippine National Police.
source
Wednesday, August 10, 2011
MAPPING A CULTURE OF INTEGRITY
Management Association of the Philippines
Manila Peninsula, Rigodon Ballroom
26 July 2011
by Ma. Gracia M. Pulido Tan
Chairperson, Commission on Audit
Thank you most sincerely for inviting me to share with you today my thoughts and
aspirations on a truly challenging but very timely topic, one that strikes at the very
core of what I have long set out to do with my very life as a daughter, sister, wife
and mother; a puny creature of God; an ordinary citizen; a professional; and now,
as public servant once again.
On my first day of office, I expressly declared my bottomline, and that is to bring to
our countrymen the COA that our Constitution has meant it to be, and properly
deliver to them their constitutionally mandated right to a full and proper accounting
of public funds which, after all, is theirs, yours and mine.
I thus laid out our immediate tasks:
1. Revisit our mandate and assess our directions;
2. Evaluate our organizational structure and management and business
processes and undertake all necessary reforms to institute best practice for
efficiency and effectiveness in carrying out our tasks and strengthening our
independence;
3. Continuously upgrade our capabilities, specially in the areas of forensic
accounting, fraud audit, and properly documenting our findings so they will
stand in the courts of law;
4. Engage citizen participation in the audit process and keep them informed of
the workings of the Commission within the bounds of due process and
confidentiality requirements, and,
5. Most of all, fastidiously work on ourselves and strive to grow each day in
professionalism, patriotism and integrity.
This is my roadmap at the Commission. I hope you will agree with me that it is a
roadmap to a culture of integrity.
I firmly believe that this is the only way to go, specially in light of the crucial role of
the COA in the fight against graft and corruption and in restoring credibility to and
confidence in our government which has been inflicted with deep wounds of untold
excesses and brazen raids on the treasury.
You and I know these all too well, as practically each day, the media carries banner
stories of this sad and sordid state of affairs.
I hope you will also agree with me that sound management policies and practices are
imperative in delivering on these tasks. I must confess, however, that apart from my
degree in business administration and accountancy, I have had no other formal
education in management.
But I have laid my vision, and draw the audacity to move and shake from my long
years of law practice and intermittent stints in government and international
consultancies, where I have had the privilege of entering the corridors of decision
makers and managers at the highest levels, and which honed my instincts to a great
degree.
Most of all, I derive strength from my faith in God, whom I firmly believe directed
me to this new chapter of my life and therefore equips me with the moral courage
for the job.
So how have we done at the COA in the three months that I have been at the helm?
Let me share with you some highlights.
Mandate, Organization, and Processes
A cardinal rule for me is that structures and practices that have a high
potential for compromising integrity must go.
Pre-audit
I am pleased to inform you that last week, we at the Commission Proper
resolved to do away with pre-audit.
While its intentions were laudable, its implementation courted some dangers.
For one, its very nature and purpose - which is essentially an approval process of a
transaction before it can be carried out - gave rise to myriad reports that a quid pro
quo between the agency and our auditors take place every now and then, for without
COA’s approval, the transaction cannot proceed.
On the other hand, it has placed a big burden on auditors who are genuinely
cautious and thorough, and thereby bide for time to make a decision, resulting
however in delays in certain government projects and consequent penalties. In this
sense, the COA has been perceived as an “obstructionist” or, at the other end of the
spectrum, “nagpapapresyo.” So either way, damn if we do, damn if we don’t.
Pre-audit also partakes more of a management function, a task that could
compromise the independence and attest function of the COA and estop us from
revisiting or changing position where circumstances would otherwise warrant.
Pre-audit has also taken a considerable portion of our auditors’ time that
would otherwise have been devoted to meticulous regular audits.
Our review of pre-audit reveals that in the almost two-year period that it has
been in place, more than 500,000 transactions were pre-audited, involving an
aggregate value of more than PHP 535B. 87% of these were given “outright
approval;” 11% were “approved after compliance with auditor requirements”, and
only about 1% were denied.
These figures would indicate that for all the effort, we managed to “save”
government of about PHP 5.35B only. Surely, there must be less invasive and
burdensome ways by which to achieve the same result, if not better. The very high
percentage of outright approvals would also show that the concerned agencies may
have been generally fiscally responsible, after all.
Accordingly, except in agencies whose internal control systems are weak or
perhaps, even non-existent, pre-audit must go. We shall issue and publish a Circular
to this effect shortly, as soon as we finalize the transitory provisions and other
details.
Residency Audit
As you know, we use the residency audit approach, where audit teams hold
office in their assigned agencies. This is designed to facilitate the ongoing review of
the agency’s operations, programs and activities, specially because we audit them
yearly.
You are also well aware of the consequent problems we have had in this
regard. Remember the Garcia affair?
While the COA has a residency rule of three years, this has not been
implemented consistently. One consideration, I was told, is that a good level of
familiarity with the operations of the agency is required for a good audit. But wasn’t
it familiarity that was precisely at the root of the Garcia affair?
The residency approach is definitely under high-priority and urgent review.
It is taking a little longer than pre-audit, though, because we have about 7,000
people on the field. Initial findings – and the increasing number of complaints that
we have received – strongly indicate, however, that we may have to consider doing
away completely with this approach, and instead adopt a visitorial system.
This would mean recalling every resident auditor to home office, and
scheduling field work from time to time, pretty much how external auditors in the
private sector do. Of course, there are logistical concerns and we may just pilot
some agencies first. To test the waters, we have resolved to adopt the visitorial audit
in one agency, and we are now in the process of fleshing out the details.
Meantime, we issued COA Circular No. 2011-001 specifying the items all
heads and concerned officials of all our auditees are legally obliged to provide our
resident audit teams. This Circular also reminds them of the prohibition against
paying our personnel any honoraria, allowance, bonus or other emoluments. COA
Circular No. 2011-001 was published on July 13, 2011 in the Inquirer, Philippine
Star and Business World.
We are also reviewing the residency period of our auditors in their present
assignments so we can forthwith rotate those who are clearly overstaying.
Organization and Processes
Under the COA organizational structure (adopted in 2008), audit
observation memos and reports are signed and released by the Supervising Auditor.
Notices of disallowance, suspension or charge are also issued by the Supervising
Auditor, thus making an audit team virtually autonomous in its assigned agency.
This has resulted in the inconsistent application of compliance standards and
interpretation of transactions among agencies. One audit team may find an expense
irregular in its agency, but the audit team in another agency may find a similar
expense regular.
The general perception created is that the “lenient” auditor may be on the
take. On the other hand, the agency with the “strict” auditor would request
replacement. Imagine the delicate balancing act we have to make.
Autonomy has also resulted in what I would call a “fragmentation” of
transactions that involve, or cut across, several units or agencies. Either the “money
trail” is not followed to its conclusion, or the multi-agency projects are not evaluated
as a whole, but only in parts, resulting in different interpretation or characterization
of the project because each audit group would only be looking at the part that
involves their agency.
As an interim measure, I have therefore asked that all audit teams of
agencies involved in a multi-agency project or transaction coordinate closely and
work together to have a common understanding and appreciation of the entire
project and its component parts – from origination, stages of development,
approval, financing and implementation; validate their observations with one
another to ensure consistency; and issue one special consolidated report for a better
understanding of the various stakeholders.
A good example would be the MRT, which involves not only the DOTC but
the NEDA, DOF, BTr, GFI’s and GOCCs. Another would be the Malampaya
Funds, which not only involve the DOE, but all agencies which have received them
and funded projects out of the proceeds. Call it a package audit, if you will, and I
hope it would not only provide a complete picture but also serve as a check and
balance among our auditors.
Capacity Building
Another sound management policy, I believe, that will promote integrity is to
bring out the best in our human resource and build their confidence in themselves
and in their professional capabilities.
International Linkages
I am pleased to inform you that our auditors are among the world’s best.
Presently, we are the External Auditor of the Food and Agriculture Organization
based in Rome. Last May 19, in contention with heavyweights - Germany, France,
Spain and Malaysia, we were elected External Auditor of the World Health
Organization in Geneva. We are now working on our bid to be the External Auditor
of the International Atomic Energy Agency based in Vienna
For about 20 years until 2008, we were in the Panel of Auditors of the United
Nations, and maintained an office for the purpose in New York. We intend to get
back in 2014 and reclaim the honor of being the premier supreme audit institution
in Asia, if not the world.
Why all these efforts to take on overseas assignments, you may ask? Is there
not enough work at home? There is definitely more than enough, specially at these
crucial times, when we are re-tooling, as it were, and re-engineering our business
processes.
But we need international exposure to build confidence and pride among our
auditors, and encourage everyone in the organization to do her or his best at home
so she or he can take a shot at an international experience. It opens us up to best
practice and knowledge sharing . It is the best training program and impetus for
continuous professional development. And if one takes professionalism seriously,
one will have no qualms about living out a culture of integrity.
Fraud Audit and Forensic Accounting
Our focus now is to develop greater capacity in fraud audit and forensic
accounting.
The complexity of financial transactions, rapid advances in technology, and
the ever-changing legal and regulatory landscape require so. Given the highly
trained and handsomely paid think tanks and craftsmen in many government units
and agencies today, it is imperative that we be at par, if not a step ahead.
I am sure our staff will appreciate the attention we are putting into this
highly specialized training, and will respond with a commitment to apply it without
fear or favor.
Prosecution and Evidence
It has certainly been a disappointment that big cases where we thought we
had the “smoking gun” have not prospered, not because they were not meritorious
but because of technical or procedural errors and/or on evidentiary grounds.
It is therefore important to encourage our auditors so they will not lose heart.
Obviously, they need to see that their hard work pays off.
Hence, we shall strengthen and intensify cooperation and coordination with
the Ombudsman. The appointment of Justice Carpio Morales, who is well known
for her probity and no-nonsense stance, is certainly most welcome, and we eagerly
look forward to working with her.
We shall provide more intensive training, preferably from well known legal
experts with a solid track record in successfully prosecuting graft cases, that our
auditors may be better equipped and further inspired. I am looking at tapping the
local legal community for this much needed assistance and already, several
volunteers have come forward.
Citizens’ Participation
This is a priority program, founded on the premise that public accountability
can prosper only with a vigilant and involved citizenry.
Accordingly, we have established a text hotline directly under my office
where they can call in complaints or concerns. This, of course, is in addition to
regular mail, fax and e-mail. The hotline and email facilities are on the COA
website.
We have also taken measures to expedite the uploading of all audit reports in
our website so that any one interested can readily access them.
Citizens’ participation is not to be merely confined to complaints. We are in
the process of developing a comprehensive program that will integrate people’s
organizations, the media, the clergy and business chambers, among others, in
various aspects of the audit process: determining audit focus areas, validation of
documents, gathering information from the field, verifying the physical existence of
projects, checking on our auditors and assisting in their security.
We will have information campaign and training on procurement rules,
implementation of budgets, disbursements, basic accounting, and understanding
financial reports. It is a tall order but we are committed to see it through. Target
launch of the citizens’ participation program is by this year-end.
This idea came when I was discerning whether or not to accept the position. I
was so taken by it, and heavily influenced my decision to accept. I was pleasantly
surprised that shortly into the job, I received an invitation from the INTOSAI to
attend a Symposium in Vienna, precisely on the topic of “Effective Practices of
Cooperation between SAIs and Citizens to Enhance Public Accountability.” Little
did I know that citizens’ participation has become a hot, contemporary issue
elsewhere in the world, and I took that to mean that yes, we are on the right track.
Growing in Professionalism, Patriotism and Integrity
This has been the most challenging “deliverable” so far. Indeed, how does
one grow in professionalism, patriotism and integrity at this stage of life?
Surely, I have not quibbled on letting the ax fall where it must. I have not
hesitated to authorize the administrative investigation of those who have been prima
facie found to have acted improperly, and to file appropriate cases in court where
warranted.
These are hard, painful decisions, but these I must do in order to instill
professionalism, patriotism and integrity at the COA. I am fully aware that these
are the hazards of my trade.
On the other hand, I have asked our Human Resources to come up with a
hiring and recruitment program for fresh graduates from state universities and
colleges to join our force.
We need at least 1500 accountants, lawyers, IT personnel, engineers and
other technical professionals by next year, not only because of our intensified work
program but to address the rapidly aging population of thehttp://www.blogger.com/img/blank.gif COA. I believe that it is
best to work on the young, and appeal to their idealism and patriotism.
A culture of integrity is truly a formidable and inclusivhttp://www.blogger.com/img/blank.gife process. It requires
the active cooperation and involvement of all stakeholders. Each of them must want
it, and accept and own their respective roles in both the vision and the process. The
ultimate responsibility of the leader is to lead by example. Mapping a culture of
integrity therefore starts with him.
I can only hope that with what we have laid out to do and have already
worked on, we have set the tone and demonstrated that change can happen and it
starts from within.
I can only pray - and I ask you to pray for me and the COA, as well - that I
will continue to have the moral strength to carry on.
source
Manila Peninsula, Rigodon Ballroom
26 July 2011
by Ma. Gracia M. Pulido Tan
Chairperson, Commission on Audit
Thank you most sincerely for inviting me to share with you today my thoughts and
aspirations on a truly challenging but very timely topic, one that strikes at the very
core of what I have long set out to do with my very life as a daughter, sister, wife
and mother; a puny creature of God; an ordinary citizen; a professional; and now,
as public servant once again.
On my first day of office, I expressly declared my bottomline, and that is to bring to
our countrymen the COA that our Constitution has meant it to be, and properly
deliver to them their constitutionally mandated right to a full and proper accounting
of public funds which, after all, is theirs, yours and mine.
I thus laid out our immediate tasks:
1. Revisit our mandate and assess our directions;
2. Evaluate our organizational structure and management and business
processes and undertake all necessary reforms to institute best practice for
efficiency and effectiveness in carrying out our tasks and strengthening our
independence;
3. Continuously upgrade our capabilities, specially in the areas of forensic
accounting, fraud audit, and properly documenting our findings so they will
stand in the courts of law;
4. Engage citizen participation in the audit process and keep them informed of
the workings of the Commission within the bounds of due process and
confidentiality requirements, and,
5. Most of all, fastidiously work on ourselves and strive to grow each day in
professionalism, patriotism and integrity.
This is my roadmap at the Commission. I hope you will agree with me that it is a
roadmap to a culture of integrity.
I firmly believe that this is the only way to go, specially in light of the crucial role of
the COA in the fight against graft and corruption and in restoring credibility to and
confidence in our government which has been inflicted with deep wounds of untold
excesses and brazen raids on the treasury.
You and I know these all too well, as practically each day, the media carries banner
stories of this sad and sordid state of affairs.
I hope you will also agree with me that sound management policies and practices are
imperative in delivering on these tasks. I must confess, however, that apart from my
degree in business administration and accountancy, I have had no other formal
education in management.
But I have laid my vision, and draw the audacity to move and shake from my long
years of law practice and intermittent stints in government and international
consultancies, where I have had the privilege of entering the corridors of decision
makers and managers at the highest levels, and which honed my instincts to a great
degree.
Most of all, I derive strength from my faith in God, whom I firmly believe directed
me to this new chapter of my life and therefore equips me with the moral courage
for the job.
So how have we done at the COA in the three months that I have been at the helm?
Let me share with you some highlights.
Mandate, Organization, and Processes
A cardinal rule for me is that structures and practices that have a high
potential for compromising integrity must go.
Pre-audit
I am pleased to inform you that last week, we at the Commission Proper
resolved to do away with pre-audit.
While its intentions were laudable, its implementation courted some dangers.
For one, its very nature and purpose - which is essentially an approval process of a
transaction before it can be carried out - gave rise to myriad reports that a quid pro
quo between the agency and our auditors take place every now and then, for without
COA’s approval, the transaction cannot proceed.
On the other hand, it has placed a big burden on auditors who are genuinely
cautious and thorough, and thereby bide for time to make a decision, resulting
however in delays in certain government projects and consequent penalties. In this
sense, the COA has been perceived as an “obstructionist” or, at the other end of the
spectrum, “nagpapapresyo.” So either way, damn if we do, damn if we don’t.
Pre-audit also partakes more of a management function, a task that could
compromise the independence and attest function of the COA and estop us from
revisiting or changing position where circumstances would otherwise warrant.
Pre-audit has also taken a considerable portion of our auditors’ time that
would otherwise have been devoted to meticulous regular audits.
Our review of pre-audit reveals that in the almost two-year period that it has
been in place, more than 500,000 transactions were pre-audited, involving an
aggregate value of more than PHP 535B. 87% of these were given “outright
approval;” 11% were “approved after compliance with auditor requirements”, and
only about 1% were denied.
These figures would indicate that for all the effort, we managed to “save”
government of about PHP 5.35B only. Surely, there must be less invasive and
burdensome ways by which to achieve the same result, if not better. The very high
percentage of outright approvals would also show that the concerned agencies may
have been generally fiscally responsible, after all.
Accordingly, except in agencies whose internal control systems are weak or
perhaps, even non-existent, pre-audit must go. We shall issue and publish a Circular
to this effect shortly, as soon as we finalize the transitory provisions and other
details.
Residency Audit
As you know, we use the residency audit approach, where audit teams hold
office in their assigned agencies. This is designed to facilitate the ongoing review of
the agency’s operations, programs and activities, specially because we audit them
yearly.
You are also well aware of the consequent problems we have had in this
regard. Remember the Garcia affair?
While the COA has a residency rule of three years, this has not been
implemented consistently. One consideration, I was told, is that a good level of
familiarity with the operations of the agency is required for a good audit. But wasn’t
it familiarity that was precisely at the root of the Garcia affair?
The residency approach is definitely under high-priority and urgent review.
It is taking a little longer than pre-audit, though, because we have about 7,000
people on the field. Initial findings – and the increasing number of complaints that
we have received – strongly indicate, however, that we may have to consider doing
away completely with this approach, and instead adopt a visitorial system.
This would mean recalling every resident auditor to home office, and
scheduling field work from time to time, pretty much how external auditors in the
private sector do. Of course, there are logistical concerns and we may just pilot
some agencies first. To test the waters, we have resolved to adopt the visitorial audit
in one agency, and we are now in the process of fleshing out the details.
Meantime, we issued COA Circular No. 2011-001 specifying the items all
heads and concerned officials of all our auditees are legally obliged to provide our
resident audit teams. This Circular also reminds them of the prohibition against
paying our personnel any honoraria, allowance, bonus or other emoluments. COA
Circular No. 2011-001 was published on July 13, 2011 in the Inquirer, Philippine
Star and Business World.
We are also reviewing the residency period of our auditors in their present
assignments so we can forthwith rotate those who are clearly overstaying.
Organization and Processes
Under the COA organizational structure (adopted in 2008), audit
observation memos and reports are signed and released by the Supervising Auditor.
Notices of disallowance, suspension or charge are also issued by the Supervising
Auditor, thus making an audit team virtually autonomous in its assigned agency.
This has resulted in the inconsistent application of compliance standards and
interpretation of transactions among agencies. One audit team may find an expense
irregular in its agency, but the audit team in another agency may find a similar
expense regular.
The general perception created is that the “lenient” auditor may be on the
take. On the other hand, the agency with the “strict” auditor would request
replacement. Imagine the delicate balancing act we have to make.
Autonomy has also resulted in what I would call a “fragmentation” of
transactions that involve, or cut across, several units or agencies. Either the “money
trail” is not followed to its conclusion, or the multi-agency projects are not evaluated
as a whole, but only in parts, resulting in different interpretation or characterization
of the project because each audit group would only be looking at the part that
involves their agency.
As an interim measure, I have therefore asked that all audit teams of
agencies involved in a multi-agency project or transaction coordinate closely and
work together to have a common understanding and appreciation of the entire
project and its component parts – from origination, stages of development,
approval, financing and implementation; validate their observations with one
another to ensure consistency; and issue one special consolidated report for a better
understanding of the various stakeholders.
A good example would be the MRT, which involves not only the DOTC but
the NEDA, DOF, BTr, GFI’s and GOCCs. Another would be the Malampaya
Funds, which not only involve the DOE, but all agencies which have received them
and funded projects out of the proceeds. Call it a package audit, if you will, and I
hope it would not only provide a complete picture but also serve as a check and
balance among our auditors.
Capacity Building
Another sound management policy, I believe, that will promote integrity is to
bring out the best in our human resource and build their confidence in themselves
and in their professional capabilities.
International Linkages
I am pleased to inform you that our auditors are among the world’s best.
Presently, we are the External Auditor of the Food and Agriculture Organization
based in Rome. Last May 19, in contention with heavyweights - Germany, France,
Spain and Malaysia, we were elected External Auditor of the World Health
Organization in Geneva. We are now working on our bid to be the External Auditor
of the International Atomic Energy Agency based in Vienna
For about 20 years until 2008, we were in the Panel of Auditors of the United
Nations, and maintained an office for the purpose in New York. We intend to get
back in 2014 and reclaim the honor of being the premier supreme audit institution
in Asia, if not the world.
Why all these efforts to take on overseas assignments, you may ask? Is there
not enough work at home? There is definitely more than enough, specially at these
crucial times, when we are re-tooling, as it were, and re-engineering our business
processes.
But we need international exposure to build confidence and pride among our
auditors, and encourage everyone in the organization to do her or his best at home
so she or he can take a shot at an international experience. It opens us up to best
practice and knowledge sharing . It is the best training program and impetus for
continuous professional development. And if one takes professionalism seriously,
one will have no qualms about living out a culture of integrity.
Fraud Audit and Forensic Accounting
Our focus now is to develop greater capacity in fraud audit and forensic
accounting.
The complexity of financial transactions, rapid advances in technology, and
the ever-changing legal and regulatory landscape require so. Given the highly
trained and handsomely paid think tanks and craftsmen in many government units
and agencies today, it is imperative that we be at par, if not a step ahead.
I am sure our staff will appreciate the attention we are putting into this
highly specialized training, and will respond with a commitment to apply it without
fear or favor.
Prosecution and Evidence
It has certainly been a disappointment that big cases where we thought we
had the “smoking gun” have not prospered, not because they were not meritorious
but because of technical or procedural errors and/or on evidentiary grounds.
It is therefore important to encourage our auditors so they will not lose heart.
Obviously, they need to see that their hard work pays off.
Hence, we shall strengthen and intensify cooperation and coordination with
the Ombudsman. The appointment of Justice Carpio Morales, who is well known
for her probity and no-nonsense stance, is certainly most welcome, and we eagerly
look forward to working with her.
We shall provide more intensive training, preferably from well known legal
experts with a solid track record in successfully prosecuting graft cases, that our
auditors may be better equipped and further inspired. I am looking at tapping the
local legal community for this much needed assistance and already, several
volunteers have come forward.
Citizens’ Participation
This is a priority program, founded on the premise that public accountability
can prosper only with a vigilant and involved citizenry.
Accordingly, we have established a text hotline directly under my office
where they can call in complaints or concerns. This, of course, is in addition to
regular mail, fax and e-mail. The hotline and email facilities are on the COA
website.
We have also taken measures to expedite the uploading of all audit reports in
our website so that any one interested can readily access them.
Citizens’ participation is not to be merely confined to complaints. We are in
the process of developing a comprehensive program that will integrate people’s
organizations, the media, the clergy and business chambers, among others, in
various aspects of the audit process: determining audit focus areas, validation of
documents, gathering information from the field, verifying the physical existence of
projects, checking on our auditors and assisting in their security.
We will have information campaign and training on procurement rules,
implementation of budgets, disbursements, basic accounting, and understanding
financial reports. It is a tall order but we are committed to see it through. Target
launch of the citizens’ participation program is by this year-end.
This idea came when I was discerning whether or not to accept the position. I
was so taken by it, and heavily influenced my decision to accept. I was pleasantly
surprised that shortly into the job, I received an invitation from the INTOSAI to
attend a Symposium in Vienna, precisely on the topic of “Effective Practices of
Cooperation between SAIs and Citizens to Enhance Public Accountability.” Little
did I know that citizens’ participation has become a hot, contemporary issue
elsewhere in the world, and I took that to mean that yes, we are on the right track.
Growing in Professionalism, Patriotism and Integrity
This has been the most challenging “deliverable” so far. Indeed, how does
one grow in professionalism, patriotism and integrity at this stage of life?
Surely, I have not quibbled on letting the ax fall where it must. I have not
hesitated to authorize the administrative investigation of those who have been prima
facie found to have acted improperly, and to file appropriate cases in court where
warranted.
These are hard, painful decisions, but these I must do in order to instill
professionalism, patriotism and integrity at the COA. I am fully aware that these
are the hazards of my trade.
On the other hand, I have asked our Human Resources to come up with a
hiring and recruitment program for fresh graduates from state universities and
colleges to join our force.
We need at least 1500 accountants, lawyers, IT personnel, engineers and
other technical professionals by next year, not only because of our intensified work
program but to address the rapidly aging population of thehttp://www.blogger.com/img/blank.gif COA. I believe that it is
best to work on the young, and appeal to their idealism and patriotism.
A culture of integrity is truly a formidable and inclusivhttp://www.blogger.com/img/blank.gife process. It requires
the active cooperation and involvement of all stakeholders. Each of them must want
it, and accept and own their respective roles in both the vision and the process. The
ultimate responsibility of the leader is to lead by example. Mapping a culture of
integrity therefore starts with him.
I can only hope that with what we have laid out to do and have already
worked on, we have set the tone and demonstrated that change can happen and it
starts from within.
I can only pray - and I ask you to pray for me and the COA, as well - that I
will continue to have the moral strength to carry on.
source
Message of COA Chairperson Maria Gracia Pulido-Tan for COA personnel
18 April 2011
My dear fellow Commissioners and Auditors,
Administrative and Support Staff, Friends:
Good morning. Thank you very much for your warm welcome.
Today marks the beginning of an entirely new chapter of my life, one that
never crossed my mind until that fateful day about a month ago today
when I received a totally unexpected call. I had served government
before, and I thought that I had “given back,” so to speak. After the brief
stint, I chose to slip into a rather comfortable life doing what I missed
while I was in active law practice, namely, spending more and better
quality time with my children and involving myself in various socio-religious
work and civil society groups, while doing consultancies in
between. It was the most quiet, relaxed and practically stress-free six
years of my adult life, one that I thought was mine to keep forever.
But God has other plans, and here I am.
Be assured that I accepted this position for no other reason than my
conviction that this is God’s will for me at this time of my life. I have
no desire for power, position, fame and riches. I am here only to do my
bit of bringing to our countrymen the COA that out Constitution has
meant it to be, and I will discharge my responsibilities with the highest
degree of professionalism, integrity and competence. I assume this solemn task for God
and country, and I ask for nothing from you other than your support and cooperation in
delivering to our people their constitutionally mandated right to full and proper
accounting of public funds which, after all, is theirs, yours and mine.
In the pursuit of this task, we will be relentless and bold. We shall not be daunted nor
shall we be cowed by any force that will seduce us to silence or any suppression of the
truth. These are opportune times, when COA has leaped into the consciousness of our
people and showed them the immense responsibility it carries to hold public servants
accountable, thanks to the courage and immeasurable capacity for self sacrifice of
Commissioner Heidi Mendoza, and all the other valiant men and women of the
Commission who have put God and Country above all. We cannot, and should not, falter
now. In the words of Suetonius in Deified Julius, “The die is cast,” and so “let us march
on, and go wherever the tokens of the gods and the provocations of our enemies call us.”
We will therefore do all that is incumbent upon us, and exercise them within the
constitutional and legal powers vested in the Commission. We will all revisit our
mandate and attune ourselves to it again, lest we have forgotten. We will evaluate our
organizational structure and management and business processes and undertake all
necessary reforms to institute best practice for efficiency and effectiveness in carrying out
our tasks and strengthening our independence.
In this regard, I will count on the
support specially of Commissioner
Espino, our “man of action,” who
has been your anchor and guide for
the last so many years. We will
continuously upgrade our
capabilities and build capacity,
specially in the areas of forensic
accounting, fraud audit, and
properly documenting our findings
so they will stand in the courts of
law. We will engage citizen
participation and keep them
informed of the workings of the
Commission within the bounds of due process and confidentiality requirements. Most of
all, we will fastidiously work on ourselves and strive to grow each day in
professionalism, patriotism and integrity.
The task ahead is certainly not for the fainthearted, but let us all take comfort in ourhttp://www.blogger.com/img/blank.gif
Lord’s promise that whom He calls, He will anoint and equip for battle.
Ladies and gentlemen of the COA, we have all been called; it is no accident of
circumstance that you have all chosen to serve in this institution. Let this be our highest
reward and constant source of strength. May we not forget that we are but pilgrims on
this earth and that we will pass this way only once, so whatever good we can do, let us do
it now. Fame, power and fortune will surely pass, but the legacy of an honest and
competent public service will live forever.
Again, my sincerest thanks for your warm welcome, and for this singular privilege of
leading the COA at these crucial times of our country’s history. Now, the real task
begins.
source
My dear fellow Commissioners and Auditors,
Administrative and Support Staff, Friends:
Good morning. Thank you very much for your warm welcome.
Today marks the beginning of an entirely new chapter of my life, one that
never crossed my mind until that fateful day about a month ago today
when I received a totally unexpected call. I had served government
before, and I thought that I had “given back,” so to speak. After the brief
stint, I chose to slip into a rather comfortable life doing what I missed
while I was in active law practice, namely, spending more and better
quality time with my children and involving myself in various socio-religious
work and civil society groups, while doing consultancies in
between. It was the most quiet, relaxed and practically stress-free six
years of my adult life, one that I thought was mine to keep forever.
But God has other plans, and here I am.
Be assured that I accepted this position for no other reason than my
conviction that this is God’s will for me at this time of my life. I have
no desire for power, position, fame and riches. I am here only to do my
bit of bringing to our countrymen the COA that out Constitution has
meant it to be, and I will discharge my responsibilities with the highest
degree of professionalism, integrity and competence. I assume this solemn task for God
and country, and I ask for nothing from you other than your support and cooperation in
delivering to our people their constitutionally mandated right to full and proper
accounting of public funds which, after all, is theirs, yours and mine.
In the pursuit of this task, we will be relentless and bold. We shall not be daunted nor
shall we be cowed by any force that will seduce us to silence or any suppression of the
truth. These are opportune times, when COA has leaped into the consciousness of our
people and showed them the immense responsibility it carries to hold public servants
accountable, thanks to the courage and immeasurable capacity for self sacrifice of
Commissioner Heidi Mendoza, and all the other valiant men and women of the
Commission who have put God and Country above all. We cannot, and should not, falter
now. In the words of Suetonius in Deified Julius, “The die is cast,” and so “let us march
on, and go wherever the tokens of the gods and the provocations of our enemies call us.”
We will therefore do all that is incumbent upon us, and exercise them within the
constitutional and legal powers vested in the Commission. We will all revisit our
mandate and attune ourselves to it again, lest we have forgotten. We will evaluate our
organizational structure and management and business processes and undertake all
necessary reforms to institute best practice for efficiency and effectiveness in carrying out
our tasks and strengthening our independence.
In this regard, I will count on the
support specially of Commissioner
Espino, our “man of action,” who
has been your anchor and guide for
the last so many years. We will
continuously upgrade our
capabilities and build capacity,
specially in the areas of forensic
accounting, fraud audit, and
properly documenting our findings
so they will stand in the courts of
law. We will engage citizen
participation and keep them
informed of the workings of the
Commission within the bounds of due process and confidentiality requirements. Most of
all, we will fastidiously work on ourselves and strive to grow each day in
professionalism, patriotism and integrity.
The task ahead is certainly not for the fainthearted, but let us all take comfort in ourhttp://www.blogger.com/img/blank.gif
Lord’s promise that whom He calls, He will anoint and equip for battle.
Ladies and gentlemen of the COA, we have all been called; it is no accident of
circumstance that you have all chosen to serve in this institution. Let this be our highest
reward and constant source of strength. May we not forget that we are but pilgrims on
this earth and that we will pass this way only once, so whatever good we can do, let us do
it now. Fame, power and fortune will surely pass, but the legacy of an honest and
competent public service will live forever.
Again, my sincerest thanks for your warm welcome, and for this singular privilege of
leading the COA at these crucial times of our country’s history. Now, the real task
begins.
source
Wednesday, July 27, 2011
New COA chief seeks sweeping reforms
by David Dizon, abs-cbnNEWS.com
Posted at 05/05/2011
MANILA, Philippines - Commission on Audit (COA) chairman Ma. Gracia Pulido Tan on Thursday outlined her plans for the agency including sweeping reforms on how the COA conducts its audits.
Among the reforms being lined up by Tan are a review of the capacities and specialization requirements of resident auditors and the secondments of auditors to posts outside the country.
Tan said one of the major complaints against some COA auditors is the residency of auditors to choice government agencies, which allegedly leads to abuse.
She noted that some auditors such as former Intelligence Service of the Armed Forces of the Philippines (ISAFP) resident auditor Divina Cabrera are accused of staying at just one post for 10 years.
Cabrera has been accused of pocketing 2% of all intelligence contracts.
"We are going to review policy on residency of auditors kasi di ba ang dami mga complaints. Si auditor na ganito, 10 years na...Offhand, that's not good. Staying in an agency for so long is not good," Tan said.
The COA chief said Cabrera is under investigation after a complaint was filed about her extended stay in ISAFP.
"If there is sufficient lead to go on, for administrative investigation, then we can do that. My understanding is may complaint na naka-file. They can work until they are suspended. We do have a process. I don't want to forget that," she said.
Tan said she will not recommend a lifestyle check of auditors just yet since she believes that 95% of COA employees are dedicated to their work.
She said she asked COA's Human Resources Department to do an inventory of the agency's 8,500-plus employees including resident auditors.
She said she had received reports that at least one resident auditor has a secondment to New York City even though there is no ongoing audit in there.
"I want to know why they are there. If I cannot rationalize, they would have to come back," she said.
Auditing intel funds
Tan said COA would also like a review on the rules of audit for military intelligence funds especially since 80% of the expenses are only supported by a certification from the responsible officer. The theft of military intel funds was recently investigated in congressional investigations this year.
"Wala details. I understand the very nature of the intel funds has national security issues. Gusto ko ma-review yun kung ano pwede namin gawin sa audit that will be a little more substantive. Kasi kung ganun, parang clearing house lang kami...Ano limits ng confidentiality? Anu pwede i-detalye ng kaunti? Di naman pwede 80% puro confidential," she said.
She said the COA will also ensure that proper audit techniques will be conducted on projects of the Department of Public Works and Highways, considered one of the prime sources of corruption in government.
"Kung magbibilang ng pako, magbibilang ng pako. There are audit techniques maski sa private auditors hindi lahat tintignan, may sampling. The selection of a sample is also scientific so it will be representative. Pag may makita ka sa sample mo umabot ng 90% clean , clean na yan," she said.
'Heidi a big help'
Tan revealed she did not aspire for the top COA post but was prevailed upon to accept it by one of the Cabinet members.http://www.blogger.com/img/blank.gif
She said the appointment of Senate whistle-blower Heidi Mendoza as COA commissioner has been a big help to the agency.
"When I was told Heidi will be a commissioner, I said 'Wow, great.' This is someone I can work with. Being a total outsider having had no practice before the COA and not knowing anyone there, I thought she will be a great help. Plus the fact that sabi ko 'Magkautak kami. She's anti-graft. She's for integrity. We speak the same language.' We've been OK, I can really count on her," she said.
source
Posted at 05/05/2011
MANILA, Philippines - Commission on Audit (COA) chairman Ma. Gracia Pulido Tan on Thursday outlined her plans for the agency including sweeping reforms on how the COA conducts its audits.
Among the reforms being lined up by Tan are a review of the capacities and specialization requirements of resident auditors and the secondments of auditors to posts outside the country.
Tan said one of the major complaints against some COA auditors is the residency of auditors to choice government agencies, which allegedly leads to abuse.
She noted that some auditors such as former Intelligence Service of the Armed Forces of the Philippines (ISAFP) resident auditor Divina Cabrera are accused of staying at just one post for 10 years.
Cabrera has been accused of pocketing 2% of all intelligence contracts.
"We are going to review policy on residency of auditors kasi di ba ang dami mga complaints. Si auditor na ganito, 10 years na...Offhand, that's not good. Staying in an agency for so long is not good," Tan said.
The COA chief said Cabrera is under investigation after a complaint was filed about her extended stay in ISAFP.
"If there is sufficient lead to go on, for administrative investigation, then we can do that. My understanding is may complaint na naka-file. They can work until they are suspended. We do have a process. I don't want to forget that," she said.
Tan said she will not recommend a lifestyle check of auditors just yet since she believes that 95% of COA employees are dedicated to their work.
She said she asked COA's Human Resources Department to do an inventory of the agency's 8,500-plus employees including resident auditors.
She said she had received reports that at least one resident auditor has a secondment to New York City even though there is no ongoing audit in there.
"I want to know why they are there. If I cannot rationalize, they would have to come back," she said.
Auditing intel funds
Tan said COA would also like a review on the rules of audit for military intelligence funds especially since 80% of the expenses are only supported by a certification from the responsible officer. The theft of military intel funds was recently investigated in congressional investigations this year.
"Wala details. I understand the very nature of the intel funds has national security issues. Gusto ko ma-review yun kung ano pwede namin gawin sa audit that will be a little more substantive. Kasi kung ganun, parang clearing house lang kami...Ano limits ng confidentiality? Anu pwede i-detalye ng kaunti? Di naman pwede 80% puro confidential," she said.
She said the COA will also ensure that proper audit techniques will be conducted on projects of the Department of Public Works and Highways, considered one of the prime sources of corruption in government.
"Kung magbibilang ng pako, magbibilang ng pako. There are audit techniques maski sa private auditors hindi lahat tintignan, may sampling. The selection of a sample is also scientific so it will be representative. Pag may makita ka sa sample mo umabot ng 90% clean , clean na yan," she said.
'Heidi a big help'
Tan revealed she did not aspire for the top COA post but was prevailed upon to accept it by one of the Cabinet members.http://www.blogger.com/img/blank.gif
She said the appointment of Senate whistle-blower Heidi Mendoza as COA commissioner has been a big help to the agency.
"When I was told Heidi will be a commissioner, I said 'Wow, great.' This is someone I can work with. Being a total outsider having had no practice before the COA and not knowing anyone there, I thought she will be a great help. Plus the fact that sabi ko 'Magkautak kami. She's anti-graft. She's for integrity. We speak the same language.' We've been OK, I can really count on her," she said.
source
COA elected as external auditor of WHO
The Philippine Commission on Audit (COA) was elected as the new external auditor of the World Health Organization from 2012 to 2015.
Citing a report from the Philippine Embassy in Geneva, the Department of Foreign Affairs (DFA) said the election was held a the 64th World Health Assembly on May 19.
Health Secretary Enrique Ona and Permanent Representative to the United Nations (UN) and Other International Organizations in Geneva Evan Garcia led the Philippine delegation, the DFA said in a news release on its website.
New COA Chairwoman Maria Gracia Pulido-Tan and COA Commissioner Heidi Mendoza were also part of the Philippine delegation, the DFA said.
Pulido-Tan delivered the winning presentation of the Philippines' bid for the prestigious position, the DFA added.
The WHO is the UN's public health arm. It is the directing and coordinating authority for health within the UN system.
It is responsible for providing leadership on global health matters, shaping the health research agenda, setting norms and standards, articulating evidence-based policy options, providing technical support to countries and monitoring and assessing health trends.
source
Citing a report from the Philippine Embassy in Geneva, the Department of Foreign Affairs (DFA) said the election was held a the 64th World Health Assembly on May 19.
Health Secretary Enrique Ona and Permanent Representative to the United Nations (UN) and Other International Organizations in Geneva Evan Garcia led the Philippine delegation, the DFA said in a news release on its website.
New COA Chairwoman Maria Gracia Pulido-Tan and COA Commissioner Heidi Mendoza were also part of the Philippine delegation, the DFA said.
Pulido-Tan delivered the winning presentation of the Philippines' bid for the prestigious position, the DFA added.
The WHO is the UN's public health arm. It is the directing and coordinating authority for health within the UN system.
It is responsible for providing leadership on global health matters, shaping the health research agenda, setting norms and standards, articulating evidence-based policy options, providing technical support to countries and monitoring and assessing health trends.
source
Sunday, July 24, 2011
COA: Don’t waive fines for vehicles towed away
Cebu Daily News
8:41 am | Monday, July 18th, 2011
MANDAUE City officials were advised by the Commission on Audit (COA) to refrain from accomodating requests to waive the penalties, sanctions and charges imposed by towing company Jadewell Parking System Corp. on motorists.
State auditors told the city government to “strictly enforce the city ordinance on the use and operation of parking spaces.”
At the same time, the company should present its terms of reference based on the memorandum of agreement signed on Oct. 15, 2003 by former mayor Thadeo Ouano and Jadewell president Rogelio Tan, to ensure the delivery of income to the local government.
Under the agreement, the local is entitled to a 10-percent share of Jadewell’s total collections to be remitted to the City Treasurer’s Office.
“The verification conducted by the audit team revealed that there were many requests to release impounded/towed vehicles of several VIP’s (very important person’s) of Mandaue City thereby waiving all the penalties, sanctions and charges,” the COA report said.
“There were also requests where there were no notations but the penalties were still waived.”
Based on documents submitted by the company which do not include the months of May, June and July 2010, requests granted by Jadewell incurred for the city a loss of P40,953.
“The actual collections could not be validated since the official receipts got wet and the ones submitted, representing a month’s transaction, could not be separated,” the auditors added.
Towing and impounding of vehicles is governed by City Odinance 09-2003-220.
COA also recommended that Jadewell inventory all towed or impounded vehicles especially those impounded beyond six months that need to be sold in a public auction.
http://www.blogger.com/img/blank.gif
Local government was not delivered with vehicles impounded for more than six months.
The auditors discovered that there were plenty impounded vehicles in the impounding area.
Most of these were kept beyond six months and not sold.
The vehicles were not placed in a covered area which made these susceptible tothe elements.
source
8:41 am | Monday, July 18th, 2011
MANDAUE City officials were advised by the Commission on Audit (COA) to refrain from accomodating requests to waive the penalties, sanctions and charges imposed by towing company Jadewell Parking System Corp. on motorists.
State auditors told the city government to “strictly enforce the city ordinance on the use and operation of parking spaces.”
At the same time, the company should present its terms of reference based on the memorandum of agreement signed on Oct. 15, 2003 by former mayor Thadeo Ouano and Jadewell president Rogelio Tan, to ensure the delivery of income to the local government.
Under the agreement, the local is entitled to a 10-percent share of Jadewell’s total collections to be remitted to the City Treasurer’s Office.
“The verification conducted by the audit team revealed that there were many requests to release impounded/towed vehicles of several VIP’s (very important person’s) of Mandaue City thereby waiving all the penalties, sanctions and charges,” the COA report said.
“There were also requests where there were no notations but the penalties were still waived.”
Based on documents submitted by the company which do not include the months of May, June and July 2010, requests granted by Jadewell incurred for the city a loss of P40,953.
“The actual collections could not be validated since the official receipts got wet and the ones submitted, representing a month’s transaction, could not be separated,” the auditors added.
Towing and impounding of vehicles is governed by City Odinance 09-2003-220.
COA also recommended that Jadewell inventory all towed or impounded vehicles especially those impounded beyond six months that need to be sold in a public auction.
http://www.blogger.com/img/blank.gif
Local government was not delivered with vehicles impounded for more than six months.
The auditors discovered that there were plenty impounded vehicles in the impounding area.
Most of these were kept beyond six months and not sold.
The vehicles were not placed in a covered area which made these susceptible tothe elements.
source
SC allows audit of Boy Scout funds
By Edu Punay (The Philippine Star) Updated June 29, 2011
MANILA, Philippines - The Supreme Court (SC) has issued a ruling allowing the Commission on Audit (COA) to conduct an audit on the funds of the Boy Scouts of the Philippines (BSP).
The SC justices, voting 11-4 last June 7, ruled that the BSP is a public corporation and therefore subject to government audit.
“After looking at the legislative history of its amended charter and carefully studying the applicable laws and the arguments of both parties, we found that the BSP is a public corporation and its funds are subject to the COA’s audit jurisdiction,” the court said in a ruling penned by Associate Justice Teresita Leonardo-de Castro.
Ten other justices, including Chief Justice Renato Corona, concurred with this ruling.
The Court said Article XII Section 16 of the Constitution should not be construed as prohibiting Congress from creating public corporations.
“In fact, Congress has enacted numerous laws creating public corporations or government agencies or instrumentalities vested with corporate powers. Moreover, Sec.16, Art. XII, which relates to National Economy and Patrimony, could not have tied the hands of Congress in creating public corporations to serve any of the constitutional policies or objectives,” the ruling said.
The majority ruling held that a review of the record of the 1986 Constitutional Commission showed the intent of the framers of the highest law of our land “to distinguish between government corporations performing governmental functions and corporations involved in business or proprietary functions.”
The dissenting opinion of Justice Antonio Carpio insisted that “the Constitution recognizes only two classes of corporations: private corporations under a general law, and government-owned or controlled corporations created by special charters.”
It contended that the court, in its majority ruling, “introduces a totally different species of corporation, which is neither a private corporation nor a government-owned or controlled corporation and in so doing, is missing the fact that the BSP, which was created as a non-stock, non-profit corporation, can only be either a private corporation or a government-owned or controlled corporation.”
The case stemmed from a resolution issued by the COA on Aug. 19, 1999, with the subject “Defining the Commission’s policy with respect to the audit of the BSP.”
http://www.blogger.com/img/blank.gif
The commission stated that the BSP was created as a public corporation under Commonwealth Act No. 7278.
It cited that in “BSP vs. National Labor Relations Commission,” the SC ruled that the BSP, as constituted under its charter, was a “government-controlled corporation within the meaning of Article IX (B)(2)(1) of the Constitution.”
The COA said “the BSP is appropriately regarded as a government instrumentality under the 1987 Administrative Code.”
It likewise mentioned its mandate under Article IX(D) Section 2(1) of the Constitution.
source
MANILA, Philippines - The Supreme Court (SC) has issued a ruling allowing the Commission on Audit (COA) to conduct an audit on the funds of the Boy Scouts of the Philippines (BSP).
The SC justices, voting 11-4 last June 7, ruled that the BSP is a public corporation and therefore subject to government audit.
“After looking at the legislative history of its amended charter and carefully studying the applicable laws and the arguments of both parties, we found that the BSP is a public corporation and its funds are subject to the COA’s audit jurisdiction,” the court said in a ruling penned by Associate Justice Teresita Leonardo-de Castro.
Ten other justices, including Chief Justice Renato Corona, concurred with this ruling.
The Court said Article XII Section 16 of the Constitution should not be construed as prohibiting Congress from creating public corporations.
“In fact, Congress has enacted numerous laws creating public corporations or government agencies or instrumentalities vested with corporate powers. Moreover, Sec.16, Art. XII, which relates to National Economy and Patrimony, could not have tied the hands of Congress in creating public corporations to serve any of the constitutional policies or objectives,” the ruling said.
The majority ruling held that a review of the record of the 1986 Constitutional Commission showed the intent of the framers of the highest law of our land “to distinguish between government corporations performing governmental functions and corporations involved in business or proprietary functions.”
The dissenting opinion of Justice Antonio Carpio insisted that “the Constitution recognizes only two classes of corporations: private corporations under a general law, and government-owned or controlled corporations created by special charters.”
It contended that the court, in its majority ruling, “introduces a totally different species of corporation, which is neither a private corporation nor a government-owned or controlled corporation and in so doing, is missing the fact that the BSP, which was created as a non-stock, non-profit corporation, can only be either a private corporation or a government-owned or controlled corporation.”
The case stemmed from a resolution issued by the COA on Aug. 19, 1999, with the subject “Defining the Commission’s policy with respect to the audit of the BSP.”
http://www.blogger.com/img/blank.gif
The commission stated that the BSP was created as a public corporation under Commonwealth Act No. 7278.
It cited that in “BSP vs. National Labor Relations Commission,” the SC ruled that the BSP, as constituted under its charter, was a “government-controlled corporation within the meaning of Article IX (B)(2)(1) of the Constitution.”
The COA said “the BSP is appropriately regarded as a government instrumentality under the 1987 Administrative Code.”
It likewise mentioned its mandate under Article IX(D) Section 2(1) of the Constitution.
source
Ombudsman: ‘Superbody’ to investigate gov't contracts
abs-cbnNEWS.com
Posted at 07/19/2011 1:22 PM
MANILA, Philippines - Acting Ombudsman Orlando Casimiro has created a “superbody” that will examine and investigate government contracts and transactions.
In a memorandum circular, he has already requested the institutional participation of the Commission on Audit (COA), the Department of Justice (DOJ), National Bureau of Investigation (NBI), Anti-Money Laundering Council (AMLC) and the Bureau of Internal Revenue (BIR).
The team, called Special Multi-Agency Reform Team, will “examine and investigate contracts and transactions entered into by government agencies through their respective officials and employees with the end view of expediting the prosecution of all perpetrators of corrupt activities, should the evidence so warrant.”
It is anchored on the Ombudsman’s mandate to take measures against graft and corruption.
Sec. 15 (4) of RA 6770 (Ombudsman Act of 1989) mandates the Office of the Ombudsman to “direct the officer concerned, in any appropriate case, and subject to such limitations as it may provide in its rules and procedure, to furnish it with copies of documents relating to contracts or transactions entered into by his office involving the disbursement or use of public funds or properties, and report any irregularity to the Commission on Audit for appropriate action.”
The law also provides that the Ombudsman has the power to request government agencies for assistance.
source
Posted at 07/19/2011 1:22 PM
MANILA, Philippines - Acting Ombudsman Orlando Casimiro has created a “superbody” that will examine and investigate government contracts and transactions.
In a memorandum circular, he has already requested the institutional participation of the Commission on Audit (COA), the Department of Justice (DOJ), National Bureau of Investigation (NBI), Anti-Money Laundering Council (AMLC) and the Bureau of Internal Revenue (BIR).
The team, called Special Multi-Agency Reform Team, will “examine and investigate contracts and transactions entered into by government agencies through their respective officials and employees with the end view of expediting the prosecution of all perpetrators of corrupt activities, should the evidence so warrant.”
It is anchored on the Ombudsman’s mandate to take measures against graft and corruption.
Sec. 15 (4) of RA 6770 (Ombudsman Act of 1989) mandates the Office of the Ombudsman to “direct the officer concerned, in any appropriate case, and subject to such limitations as it may provide in its rules and procedure, to furnish it with copies of documents relating to contracts or transactions entered into by his office involving the disbursement or use of public funds or properties, and report any irregularity to the Commission on Audit for appropriate action.”
The law also provides that the Ombudsman has the power to request government agencies for assistance.
source
COA questions PPA's white elephant ports
By Rainier Allan Ronda (The Philippine Star) Updated July 12, 2011
MANILA, Philippines - The Commission on Audit (COA) yesterday questioned the Philippine Ports Authority’s (PPA) “white elephant” traditional port construction and expensive maintenance projects in the past years.
However, the PPA continues the expensive projects, invoking the government’s need to invest in government infrastructure to promote trade and economic activity.
In a 2009 COA report, auditors had already called the attention of PPA officials over the port construction projects valued at P520.76 million which the agency found to be “financially non viable and unable to spur economic growth in the area” where they were built.
Among these financially non-viable ports were the Orion Terminal port in Bataan, the Dingalan Terminal Port in Nueva Ecija, the Canalate seaport in Malolos, Bulacan, the Santa Cruz seaport in Paombong, Bulacan, and the Masantol River Wharf in Pampanga.
“We evaluated the viability of the newly constructed ports on the basis of the revenues generated for the year and we observed that the earnings were very minimal. The summary of revenues by piers and tariff items for the year 2009 showed that the Orion and Dingalan Terminal ports generated revenues of only P689,286 and P72,251, respectively,” the COA report said.
In the 2008 audit of PPA, COA had already raised concerns on the thrust of the agency to build new ports, especially in places where they cannot reasonably be expected to be viable.
“Ports developed at a cost of P1.06 billion are unutilized or underutilized and the continuous operation and maintenance of which is disadvantageous to the PPA,” the COA said in one of their value-for-money audits in 2008.
Of the 18 ports built by the PPA during that time, the COA noted that most, if not all, ended up being idle or “counterproductive” assets, which need regular costly maintenance.
The controversial Pulupandan port in Negros Occidental emerged as the most expensive project worth P416 million.
“It appears that management has not gained success in reviving port activities at the Pulupandan port which was renovated and completed on Sept. 29, 2006 at a cost of P416,160,737,” COA noted.
COA warned the PPA officials that the maintenance of the unviable ports affects the financial position of the port agency.
“The objective of spurring economic development in the localities appears not in the near future and continuous operation and maintenance of the assets may adversely affect the operation and programs for implementation of the PPA,” COA said in 2008.
source
MANILA, Philippines - The Commission on Audit (COA) yesterday questioned the Philippine Ports Authority’s (PPA) “white elephant” traditional port construction and expensive maintenance projects in the past years.
However, the PPA continues the expensive projects, invoking the government’s need to invest in government infrastructure to promote trade and economic activity.
In a 2009 COA report, auditors had already called the attention of PPA officials over the port construction projects valued at P520.76 million which the agency found to be “financially non viable and unable to spur economic growth in the area” where they were built.
Among these financially non-viable ports were the Orion Terminal port in Bataan, the Dingalan Terminal Port in Nueva Ecija, the Canalate seaport in Malolos, Bulacan, the Santa Cruz seaport in Paombong, Bulacan, and the Masantol River Wharf in Pampanga.
“We evaluated the viability of the newly constructed ports on the basis of the revenues generated for the year and we observed that the earnings were very minimal. The summary of revenues by piers and tariff items for the year 2009 showed that the Orion and Dingalan Terminal ports generated revenues of only P689,286 and P72,251, respectively,” the COA report said.
In the 2008 audit of PPA, COA had already raised concerns on the thrust of the agency to build new ports, especially in places where they cannot reasonably be expected to be viable.
“Ports developed at a cost of P1.06 billion are unutilized or underutilized and the continuous operation and maintenance of which is disadvantageous to the PPA,” the COA said in one of their value-for-money audits in 2008.
Of the 18 ports built by the PPA during that time, the COA noted that most, if not all, ended up being idle or “counterproductive” assets, which need regular costly maintenance.
The controversial Pulupandan port in Negros Occidental emerged as the most expensive project worth P416 million.
“It appears that management has not gained success in reviving port activities at the Pulupandan port which was renovated and completed on Sept. 29, 2006 at a cost of P416,160,737,” COA noted.
COA warned the PPA officials that the maintenance of the unviable ports affects the financial position of the port agency.
“The objective of spurring economic development in the localities appears not in the near future and continuous operation and maintenance of the assets may adversely affect the operation and programs for implementation of the PPA,” COA said in 2008.
source
COA: P172M charity fund diverted
By Cathy C. Yamsuan
Philippine Daily Inquirer
1:59 am | Friday, July 15th, 2011
The Philippine Charity Sweepstakes Office (PCSO) may have diverted more than P172 million from its other accounts to intelligence funds, an act that Senate President Juan Ponce Enrile said was a violation of the agency’s charter.
COA Commissioner Heidi Mendoza said there were indications that charity funds in particular were used to augment disbursements for intelligence funds as authorized by then President Gloria Macapagal-Arroyo.
Under the PCSO charter, earnings of the agency are divided as follows—55 percent are given out as prize money to lucky bettors; 30 percent are allotted for charity expenses; and 15 percent are earmarked for operations. Intelligence funds can only be drawn from operational funds.
In 2009, Rosario Uriarte, then PCSO vice chairperson and general manager, authorized the disbursement of P90 million in four installments, data from the blue ribbon committee showed.
Figures presented by the Commission on Audit (COA) at the hearing of the Senate blue ribbon committee on Thursday showed that in 2009, the PCSO suffered “net losses” of P43,632,942 in operating expenses and P128,665,765 in charity funds.
‘Comingling’
Mendoza told senators that the net losses were not immediately reflected in the PCSO’s 2009 statement of income and expenditures because the account reports for prize money, charity and operations were “comingled” in the report.
Mendoza noted, however, that while the PCSO chair was given a P5-million regular intelligence budget, the general manager could get as much as P60 million in special additional expenses from the corporate operating budget.
She said the COA had been repeatedly requesting the PCSO since 2007 to refrain from the comingling practice.
Because of “comingling,” Mendoza said the PCSO’s net losses were not immediately detected when reported along with the P255,503,197 earnings recorded in the prize fund.
Neither Mendoza nor the members of the former PCSO board discussed the actual figures of the three accounts for 2009.
“If you’re talking of the special (expenses), they’re coming from the charity fund and a certain percentage of the (public relations) fund. That is what we can draw from the information (provided by the PCSO),” Mendoza told senators.
Former PCSO Chairman Sergio Valencia maintained that intelligence funds and even those used for public relations campaigns only came from operational expenses.
Drawing from earlier data presented to the blue ribbon committee, Senate President Juan Ponce Enrile asked Valencia why the board had allowed excessive disbursements of intelligence funds despite the limits set by its charter.
Arroyo authorization
The Senate already learned at previous hearings that Uriarte disbursed a total of P325 million in intelligence funds from April 2008 to February 2010. This includes the P160 million in two installments—nearly half of the entire amount—that was spent during the months leading to the 2010 elections.
Uriarte earlier said that as special disbursing officer, she was able to go directly to Arroyo to ask for authorization to acquire additional intelligence funds.
“The President may issue an order (to release intelligence funds) but you as members of the board of a government corporation have a trust obligation to operate within your charter. You cannot pass the blame on somebody else. You assume that responsibility,” Enrile said. “The President does not assume that trust responsibility.”
“Do you obey ministerially or do you exercise judgment based on the mandate of Congress … which is contained in your charter?” Enrile asked.
Valencia replied, “We are very careful about the disbursements.”
At this point, Mendoza pointed out that the agency’s 2009 statement of expenditures showed that the previous PCSO comingled the funds.
“Meaning the income of the PCSO was not broken into separate accounts? Should there not be separate accounts?” Enrile asked.
“Yes,” Mendoza replied. “After the separation of accounts, it showed a net loss of P43 million. Operations take a hit because huge sums spent for confidential (expenses that) were charged to operations,” she said.
Lumped together
Mendoza said the losses would not be detected if all the accounts were lumped together.
“The income statement’s net total sums up the results, so this would not be detected. But this finding is included in the COA report (on PCSO funds). Since 2007, we have been reiterating our request for the PCSO to separate the accounts,” Mendoza said.
Ignorance not excuse
Senator Teofisto Guingona III, the blue ribbon committee chairman, confronted Valencia with this detail. “I’m not aware of that,” Valencia said. “Perhaps the officers in budget and accounting…”
“Mr. Valencia, you (were) the chairman,” Enrile snapped. “You cannot say you don’t know the charter of the corporation! Ignorance is not an excuse for you, my God! That’s the first thing any member of a board does, to study the articles of incorporation!”
Valencia said he was aware of the charter and of the separation of the three accounts. “All reports brought to the management seemed to be in order,” he said.
“You cannot scrutinize your financial records? You only rely on the report of your executives. You’re supposed to be the custodian,” Enrile shot back.
Obstruction in audit
Mendoza said one obstruction in audit efforts was a circular issued in 2003 that required only a certification to justify a disbursement from intelligence or confidential funds.
“The problem with this circular is that the responsibility for the installation of control was shifted by the auditor to the management (of agencies in charge of liquidation). So it is now management that has the responsibility to ensure that expenses are in accordance with rules and regulations,” Mendoza said.
Supporting docs not required
Mendoza said the circular “relaxed” the liquidation process because supporting documents and receipts were no longer required.
“We believe there is a need to revisit the law and make changes, but there is a need to consult with a lot of agencies (before this can be done),” she added.
Mendoza maintained, however, that the COA understood that limited disclosures were necessary for projects that involved national security.
Earlier on Thursday, Uriarte again found herself in hot water after Sen. Franklin Drilon presented data showing that at least three liquidation certificates for 2009 showed that P70 million in intelligence funds were used to monitor “bomb threats, kidnapping, destabilization and terrorism.”
Intel funds for terrorism
Another P37 million, released in two installments later that year, was used for bilateral and security relations.
“You have more than P116 million liquidated for bomb threats, kidnapping, destabilization and terrorism yet you also submitted (excuses for the same period) about using intelligence funds to monitor unauthorized use of ambulances and fraudulent schemes or to stop illegal gambling,” Drilon noted.
Uriarte said the PCSO’s data center and some lotto operators had received bomb threats. “That’s what I remember,” she replied.
“But after spending more than P100 million, did you at least file any case?” Drilon asked.
“Yes, it is reflected in (National Bureau of Investigation) records. We have made apprehensions,” Uriarte said.
Uriarte also explained that intelligence funds used for “bilateral and security relations” were in fact given as blood money to families of victims of crimes committed by overseas Filipino workers.
news source
Philippine Daily Inquirer
1:59 am | Friday, July 15th, 2011
The Philippine Charity Sweepstakes Office (PCSO) may have diverted more than P172 million from its other accounts to intelligence funds, an act that Senate President Juan Ponce Enrile said was a violation of the agency’s charter.
COA Commissioner Heidi Mendoza said there were indications that charity funds in particular were used to augment disbursements for intelligence funds as authorized by then President Gloria Macapagal-Arroyo.
Under the PCSO charter, earnings of the agency are divided as follows—55 percent are given out as prize money to lucky bettors; 30 percent are allotted for charity expenses; and 15 percent are earmarked for operations. Intelligence funds can only be drawn from operational funds.
In 2009, Rosario Uriarte, then PCSO vice chairperson and general manager, authorized the disbursement of P90 million in four installments, data from the blue ribbon committee showed.
Figures presented by the Commission on Audit (COA) at the hearing of the Senate blue ribbon committee on Thursday showed that in 2009, the PCSO suffered “net losses” of P43,632,942 in operating expenses and P128,665,765 in charity funds.
‘Comingling’
Mendoza told senators that the net losses were not immediately reflected in the PCSO’s 2009 statement of income and expenditures because the account reports for prize money, charity and operations were “comingled” in the report.
Mendoza noted, however, that while the PCSO chair was given a P5-million regular intelligence budget, the general manager could get as much as P60 million in special additional expenses from the corporate operating budget.
She said the COA had been repeatedly requesting the PCSO since 2007 to refrain from the comingling practice.
Because of “comingling,” Mendoza said the PCSO’s net losses were not immediately detected when reported along with the P255,503,197 earnings recorded in the prize fund.
Neither Mendoza nor the members of the former PCSO board discussed the actual figures of the three accounts for 2009.
“If you’re talking of the special (expenses), they’re coming from the charity fund and a certain percentage of the (public relations) fund. That is what we can draw from the information (provided by the PCSO),” Mendoza told senators.
Former PCSO Chairman Sergio Valencia maintained that intelligence funds and even those used for public relations campaigns only came from operational expenses.
Drawing from earlier data presented to the blue ribbon committee, Senate President Juan Ponce Enrile asked Valencia why the board had allowed excessive disbursements of intelligence funds despite the limits set by its charter.
Arroyo authorization
The Senate already learned at previous hearings that Uriarte disbursed a total of P325 million in intelligence funds from April 2008 to February 2010. This includes the P160 million in two installments—nearly half of the entire amount—that was spent during the months leading to the 2010 elections.
Uriarte earlier said that as special disbursing officer, she was able to go directly to Arroyo to ask for authorization to acquire additional intelligence funds.
“The President may issue an order (to release intelligence funds) but you as members of the board of a government corporation have a trust obligation to operate within your charter. You cannot pass the blame on somebody else. You assume that responsibility,” Enrile said. “The President does not assume that trust responsibility.”
“Do you obey ministerially or do you exercise judgment based on the mandate of Congress … which is contained in your charter?” Enrile asked.
Valencia replied, “We are very careful about the disbursements.”
At this point, Mendoza pointed out that the agency’s 2009 statement of expenditures showed that the previous PCSO comingled the funds.
“Meaning the income of the PCSO was not broken into separate accounts? Should there not be separate accounts?” Enrile asked.
“Yes,” Mendoza replied. “After the separation of accounts, it showed a net loss of P43 million. Operations take a hit because huge sums spent for confidential (expenses that) were charged to operations,” she said.
Lumped together
Mendoza said the losses would not be detected if all the accounts were lumped together.
“The income statement’s net total sums up the results, so this would not be detected. But this finding is included in the COA report (on PCSO funds). Since 2007, we have been reiterating our request for the PCSO to separate the accounts,” Mendoza said.
Ignorance not excuse
Senator Teofisto Guingona III, the blue ribbon committee chairman, confronted Valencia with this detail. “I’m not aware of that,” Valencia said. “Perhaps the officers in budget and accounting…”
“Mr. Valencia, you (were) the chairman,” Enrile snapped. “You cannot say you don’t know the charter of the corporation! Ignorance is not an excuse for you, my God! That’s the first thing any member of a board does, to study the articles of incorporation!”
Valencia said he was aware of the charter and of the separation of the three accounts. “All reports brought to the management seemed to be in order,” he said.
“You cannot scrutinize your financial records? You only rely on the report of your executives. You’re supposed to be the custodian,” Enrile shot back.
Obstruction in audit
Mendoza said one obstruction in audit efforts was a circular issued in 2003 that required only a certification to justify a disbursement from intelligence or confidential funds.
“The problem with this circular is that the responsibility for the installation of control was shifted by the auditor to the management (of agencies in charge of liquidation). So it is now management that has the responsibility to ensure that expenses are in accordance with rules and regulations,” Mendoza said.
Supporting docs not required
Mendoza said the circular “relaxed” the liquidation process because supporting documents and receipts were no longer required.
“We believe there is a need to revisit the law and make changes, but there is a need to consult with a lot of agencies (before this can be done),” she added.
Mendoza maintained, however, that the COA understood that limited disclosures were necessary for projects that involved national security.
Earlier on Thursday, Uriarte again found herself in hot water after Sen. Franklin Drilon presented data showing that at least three liquidation certificates for 2009 showed that P70 million in intelligence funds were used to monitor “bomb threats, kidnapping, destabilization and terrorism.”
Intel funds for terrorism
Another P37 million, released in two installments later that year, was used for bilateral and security relations.
“You have more than P116 million liquidated for bomb threats, kidnapping, destabilization and terrorism yet you also submitted (excuses for the same period) about using intelligence funds to monitor unauthorized use of ambulances and fraudulent schemes or to stop illegal gambling,” Drilon noted.
Uriarte said the PCSO’s data center and some lotto operators had received bomb threats. “That’s what I remember,” she replied.
“But after spending more than P100 million, did you at least file any case?” Drilon asked.
“Yes, it is reflected in (National Bureau of Investigation) records. We have made apprehensions,” Uriarte said.
Uriarte also explained that intelligence funds used for “bilateral and security relations” were in fact given as blood money to families of victims of crimes committed by overseas Filipino workers.
news source
COA asked to check PNP's receipt of PCSO funds
KIMBERLY JANE TAN, GMA News
Senate blue ribbon committee chairman Sen. Teofisto Guingona III on Monday asked the Commission on Audit (COA) to determine whether the Philippine National Police (PNP) actually received and utilized the money given to it by the Philippine Charity Sweepstakes Office (PCSO).
"Nagamit (ba) talaga ng pulis sa tamang paggamit (Did the police receive the money and use it properly)," Guingona said during the continuation of the Senate blue ribbon panel hearing on the alleged anomalies besetting the PCSO.
Rojas said the charity fund has been allocating 5 percent of its funds for the PNP: 0.5 percent to the national PNP, 0.5 percent to the regional PNP, 1 percent to the provincial PNP, and 3 percent to the city and municipal PNP.
"They are supposed to get it on a monthly basis," he said.
He said the funds for the national PNP is coursed through the PCSO but the funds for the local PNP are coursed directly through the small town lottery (STL) operators.
But when Guingona asked whether they confirmed that the local PNP actually received the money, Rojas said they were furnished acknowledgement receipts but that he still couldn't categorically say that they were sure the police received it.
Lawyer Fidela Tan of the Commission on Audit, who was also present during the hearing, likewise said that she did not know the PNP received the money.
Guingona then asked the COA to look into the matter.
The Senate hearing was ongoing as of posting time.
news source
Senate blue ribbon committee chairman Sen. Teofisto Guingona III on Monday asked the Commission on Audit (COA) to determine whether the Philippine National Police (PNP) actually received and utilized the money given to it by the Philippine Charity Sweepstakes Office (PCSO).
"Nagamit (ba) talaga ng pulis sa tamang paggamit (Did the police receive the money and use it properly)," Guingona said during the continuation of the Senate blue ribbon panel hearing on the alleged anomalies besetting the PCSO.
Rojas said the charity fund has been allocating 5 percent of its funds for the PNP: 0.5 percent to the national PNP, 0.5 percent to the regional PNP, 1 percent to the provincial PNP, and 3 percent to the city and municipal PNP.
"They are supposed to get it on a monthly basis," he said.
He said the funds for the national PNP is coursed through the PCSO but the funds for the local PNP are coursed directly through the small town lottery (STL) operators.
But when Guingona asked whether they confirmed that the local PNP actually received the money, Rojas said they were furnished acknowledgement receipts but that he still couldn't categorically say that they were sure the police received it.
Lawyer Fidela Tan of the Commission on Audit, who was also present during the hearing, likewise said that she did not know the PNP received the money.
Guingona then asked the COA to look into the matter.
The Senate hearing was ongoing as of posting time.
news source
COA shares view on STL
By BEN ROSARIO and EDD USMAN
July 24, 2011, 7:02pm
MANILA, Philippines -- The Commission on Audit (CoA) has aired the possibility that small town lottery (STL) operators may have hoodwinked the Philippine Charity Sweepstakes Office (PCSO) and congressmen in the sharing of STL profits in the past four years.
This was gathered after congressmen denied receiving 2.5 percent of gross receipts of STL operators in their respective districts despite the inclusion of their names in the list of recipients.
Among those who vehemently denied having received money from STL were Deputy Speakers Lorenzo Tañada (LP, Quezon) and Arnulfo Fuentebella (NPC, Camarines Sur); Minority Leader Edcel Lagman (Lakas-Kampi, Albay); Reps. Elpidio Barzaga (NUP, Cavite); and Rodolfo Albano (Lakas-Kampi, Isabela).
On the other hand, Reps. Edgar San Luis (NPC, Laguna) and Danilo Suarez (Lakas-Kampi, Quezon), together with former Nueva Ecija Rep. Edno Joson, said the amounts they received were well accounted for and spent for charity programs in their respective congressional districts.
San Luis showed reporters copies of receipts and liquidation documents that he submitted to the STL operator to justify the expenses.
“Every centavo has been accounted for. Each peso went to what it is intended for – to charity,” said San Luis.
San Luis welcomed the conduct of a House investigation into the controversy.
A CoA report has indicated that under the STL rules and regulations, the 2.5 percent contribution for charity programs in various congressional districts will be directly remitted to the office of concerned congressmen.
Amid the fallout of the revelation of STL operators were directly giving congressmen their districts' shares from the STL revenue sans liquidation, the Philippine Charity Sweepstakes Office is considering re-visiting the implementing rules and regulations (IRR) of the PCSO Loterya ng Bayan (PLB), STL's replacement.
The source said the launching of PLB this year after July may have to be deferred anew to a later date because of "intervening events," apparently referring to the fund mess at the PCSO during the past administration, which the Senate Blue Ribbon Committee has been investigating.
State auditors said effective audit examination could not be rendered until the PCSO revokes Board Resolution No. 248 that directs direct remittance to congressional district of STL funds.
This audit recommendation backed suggestions aired by some solons that STL operators had actually withheld payments to congressmen and that the lack of audit examination failed to prevent the practice.
news source
July 24, 2011, 7:02pm
MANILA, Philippines -- The Commission on Audit (CoA) has aired the possibility that small town lottery (STL) operators may have hoodwinked the Philippine Charity Sweepstakes Office (PCSO) and congressmen in the sharing of STL profits in the past four years.
This was gathered after congressmen denied receiving 2.5 percent of gross receipts of STL operators in their respective districts despite the inclusion of their names in the list of recipients.
Among those who vehemently denied having received money from STL were Deputy Speakers Lorenzo Tañada (LP, Quezon) and Arnulfo Fuentebella (NPC, Camarines Sur); Minority Leader Edcel Lagman (Lakas-Kampi, Albay); Reps. Elpidio Barzaga (NUP, Cavite); and Rodolfo Albano (Lakas-Kampi, Isabela).
On the other hand, Reps. Edgar San Luis (NPC, Laguna) and Danilo Suarez (Lakas-Kampi, Quezon), together with former Nueva Ecija Rep. Edno Joson, said the amounts they received were well accounted for and spent for charity programs in their respective congressional districts.
San Luis showed reporters copies of receipts and liquidation documents that he submitted to the STL operator to justify the expenses.
“Every centavo has been accounted for. Each peso went to what it is intended for – to charity,” said San Luis.
San Luis welcomed the conduct of a House investigation into the controversy.
A CoA report has indicated that under the STL rules and regulations, the 2.5 percent contribution for charity programs in various congressional districts will be directly remitted to the office of concerned congressmen.
Amid the fallout of the revelation of STL operators were directly giving congressmen their districts' shares from the STL revenue sans liquidation, the Philippine Charity Sweepstakes Office is considering re-visiting the implementing rules and regulations (IRR) of the PCSO Loterya ng Bayan (PLB), STL's replacement.
The source said the launching of PLB this year after July may have to be deferred anew to a later date because of "intervening events," apparently referring to the fund mess at the PCSO during the past administration, which the Senate Blue Ribbon Committee has been investigating.
State auditors said effective audit examination could not be rendered until the PCSO revokes Board Resolution No. 248 that directs direct remittance to congressional district of STL funds.
This audit recommendation backed suggestions aired by some solons that STL operators had actually withheld payments to congressmen and that the lack of audit examination failed to prevent the practice.
news source
Friday, July 22, 2011
Court stops sale of Bacolod land to Ayala
By: Carla P. Gomez, Irene R. Sino Cruz
CEBU CITY, Philippines—The Court of Appeals on Wednesday issued a 60-day temporary restraining order (TRO) enjoining the Negros Occidental provincial government from proceeding with the sale and lease of a 7.7-hectare prime property in Bacolod City.
The TRO stemmed from a petition for certiorari filed by SM Prime Holdings Inc., which has insisted that it won the July 7 public bidding for the property. SMPHI posted a P50-million bond.
In a three-page resolution, the CA 20th Division said the request for a TRO was granted to “preserve the rights of the parties during the pendency of the instant petition, as well as to prevent the judgement that may be promulgated in this case from being rendered ineffectual.”
Among the petition’s respondents were the province of Negros Occidental, Gov. Alfredo G. Marañon Jr., and the committee on awards and disposal of real properties of the province and its members—Patrick Lacson, Mary Ann Manyon-Lamis, Nelda Geroso, Lucille I. Pinongan and Ernie F. Mapa.
Included were the provincial board members as well as Judge Estefanio S. Libutan Jr. of Bacolod Regional Trial Court Branch 50.
Superior bid
The CA directed Libutan to refrain from implementing his order denying SMPHI’s petition for a TRO to block the sale of the property to Ayala Land Inc.
SMPHI has insisted that it “clearly” submitted a bid superior to Ayala’s and was surprised when the bidding was declared a failure.
Judge Libutan, however, did not issue a TRO but instead asked the respondents to comment on SMPHI’s petition. The company decided to elevate its petition to the CA.
SMPHI had proposed to purchase a portion of the province-owned property for P18,885 per square meter and lease the remaining portion for P65 per sqm, well within the price set by the awards committee.
Ayala, on the other hand, submitted a bid of P17,000 per sqm for the purchase and P50 per sqm for the lease.
The provincial government declared the bidding a failure after both parties’ bids came in below the floor price set by the Commission on Audit.
Marañon said both parties were invited to a negotiated bidding on July 15 but SMPHI did not show up, leading to the award of the property to Ayala. He also said the province stood to make more from the Ayala deal.
Earlier, SMPHI lawyer Vince Bayhon said the award of the prime property to Ayala was “invalid.”
Bayhon also questioned the provincial government’s decision to declare a failure of bidding.
No floor price
He noted that the provincial government did not disclose the floor price or appraisal value of the property during the public bidding and even after the sealed bids of both parties were opened and read aloud.
The award of the property to Ayala, however, is supported by four business groups and the Bacolod city council.
“With the decision to develop the property into a mixed-used integrated project that includes residential, commercial, office, hotel and convention center developments, we believe jobs will be created and visitors will be enticed to visit the province,” they said.
The signatories were Roberto Montelibano, regional governor of the Philippine Chamber of Commerce and Industry in Western Visayas; Frank Carbon, president of the Metro Bacolod Chamber of Commerce and Industry; John Yap, president of the Southern Negros Filipino-Chinese Chamber of Commerce and Industry; and Lucio Chua, president of the Northern Negros Filipino Chinese Chamber of Commerce and Industry.
source
CEBU CITY, Philippines—The Court of Appeals on Wednesday issued a 60-day temporary restraining order (TRO) enjoining the Negros Occidental provincial government from proceeding with the sale and lease of a 7.7-hectare prime property in Bacolod City.
The TRO stemmed from a petition for certiorari filed by SM Prime Holdings Inc., which has insisted that it won the July 7 public bidding for the property. SMPHI posted a P50-million bond.
In a three-page resolution, the CA 20th Division said the request for a TRO was granted to “preserve the rights of the parties during the pendency of the instant petition, as well as to prevent the judgement that may be promulgated in this case from being rendered ineffectual.”
Among the petition’s respondents were the province of Negros Occidental, Gov. Alfredo G. Marañon Jr., and the committee on awards and disposal of real properties of the province and its members—Patrick Lacson, Mary Ann Manyon-Lamis, Nelda Geroso, Lucille I. Pinongan and Ernie F. Mapa.
Included were the provincial board members as well as Judge Estefanio S. Libutan Jr. of Bacolod Regional Trial Court Branch 50.
Superior bid
The CA directed Libutan to refrain from implementing his order denying SMPHI’s petition for a TRO to block the sale of the property to Ayala Land Inc.
SMPHI has insisted that it “clearly” submitted a bid superior to Ayala’s and was surprised when the bidding was declared a failure.
Judge Libutan, however, did not issue a TRO but instead asked the respondents to comment on SMPHI’s petition. The company decided to elevate its petition to the CA.
SMPHI had proposed to purchase a portion of the province-owned property for P18,885 per square meter and lease the remaining portion for P65 per sqm, well within the price set by the awards committee.
Ayala, on the other hand, submitted a bid of P17,000 per sqm for the purchase and P50 per sqm for the lease.
The provincial government declared the bidding a failure after both parties’ bids came in below the floor price set by the Commission on Audit.
Marañon said both parties were invited to a negotiated bidding on July 15 but SMPHI did not show up, leading to the award of the property to Ayala. He also said the province stood to make more from the Ayala deal.
Earlier, SMPHI lawyer Vince Bayhon said the award of the prime property to Ayala was “invalid.”
Bayhon also questioned the provincial government’s decision to declare a failure of bidding.
No floor price
He noted that the provincial government did not disclose the floor price or appraisal value of the property during the public bidding and even after the sealed bids of both parties were opened and read aloud.
The award of the property to Ayala, however, is supported by four business groups and the Bacolod city council.
“With the decision to develop the property into a mixed-used integrated project that includes residential, commercial, office, hotel and convention center developments, we believe jobs will be created and visitors will be enticed to visit the province,” they said.
The signatories were Roberto Montelibano, regional governor of the Philippine Chamber of Commerce and Industry in Western Visayas; Frank Carbon, president of the Metro Bacolod Chamber of Commerce and Industry; John Yap, president of the Southern Negros Filipino-Chinese Chamber of Commerce and Industry; and Lucio Chua, president of the Northern Negros Filipino Chinese Chamber of Commerce and Industry.
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CA grants SM petition for TRO on Ayala deal
BY CARLA GOMEZ
The Court of Appeals 20th Division in Cebu City has issued a 60-day temporary restraining order enjoining the Negros Occidental provincial government from proceeding with the sale and lease of its 7.7-hectare prime property in Bacolod City, after SM Prime Holdings Inc. put up a P50 million bond.
The TRO was issued by the CA Wednesday in response to a petition filed by SMPHI that insists it won the July 7 public bidding for the property the provincial government awarded to AyalaLand.
In a three-page petition, the CA said the request for TRO was granted to “preserve the rights of the parties during the pendency of the instant petition as well as to prevent the judgment that may be promulgated in this case from being rendered ineffectual.”
The CA resolution also directs respondents Gov. Alfredo Marañon Jr., members of the Negros Occidental Committee on Awards and Disposal of Real Properties and the Sangguniang Panlalawigan, and Bacolod RTC Judge Estefanio Libutan to file their comments within 10 days to show cause why a writ of preliminary injunction sought by SMPHI should not be granted.
SMPHI will then file its reply within five days from receipt of the comments, the CA resolution added.
The CA order was penned by Associate Justice Victoria Isabel Paredes, and concurred by Associate Justices Edgardo de Los Santos and Ramon Paul Hernando.
Marañon and provincial government lawyer Mary Ann Manayon-Lamis, however, said the Capitol officials had not received an official copy of the TRO yesterday.
The Negros Occidental Sangguniang Panlalawigan Wednesday unanimously approved the deed of conditional sale and lease contract for AyalaLand’s takeover of the 7.7-hectare property.
Ernie Villa of the Commission on Audit who appeared at the SP regular session with other members of the Committee on Awards and Disposal of Real Properties, said the committee members acted in accordance with the COA procedures.
AyalaLand said it is investing at least P6 billion for the development of the 7.7 hectares of government property.
SMPHI said it entered a higher bid than Ayala in the July 7 bidding and should be declared the rightful winner.
The governor, on the other hand, said the July 7 bidding was declared a failure because both parties entered bids below the floor price of the land as approved by the COA.
Both parties were invited to a negotiated bidding on July 15 but SMPHI did not join leading to the awarding of the property to Ayala, the governor said.
SMPHI charged the governor with being biased in favor of Ayala.
The hearing of the main case filed by SMPHI against the governor, and members of the province's committee on awards and SP before the Bacolod Regional Trial Branch 50 for certiorari is also proceeding.
Libutan yesterday ordered the SP members who were included in SMPHI’s amended petition to submit their comments in 10 days after which SMPHI will be given five days to reply, provincial lawyer Maryann Manayon said yesterday.
The judge will then assess if there is basis to proceed with the hearing, or to just ask the parties to submit their memoranda so a decision can be made, she added.
Libutan earlier denied two TROs sought by SMPHI prompting it to go to the CA.
source
The Court of Appeals 20th Division in Cebu City has issued a 60-day temporary restraining order enjoining the Negros Occidental provincial government from proceeding with the sale and lease of its 7.7-hectare prime property in Bacolod City, after SM Prime Holdings Inc. put up a P50 million bond.
The TRO was issued by the CA Wednesday in response to a petition filed by SMPHI that insists it won the July 7 public bidding for the property the provincial government awarded to AyalaLand.
In a three-page petition, the CA said the request for TRO was granted to “preserve the rights of the parties during the pendency of the instant petition as well as to prevent the judgment that may be promulgated in this case from being rendered ineffectual.”
The CA resolution also directs respondents Gov. Alfredo Marañon Jr., members of the Negros Occidental Committee on Awards and Disposal of Real Properties and the Sangguniang Panlalawigan, and Bacolod RTC Judge Estefanio Libutan to file their comments within 10 days to show cause why a writ of preliminary injunction sought by SMPHI should not be granted.
SMPHI will then file its reply within five days from receipt of the comments, the CA resolution added.
The CA order was penned by Associate Justice Victoria Isabel Paredes, and concurred by Associate Justices Edgardo de Los Santos and Ramon Paul Hernando.
Marañon and provincial government lawyer Mary Ann Manayon-Lamis, however, said the Capitol officials had not received an official copy of the TRO yesterday.
The Negros Occidental Sangguniang Panlalawigan Wednesday unanimously approved the deed of conditional sale and lease contract for AyalaLand’s takeover of the 7.7-hectare property.
Ernie Villa of the Commission on Audit who appeared at the SP regular session with other members of the Committee on Awards and Disposal of Real Properties, said the committee members acted in accordance with the COA procedures.
AyalaLand said it is investing at least P6 billion for the development of the 7.7 hectares of government property.
SMPHI said it entered a higher bid than Ayala in the July 7 bidding and should be declared the rightful winner.
The governor, on the other hand, said the July 7 bidding was declared a failure because both parties entered bids below the floor price of the land as approved by the COA.
Both parties were invited to a negotiated bidding on July 15 but SMPHI did not join leading to the awarding of the property to Ayala, the governor said.
SMPHI charged the governor with being biased in favor of Ayala.
The hearing of the main case filed by SMPHI against the governor, and members of the province's committee on awards and SP before the Bacolod Regional Trial Branch 50 for certiorari is also proceeding.
Libutan yesterday ordered the SP members who were included in SMPHI’s amended petition to submit their comments in 10 days after which SMPHI will be given five days to reply, provincial lawyer Maryann Manayon said yesterday.
The judge will then assess if there is basis to proceed with the hearing, or to just ask the parties to submit their memoranda so a decision can be made, she added.
Libutan earlier denied two TROs sought by SMPHI prompting it to go to the CA.
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Friday, April 29, 2011
Audit commission dips fingers into AFP intelligence fund
INTELLIGENCE FUNDS of the Armed Forces of the Philippines (AFP) will now be subject to state audit, the Commission on Audit (CoA) chief yesterday said, setting aside a long-established practice of keeping auditors at bay when it comes to accounting the budgetary item.
"We are set to meet with AFP officials [yesterday afternoon] to discuss the audit of the intelligence funds," Maria Gracia Pulido-Tan, CoA chairperson, said in a press conference in Quezon City yesterday.
The audit comes after the AFP voluntarily opened the funds to scrutiny. A Department of National Defense panel investigating alleged corruption in the military has recommended CoA review of the fund.
Intelligence and confidential funds are not subject to regular audit requirements.
Ms. Tan said she will personally lead an audit team to ensure confidentiality.
"We will keep this confidential. People of trust and confidence will be responsible for the audit," she said.
She also commended the AFP "for coming out with expression of support. We hope other agencies will be like that. It will make our jobs easier.
In a related development, House Bill 4127, or the proposed Intelligence and Confidential Funds Transparency Act, has been filed by Bayan Muna party-list Rep. Teodoro A. Casiño, Jr.
"[Lack of audit on intelligence funds] has rendered these funds open to the misuse and abuse of those who are charged with the utilization of these funds granted to numerous government agencies, usually the generals closest to the Commander-in-Chief," he said in the bill’s explanatory note.
source
"We are set to meet with AFP officials [yesterday afternoon] to discuss the audit of the intelligence funds," Maria Gracia Pulido-Tan, CoA chairperson, said in a press conference in Quezon City yesterday.
The audit comes after the AFP voluntarily opened the funds to scrutiny. A Department of National Defense panel investigating alleged corruption in the military has recommended CoA review of the fund.
Intelligence and confidential funds are not subject to regular audit requirements.
Ms. Tan said she will personally lead an audit team to ensure confidentiality.
"We will keep this confidential. People of trust and confidence will be responsible for the audit," she said.
She also commended the AFP "for coming out with expression of support. We hope other agencies will be like that. It will make our jobs easier.
In a related development, House Bill 4127, or the proposed Intelligence and Confidential Funds Transparency Act, has been filed by Bayan Muna party-list Rep. Teodoro A. Casiño, Jr.
"[Lack of audit on intelligence funds] has rendered these funds open to the misuse and abuse of those who are charged with the utilization of these funds granted to numerous government agencies, usually the generals closest to the Commander-in-Chief," he said in the bill’s explanatory note.
source
Audit commission dips fingers into AFP intelligence fund
INTELLIGENCE FUNDS of the Armed Forces of the Philippines (AFP) will now be subject to state audit, the Commission on Audit (CoA) chief yesterday said, setting aside a long-established practice of keeping auditors at bay when it comes to accounting the budgetary item.
"We are set to meet with AFP officials [yesterday afternoon] to discuss the audit of the intelligence funds," Maria Gracia Pulido-Tan, CoA chairperson, said in a press conference in Quezon City yesterday.
The audit comes after the AFP voluntarily opened the funds to scrutiny. A Department of National Defense panel investigating alleged corruption in the military has recommended CoA review of the fund.
Intelligence and confidential funds are not subject to regular audit requirements.
Ms. Tan said she will personally lead an audit team to ensure confidentiality.
"We will keep this confidential. People of trust and confidence will be responsible for the audit," she said.
She also commended the AFP "for coming out with expression of support. We hope other agencies will be like that. It will make our jobs easier.
In a related development, House Bill 4127, or the proposed Intelligence and Confidential Funds Transparency Act, has been filed by Bayan Muna party-list Rep. Teodoro A. Casiño, Jr.
"[Lack of audit on intelligence funds] has rendered these funds open to the misuse and abuse of those who are charged with the utilization of these funds granted to numerous government agencies, usually the generals closest to the Commander-in-Chief," he said in the bill’s explanatory note.
source
"We are set to meet with AFP officials [yesterday afternoon] to discuss the audit of the intelligence funds," Maria Gracia Pulido-Tan, CoA chairperson, said in a press conference in Quezon City yesterday.
The audit comes after the AFP voluntarily opened the funds to scrutiny. A Department of National Defense panel investigating alleged corruption in the military has recommended CoA review of the fund.
Intelligence and confidential funds are not subject to regular audit requirements.
Ms. Tan said she will personally lead an audit team to ensure confidentiality.
"We will keep this confidential. People of trust and confidence will be responsible for the audit," she said.
She also commended the AFP "for coming out with expression of support. We hope other agencies will be like that. It will make our jobs easier.
In a related development, House Bill 4127, or the proposed Intelligence and Confidential Funds Transparency Act, has been filed by Bayan Muna party-list Rep. Teodoro A. Casiño, Jr.
"[Lack of audit on intelligence funds] has rendered these funds open to the misuse and abuse of those who are charged with the utilization of these funds granted to numerous government agencies, usually the generals closest to the Commander-in-Chief," he said in the bill’s explanatory note.
source
COA to put up citizens’ desk
QUEZON CITY, April 27 (PIA) – The new chair of the Commission on Audit is putting up a feedback mechanism system in the commission including a citizens’ desk to partner with the Filipino masses to combat graft and corrupt practices in government.
COA Chief Maria Gracia Pulido-tan said the desk’s structure is still being mapped-out, but pointed out that it will act on complaints with focus on deliverables. “This will be part of the feedback mechanism wherein yung mga sumbong ay may mangyayari (complaints will definitely find corresponding action)," she said.
The citizens’ desk will be the peoples’ platform for complaints and valuable information on how government money is being spent as well as suggestions for effective measures and actions. The chair assures that the citizens’ desk will act on these information minus the “fear of getting harassed” for “tipsters”.
Aside from this, Pulido-Tan is also focused on the problem of overstaying auditors in various offices of the government. She said, based on the existing COA rule, officials occupying the Director position and higher are given one to two years of assignment tenure, while frontliners – or ordinary auditors – are allowed to stay in their agency assignment for five to 10 years.
“We will look into this because I think there is a discrepancy in the schedule of office assignment tenure,” she said. On her first day of office, Pulido-Tan has already asked for a report on COA personnel assignment which she expects to receive next week.
With the enormous amount of work at COA, she wished time is “more than 24 hours in a day” to accomplish it. She also denied pressures, coming from forces inside or outside COA, saying, “I don’t feel pressured to perform. I give my job my best shot.”
Pulido-Tan revealed that she spent a prayerful two weeks contemplating on accepting the position. In her silent moments, she shared, she realized she is being led by God to COA to “walk her thoughts” in public service, inspite knowing that she would loose her privacy and earn less money.
“I am used with ‘daang matuwid’ in private practice. But I know I needed to walk my thoughts. And, God has showed me the way,” she said. (RJB/DBNV-PIA NCR)
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COA Chief Maria Gracia Pulido-tan said the desk’s structure is still being mapped-out, but pointed out that it will act on complaints with focus on deliverables. “This will be part of the feedback mechanism wherein yung mga sumbong ay may mangyayari (complaints will definitely find corresponding action)," she said.
The citizens’ desk will be the peoples’ platform for complaints and valuable information on how government money is being spent as well as suggestions for effective measures and actions. The chair assures that the citizens’ desk will act on these information minus the “fear of getting harassed” for “tipsters”.
Aside from this, Pulido-Tan is also focused on the problem of overstaying auditors in various offices of the government. She said, based on the existing COA rule, officials occupying the Director position and higher are given one to two years of assignment tenure, while frontliners – or ordinary auditors – are allowed to stay in their agency assignment for five to 10 years.
“We will look into this because I think there is a discrepancy in the schedule of office assignment tenure,” she said. On her first day of office, Pulido-Tan has already asked for a report on COA personnel assignment which she expects to receive next week.
With the enormous amount of work at COA, she wished time is “more than 24 hours in a day” to accomplish it. She also denied pressures, coming from forces inside or outside COA, saying, “I don’t feel pressured to perform. I give my job my best shot.”
Pulido-Tan revealed that she spent a prayerful two weeks contemplating on accepting the position. In her silent moments, she shared, she realized she is being led by God to COA to “walk her thoughts” in public service, inspite knowing that she would loose her privacy and earn less money.
“I am used with ‘daang matuwid’ in private practice. But I know I needed to walk my thoughts. And, God has showed me the way,” she said. (RJB/DBNV-PIA NCR)
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New COA chief says people's participation a must to initiate reform
QUEZON CITY, April 27 (PIA) -- Newly appointed Commission of Audit (COA) chairperson Atty. Ma. Gracia M. Pulido-Tan on Wednesday said that she is seeking to institutionalize public participation to strengthen the agency's capability in enforcing accountability in government.
According to Tan, who was a guest at the Communications and Exchange Forum with members of media at the Philippine Information Agency in Quezon City, it is important to recognize the people’s role in ensuring that their taxes go to appropriate projects and programs of government in line with the Aquino administration's principle of transparency.
"We have to include everyone, everyone has a stake. Pati nga mga mamamayan gusto kong isama sa proseso, kasi COA is a constitutional body, it is the COA of the people," she said as she cited the people’s participation in the affairs of the state as enshrined in our Constitution.
As she vowed to beef up COA's capability through reforms and more effective audit and accounting systems, Tan said that part of her plan is to create citizen's desks where the public can go and file their complaints or share with COA any valuable information about any alleged anomaly in a particular government agency.
She likewise, assured would-be complainants and whistleblowers that their identities will be kept secured and protected from any form of harassment, adding that COA will promptly act on any complaint filed.
"Isa sa aking plano ay ang magtatag ng citizen's desk kung saan pwede nilang dalhin ang kanilang mga nalalaman o ang kanilang mga kahilingan na wala silang fear na hindi sila maha-harass at the same time they can expect that we can take action," she said.
Although Tan was appointed by President Aquino Monday last week, she said that she will also look and evaluate all COA resident auditors assigned in different government agencies and immediately order for a reshuffle if she finds out that an auditor has "overstayed" his length of service in an agency.
"Hindi magandang nagtatagal ang isang auditor sa ahensya," she said. (It does not bode well for the agency to have an auditor overstay in an officea) (RJB/JCP-PIA NCR)
source
According to Tan, who was a guest at the Communications and Exchange Forum with members of media at the Philippine Information Agency in Quezon City, it is important to recognize the people’s role in ensuring that their taxes go to appropriate projects and programs of government in line with the Aquino administration's principle of transparency.
"We have to include everyone, everyone has a stake. Pati nga mga mamamayan gusto kong isama sa proseso, kasi COA is a constitutional body, it is the COA of the people," she said as she cited the people’s participation in the affairs of the state as enshrined in our Constitution.
As she vowed to beef up COA's capability through reforms and more effective audit and accounting systems, Tan said that part of her plan is to create citizen's desks where the public can go and file their complaints or share with COA any valuable information about any alleged anomaly in a particular government agency.
She likewise, assured would-be complainants and whistleblowers that their identities will be kept secured and protected from any form of harassment, adding that COA will promptly act on any complaint filed.
"Isa sa aking plano ay ang magtatag ng citizen's desk kung saan pwede nilang dalhin ang kanilang mga nalalaman o ang kanilang mga kahilingan na wala silang fear na hindi sila maha-harass at the same time they can expect that we can take action," she said.
Although Tan was appointed by President Aquino Monday last week, she said that she will also look and evaluate all COA resident auditors assigned in different government agencies and immediately order for a reshuffle if she finds out that an auditor has "overstayed" his length of service in an agency.
"Hindi magandang nagtatagal ang isang auditor sa ahensya," she said. (It does not bode well for the agency to have an auditor overstay in an officea) (RJB/JCP-PIA NCR)
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COA to review residency of state auditors
MANILA, Philippines - Newly-appointed Commission on Audit (COA) Chairperson Ma. Gracia Pulido-Tan will look into the residency of its auditors as most of them are already overstaying in their posts.
Under COA rules, a director-level auditor can only stay in a government agency for 1-3 years while a resident auditor's term is 5-10 years.
Tan has already asked for a list of auditors and how long they have stayed in their current posts.
"We can shorten the allowed period. Gusto ko kasi mas definite yung tenure. Minsan kasi, kaya nagtatagal dahil may fields of specialization at hindi naman lahat ay may ganong capability,” she said.
Nonetheless, she said “we will review the residency of auditors. Hindi kasi maganda na nagtatagal sa isang agency lang."
Tan said she also plans to come up with a citizen's desk where the public can inform the agency of any anomalous transaction that needs to be investigated.
"Malaki ang magagawa ng mga mamamayan,sa citizen's desk pwede nilang isumbong ang mga nalalaman nila na katiwalian para maimbestigahan namin and they can expect that we will take action."
Tan however declined to give more details as the proposal is still being studied.
source
Under COA rules, a director-level auditor can only stay in a government agency for 1-3 years while a resident auditor's term is 5-10 years.
Tan has already asked for a list of auditors and how long they have stayed in their current posts.
"We can shorten the allowed period. Gusto ko kasi mas definite yung tenure. Minsan kasi, kaya nagtatagal dahil may fields of specialization at hindi naman lahat ay may ganong capability,” she said.
Nonetheless, she said “we will review the residency of auditors. Hindi kasi maganda na nagtatagal sa isang agency lang."
Tan said she also plans to come up with a citizen's desk where the public can inform the agency of any anomalous transaction that needs to be investigated.
"Malaki ang magagawa ng mga mamamayan,sa citizen's desk pwede nilang isumbong ang mga nalalaman nila na katiwalian para maimbestigahan namin and they can expect that we will take action."
Tan however declined to give more details as the proposal is still being studied.
source
COA to audit AFP funds
MANILA, Philippines - Newly-installed Commission on Audit Chairperson Maria Gracia Pulido-Tan said the commission will soon start an in-depth investigation into the anomalous funds in the Armed Forces of the Philippines (AFP).
The widespread corruption there was first revealed by auditor Heidi Mendoza, who was also recently appointed as COA commissioner.
Meanwhile, COA auditors are ready to testify in the trial for the ouster of Ombudsman Merceditas Gutierrez.
She said the whole commission fully supports its state auditors, some of whom will have to face the Senate in May.
She said it is the duty of the commission to fight corruption, and it is already a usual process that auditors face trial and serve as witnesses.
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The widespread corruption there was first revealed by auditor Heidi Mendoza, who was also recently appointed as COA commissioner.
Meanwhile, COA auditors are ready to testify in the trial for the ouster of Ombudsman Merceditas Gutierrez.
She said the whole commission fully supports its state auditors, some of whom will have to face the Senate in May.
She said it is the duty of the commission to fight corruption, and it is already a usual process that auditors face trial and serve as witnesses.
source
COA eyes audit of OWWA fund diversion
MANILA, Philippines - Newly-installed Commission on Audit Chairperson Ma. Gracia Pulido-Tan is looking at the possibility of conducting a new audit on the P530 million Overseas Workers Welfare Administration (OWWA) funds allegedly diverted for the funding of former President Gloria Macapagal Arroyo’s 2004 campaign.
In a press conference, Tan said she has yet to determine if the said fund was already covered by the audit previously done in 2006.
She admitted that the audit then did not indicate that the transfers were anomalous.
Former Solicitor General Francisco “Frank” Chavez on Tuesday filed plunder charges against the former President, former executive secretary Alberto Romulo, Civil Service Commission (CSC) Chairman Francisco Duque III and former administrator Virgilio Angelo of the Overseas Workers Welfare Administration (OWWA) of qualified theft, graft and corruption, and violations of the Constitution, Revised Penal Code and the Omnibus Election Code.
Arroyo was accused of diverting about P530 million in OWWA funds to her 2004 presidential campaign.
Chavez said Executive Order 182, issued in 2003, allowed for the transfer of more than P530 million in OWWA funds to Philippine Health Insurance Corp. (PhilHealth). He claimed Arroyo was then able to distribute PhilHealth cards before the presidential elections.
"Kung yung paglipat ng funds from one agency to another, hindi naman yun kasalanan kasi it was covered by an EO coming from former President Arroyo. The President has broad plenary powers,” Tan admitted.
“Ngayon, kung ang question ay kung labag ba yun sa mandate ng OWWA, that is beyond our mandate. Yun circumstances is now a part of a court case. Hindi ko na masasagot iyon,” she added.
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In a press conference, Tan said she has yet to determine if the said fund was already covered by the audit previously done in 2006.
She admitted that the audit then did not indicate that the transfers were anomalous.
Former Solicitor General Francisco “Frank” Chavez on Tuesday filed plunder charges against the former President, former executive secretary Alberto Romulo, Civil Service Commission (CSC) Chairman Francisco Duque III and former administrator Virgilio Angelo of the Overseas Workers Welfare Administration (OWWA) of qualified theft, graft and corruption, and violations of the Constitution, Revised Penal Code and the Omnibus Election Code.
Arroyo was accused of diverting about P530 million in OWWA funds to her 2004 presidential campaign.
Chavez said Executive Order 182, issued in 2003, allowed for the transfer of more than P530 million in OWWA funds to Philippine Health Insurance Corp. (PhilHealth). He claimed Arroyo was then able to distribute PhilHealth cards before the presidential elections.
"Kung yung paglipat ng funds from one agency to another, hindi naman yun kasalanan kasi it was covered by an EO coming from former President Arroyo. The President has broad plenary powers,” Tan admitted.
“Ngayon, kung ang question ay kung labag ba yun sa mandate ng OWWA, that is beyond our mandate. Yun circumstances is now a part of a court case. Hindi ko na masasagot iyon,” she added.
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COA: Nothing wrong with OWWA fund transfer, but…
MANILA, Philippines - There may be nothing wrong with fund transfers from one government unit to another, but a new audit is a must to check whether these were used for its intended purpose.
In an interview with ANC, Commission on Audit Chairperson Ma. Gracia Pulido-Tan said the transfer of P530 million in Overseas Workers Welfare Administration (OWWA) funds to Philippine Health Insurance Corp. (PhilHealth) is not an offense but “as to attendant circumstances of what happened to that transfer is a different story.”
Former Solicitor General Francisco “Frank” Chavez on Tuesday filed plunder complaints against the former President, former executive secretary Alberto Romulo, Civil Service Commission (CSC) Chairman Francisco Duque III and former administrator Virgilio Angelo of the Overseas Workers Welfare Administration (OWWA) of qualified theft, graft and corruption, and violations of the Constitution, Revised Penal Code and the Omnibus Election Code.
Arroyo was accused of diverting about P530 million in OWWA funds to her 2004 presidential campaign.
Chavez said Executive Order 182, issued in 2003, allowed for the transfer of more than P530 million in OWWA funds to Philippine Health Insurance Corp. (PhilHealth). He claimed Arroyo was then able to distribute PhilHealth cards before the presidential elections.
Tan said the original COA report was specific on the fact that the fund transfer was done in 2005. This will run contrary to claims by Chavez that it was used for the 2004 campaign.
She said, however, “I’m looking for the audit team who took care of PhilHealth during that period to find out if there was any audit made [and] to check how the money transferred was spent, if at all.”
Tan said the EO was specific on how the funds will be used and “we need to see if that was followed.”
source
In an interview with ANC, Commission on Audit Chairperson Ma. Gracia Pulido-Tan said the transfer of P530 million in Overseas Workers Welfare Administration (OWWA) funds to Philippine Health Insurance Corp. (PhilHealth) is not an offense but “as to attendant circumstances of what happened to that transfer is a different story.”
Former Solicitor General Francisco “Frank” Chavez on Tuesday filed plunder complaints against the former President, former executive secretary Alberto Romulo, Civil Service Commission (CSC) Chairman Francisco Duque III and former administrator Virgilio Angelo of the Overseas Workers Welfare Administration (OWWA) of qualified theft, graft and corruption, and violations of the Constitution, Revised Penal Code and the Omnibus Election Code.
Arroyo was accused of diverting about P530 million in OWWA funds to her 2004 presidential campaign.
Chavez said Executive Order 182, issued in 2003, allowed for the transfer of more than P530 million in OWWA funds to Philippine Health Insurance Corp. (PhilHealth). He claimed Arroyo was then able to distribute PhilHealth cards before the presidential elections.
Tan said the original COA report was specific on the fact that the fund transfer was done in 2005. This will run contrary to claims by Chavez that it was used for the 2004 campaign.
She said, however, “I’m looking for the audit team who took care of PhilHealth during that period to find out if there was any audit made [and] to check how the money transferred was spent, if at all.”
Tan said the EO was specific on how the funds will be used and “we need to see if that was followed.”
source
COA's Heidi to pork barrel recipients: Beware
WASHINGTON – Pork barrel recipients in the Philippines: be careful, be very careful.
Heidi Mendoza, newly appointed commissioner said the Commission on Audit (COA) is putting into place mechanisms to examine the pork barrel allocations of members of Congress to bring transparency to a process that has been mired in corruption almost from its inception.
She declined to give details or discuss when the audits would start.
Mendoza, invited to attend World Bank discussions on corruption, told a forum attended by mostly Filipino bank employees that the COA was planning to set up a legal fund to take care of the legal expenses of government auditors so as not to inhibit them from doing their jobs.
She said as part of concerted efforts by President Aquino’s administration to fight corruption, a bill has been filed in Congress to strengthen the Anti-Money Laundering Council (AMLC) to give it more teeth to investigate and prosecute money laundering offenses.
President Aquino appointed Mendoza as COA commissioner on April 5, the same post she resigned from in 2005 in frustration over the glacial pace of the corruption investigation against former military comptroller Carlos Garcia.
She will take her oath of office on May 23 for a term expiring in February 2018.
A press statement issued by the organizers of the World Bank discussion on “Effective auditing as the bane of grand corruption” described her as a career public official who works tirelessly to identify and root out corruption.
Unable to pursue the case (against Garcia) through the COA, she spoke out to the public, risking her life and career, and her testimony ultimately led to formal charges being filed against Garcia, the statement said.
Mendoza was greeted enthusiastically by World Bank employees when she walked into the conference room accompanied by Sheila Coronel, professor of Investigative Journalism at Columbia University and former executive director of the Philippine Center for Investigative Journalism.
“Mabuhay ka,” shouted the Pinoys.
Mendoza spoke of the challenges and difficulties and temptations that have faced her over the years in her battle against corruption.
In the early 1990s, she said, during an audit of the governor of the autonomous region of Mindanao, she was offered half-a-million pesos for every time she did not attend a court hearing.
Before flying to Mindanao she was told she would either end up dead or become rich.
“I was not given the opportunity of choosing an option,” she said in a light vein.
She spoke of the numerous times she and her family had to move house, of the difficulty of traveling with six bodyguards and of the treachery of people “I thought had my back.”
source
Heidi Mendoza, newly appointed commissioner said the Commission on Audit (COA) is putting into place mechanisms to examine the pork barrel allocations of members of Congress to bring transparency to a process that has been mired in corruption almost from its inception.
She declined to give details or discuss when the audits would start.
Mendoza, invited to attend World Bank discussions on corruption, told a forum attended by mostly Filipino bank employees that the COA was planning to set up a legal fund to take care of the legal expenses of government auditors so as not to inhibit them from doing their jobs.
She said as part of concerted efforts by President Aquino’s administration to fight corruption, a bill has been filed in Congress to strengthen the Anti-Money Laundering Council (AMLC) to give it more teeth to investigate and prosecute money laundering offenses.
President Aquino appointed Mendoza as COA commissioner on April 5, the same post she resigned from in 2005 in frustration over the glacial pace of the corruption investigation against former military comptroller Carlos Garcia.
She will take her oath of office on May 23 for a term expiring in February 2018.
A press statement issued by the organizers of the World Bank discussion on “Effective auditing as the bane of grand corruption” described her as a career public official who works tirelessly to identify and root out corruption.
Unable to pursue the case (against Garcia) through the COA, she spoke out to the public, risking her life and career, and her testimony ultimately led to formal charges being filed against Garcia, the statement said.
Mendoza was greeted enthusiastically by World Bank employees when she walked into the conference room accompanied by Sheila Coronel, professor of Investigative Journalism at Columbia University and former executive director of the Philippine Center for Investigative Journalism.
“Mabuhay ka,” shouted the Pinoys.
Mendoza spoke of the challenges and difficulties and temptations that have faced her over the years in her battle against corruption.
In the early 1990s, she said, during an audit of the governor of the autonomous region of Mindanao, she was offered half-a-million pesos for every time she did not attend a court hearing.
Before flying to Mindanao she was told she would either end up dead or become rich.
“I was not given the opportunity of choosing an option,” she said in a light vein.
She spoke of the numerous times she and her family had to move house, of the difficulty of traveling with six bodyguards and of the treachery of people “I thought had my back.”
source
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