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.
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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.
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Showing posts with label coa audit. Show all posts
Showing posts with label coa audit. Show all posts
Tuesday, August 16, 2011
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.
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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.”
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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
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)
source
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)
source
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)
source
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.
source
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.
source
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
Thursday, August 6, 2009
Govt should be grateful for excess payments
By Marian Z. Codilla
Cebu Daily News
CEBU City Mayor Tomas Osmeña voiced his displeasure yesterday over the Commission on Audit (COA) assessment that the city exceeded its debt payments by more than P700 million or above the 20-percent ceiling allowed for its debt payments.
He said the national government should be happy rather than be critical of the city's payments for the loan it procured to purchase the South Road Properties (SRP).
“It's not that we were throwing money. We are even helping the national government. If we don't pay (the loan), we will lose the 300 hectare (property in the SRP). We are not paying a private bank. The money went to the national government,” Osmeña said.
The COA's audit report on Cebu City caused Capitol officials to challenge the agency to substantiate its findings in light of Osmeña's claim that the city has a budget surplus of P250 million.
Capitol consultant Rory Jon Sepulveda said that based on COA report, the city government was wrong because it didn't allocate a budget for loan interests. “I find that hard to believe because the mayor is a financial analyst),” he said.
The 2008 audit report stated that the Cebu City government failed to pay interest on its SRP loan number 2 amounting to P169.9 million which accumulated from 2004 to 2007.
As a result, COA said loan number 2 was converted to loan number 3 which would then be penalized with additional interest.
Osmeña said the national government through the Land Bank of the Philippines (LBP) gets three percent of the city's total loan payments while the Japanese government collects only 2.7 percent interest.
Of the three percent, the LBP collects two percent and the Department of Finance gets one percent of the loan payments.
Osmeña said the awards the city government received were proofs that it didn't sacrifice the delivery of services and programs to the city residents.
“We have the best malnutrition program in the country. We have the best lupon in the country. Our dengue cases has reduced. I find that deplorable. We increased our allocation to the Cebu City Medical Center,” he said.
Osmeña also said the COA reminded them last year to keep a guest list of all the events the city sponsored with their discretionary funds since they only kept receipts.
The COA said P944,044 in discretionary expenses from January to May 2008 were unaccounted for.
Sepulveda said the lapse committed by Osmeña was tantamount to dereliction of duty and could be filed against him in court.
He said the Ombudsman can initiate an investigation on Cebu City's finances.
He said he found it hard to believe that the city failed to allocate payments for its loan interests.
“Rather than bragging about his skin and bones budget, Osmeña should add a little flesh to it so they can settle their loan obligations,” Sepulveda said.
Sepulveda also said the “city is going underwater” due to the mayor's fiscal mismanagement.
He was referring to Osmeña's remark about the province's proposed school in Naga town which was supposedly located in a property whose portions were submerged in water.
source
Cebu LGU should refund excess payments.
Cebu Daily News
CEBU City Mayor Tomas Osmeña voiced his displeasure yesterday over the Commission on Audit (COA) assessment that the city exceeded its debt payments by more than P700 million or above the 20-percent ceiling allowed for its debt payments.
He said the national government should be happy rather than be critical of the city's payments for the loan it procured to purchase the South Road Properties (SRP).
“It's not that we were throwing money. We are even helping the national government. If we don't pay (the loan), we will lose the 300 hectare (property in the SRP). We are not paying a private bank. The money went to the national government,” Osmeña said.
The COA's audit report on Cebu City caused Capitol officials to challenge the agency to substantiate its findings in light of Osmeña's claim that the city has a budget surplus of P250 million.
Capitol consultant Rory Jon Sepulveda said that based on COA report, the city government was wrong because it didn't allocate a budget for loan interests. “I find that hard to believe because the mayor is a financial analyst),” he said.
The 2008 audit report stated that the Cebu City government failed to pay interest on its SRP loan number 2 amounting to P169.9 million which accumulated from 2004 to 2007.
As a result, COA said loan number 2 was converted to loan number 3 which would then be penalized with additional interest.
Osmeña said the national government through the Land Bank of the Philippines (LBP) gets three percent of the city's total loan payments while the Japanese government collects only 2.7 percent interest.
Of the three percent, the LBP collects two percent and the Department of Finance gets one percent of the loan payments.
Osmeña said the awards the city government received were proofs that it didn't sacrifice the delivery of services and programs to the city residents.
“We have the best malnutrition program in the country. We have the best lupon in the country. Our dengue cases has reduced. I find that deplorable. We increased our allocation to the Cebu City Medical Center,” he said.
Osmeña also said the COA reminded them last year to keep a guest list of all the events the city sponsored with their discretionary funds since they only kept receipts.
The COA said P944,044 in discretionary expenses from January to May 2008 were unaccounted for.
Sepulveda said the lapse committed by Osmeña was tantamount to dereliction of duty and could be filed against him in court.
He said the Ombudsman can initiate an investigation on Cebu City's finances.
He said he found it hard to believe that the city failed to allocate payments for its loan interests.
“Rather than bragging about his skin and bones budget, Osmeña should add a little flesh to it so they can settle their loan obligations,” Sepulveda said.
Sepulveda also said the “city is going underwater” due to the mayor's fiscal mismanagement.
He was referring to Osmeña's remark about the province's proposed school in Naga town which was supposedly located in a property whose portions were submerged in water.
source
Cebu LGU should refund excess payments.
Saturday, August 1, 2009
COA identifies top execs with excessive claims charged to Capitol
By Florence F. Hibionada
Travel expenses of 13 top personalities of the Iloilo Provincial Government made it in this year’s shortlist of unconscionable and excessive claims.
All disallowed by the Commission On Audit (COA) with full refund of the taxpayer’s money ordered, the list included the governor’s daughter Nielette Tupas Balleza and Capitol lawyer Joenar Pueblo.
Two doctors also made it in the list, Dr. Roberto Castronuevo and Dr. Jeremiah Obañana with Castronuevo even discovered to have tampered the Official Receipts (ORs). Castronuevo and Balleza have both returned the Capitol’s money yet COA in its latest Annual Audit Report (AAR) still identified the duo as amongst the 13 with disallowed travel expenses. It was not clear if with the restitution made the two are now clear of any liabilities.
While expenses for official trips may be charged to the Iloilo Provincial Government, COA noted how limitations are set by law. And with cash advances granted to cover said trips, proper liquidations are likewise required.
Random audit made on the travel of the 13 showed violations ranging from excessive claims to tampering of ORs.
“There are instances when official receipts for hotel accommodation presented are tampered. Confirmation letters inquiring as to the authenticity and validity of the data in said official receipts were sent to the management of the hotel and confirmed official receipts differ from that submitted to support the Liquidation Report. Such act of a public officer is deemed unconscionable and should be properly dealt with by the head of agency,” the COA wrote. “Post-audit of selected vouchers and liquidation reports also reveal excessive claims. Receipts for meals and hotel accommodation presented exceeded the daily limit for such expenses… The travel law clearly states that limits are set for daily expenses (not weekly or monthly).”
As further pointed out by COA, regardless of rank and destination the amount allowed is P800 per day with claims in excess needing special authority. Any amount beyond P800 per day must have a certification from the head of office that the excess is “absolutely necessary in the performance of an assignment and presentation of bills and receipts.”
“We recommend that the Province exercise prudence in granting reimbursements for expenses for out of town travels,” while adding that any and all claims must duly be supported with receipts.
Those with unpaid disallowed travels included Provincial Librarian Noemi Viejon, Mila Layog of the Provincial Cooperative Office, acting Provincial Treasurer Corazon Estelita Beloria, Social Welfare and Development Officer Neneth Pador and Health Office’s Judy Dumayas among others.
As COA pointed out, “unconscionable expenditures” signifies without acknowledge or sense of what is right, reasonable and just and not guided or restrained by conscience. These are unreasonable and immoderate expenses incurred in violation of ethics and morality by one who does not have any feeling of guilt for the violation.”
TNT learned that the questioned Capitol executives were granted authority of P2,500 daily allowance for department heads, P2,000 for assistant department heads and P1,500 for hospital chiefs.
The disbursement vouchers checked though showed meals and incidental expenses as grossly excessive, exorbitant and too lavish.
Said matter was first reported in January this year with the earlier Audit Observation Memorandum (AOM) issued.
For instance, one receipt for one meal of one Capitol executive showed a bill of P2,000. COA was direct with its message then to the governor, “Such can be considered quite excessive for a meal of an individual.”
And there was more.
“Further, two (2) ORs show that personal effects and a laptop accessory are among the expenses reimbursed,” the COA noted.
And more reminders in the AOM to the governor calling his attention to government regulations aimed at preventing excessive and extravagant expenditures.
The ‘travel allowance AOM’ cited Section 164, Article 2 of the Government Accounting and Auditing Manual defining excessive expenditures as “unreasonable expense or expenses incurred at an immoderate quantity or exorbitant price. It also includes expenses which exceed what is usual or proper as well as expenses which are unreasonably high and beyond just measure or amount. They also include expenses in excess of reasonable limits.”
COA likewise reminded Tupas, “the term ‘extravagant expenditures’ signifies those incurred without restraint, judiciousness and economy. Extravagant expenditures exceed the bounds of propriety. These expenditures are immoderate, prodigal, lavish, luxurious, wasteful, grossly excessive and injudicious.”
source
Travel expenses of 13 top personalities of the Iloilo Provincial Government made it in this year’s shortlist of unconscionable and excessive claims.
All disallowed by the Commission On Audit (COA) with full refund of the taxpayer’s money ordered, the list included the governor’s daughter Nielette Tupas Balleza and Capitol lawyer Joenar Pueblo.
Two doctors also made it in the list, Dr. Roberto Castronuevo and Dr. Jeremiah Obañana with Castronuevo even discovered to have tampered the Official Receipts (ORs). Castronuevo and Balleza have both returned the Capitol’s money yet COA in its latest Annual Audit Report (AAR) still identified the duo as amongst the 13 with disallowed travel expenses. It was not clear if with the restitution made the two are now clear of any liabilities.
While expenses for official trips may be charged to the Iloilo Provincial Government, COA noted how limitations are set by law. And with cash advances granted to cover said trips, proper liquidations are likewise required.
Random audit made on the travel of the 13 showed violations ranging from excessive claims to tampering of ORs.
“There are instances when official receipts for hotel accommodation presented are tampered. Confirmation letters inquiring as to the authenticity and validity of the data in said official receipts were sent to the management of the hotel and confirmed official receipts differ from that submitted to support the Liquidation Report. Such act of a public officer is deemed unconscionable and should be properly dealt with by the head of agency,” the COA wrote. “Post-audit of selected vouchers and liquidation reports also reveal excessive claims. Receipts for meals and hotel accommodation presented exceeded the daily limit for such expenses… The travel law clearly states that limits are set for daily expenses (not weekly or monthly).”
As further pointed out by COA, regardless of rank and destination the amount allowed is P800 per day with claims in excess needing special authority. Any amount beyond P800 per day must have a certification from the head of office that the excess is “absolutely necessary in the performance of an assignment and presentation of bills and receipts.”
“We recommend that the Province exercise prudence in granting reimbursements for expenses for out of town travels,” while adding that any and all claims must duly be supported with receipts.
Those with unpaid disallowed travels included Provincial Librarian Noemi Viejon, Mila Layog of the Provincial Cooperative Office, acting Provincial Treasurer Corazon Estelita Beloria, Social Welfare and Development Officer Neneth Pador and Health Office’s Judy Dumayas among others.
As COA pointed out, “unconscionable expenditures” signifies without acknowledge or sense of what is right, reasonable and just and not guided or restrained by conscience. These are unreasonable and immoderate expenses incurred in violation of ethics and morality by one who does not have any feeling of guilt for the violation.”
TNT learned that the questioned Capitol executives were granted authority of P2,500 daily allowance for department heads, P2,000 for assistant department heads and P1,500 for hospital chiefs.
The disbursement vouchers checked though showed meals and incidental expenses as grossly excessive, exorbitant and too lavish.
Said matter was first reported in January this year with the earlier Audit Observation Memorandum (AOM) issued.
For instance, one receipt for one meal of one Capitol executive showed a bill of P2,000. COA was direct with its message then to the governor, “Such can be considered quite excessive for a meal of an individual.”
And there was more.
“Further, two (2) ORs show that personal effects and a laptop accessory are among the expenses reimbursed,” the COA noted.
And more reminders in the AOM to the governor calling his attention to government regulations aimed at preventing excessive and extravagant expenditures.
The ‘travel allowance AOM’ cited Section 164, Article 2 of the Government Accounting and Auditing Manual defining excessive expenditures as “unreasonable expense or expenses incurred at an immoderate quantity or exorbitant price. It also includes expenses which exceed what is usual or proper as well as expenses which are unreasonably high and beyond just measure or amount. They also include expenses in excess of reasonable limits.”
COA likewise reminded Tupas, “the term ‘extravagant expenditures’ signifies those incurred without restraint, judiciousness and economy. Extravagant expenditures exceed the bounds of propriety. These expenditures are immoderate, prodigal, lavish, luxurious, wasteful, grossly excessive and injudicious.”
source
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