COA suspends funds used for Talisay IT project

The Commission on Audit has issued four Notices of Suspension to the over P27 million worth of equipment purchases by the Talisay City government for its "Information Technology Project."

This after it found "deficiencies" in the Audit Observation Memoranda (AOM), three of which were dated December 21, 2004 while the other one was on February 9, 2005.

The suspension notices stated that there were no ordinances or resolutions supporting the disbursement of the P26,988,000 set aside for the project. The funds were disbursed through four executive orders issued by former Mayor Eduardo Gullas and Mayor Socrates Fernandez.

COA, through its legal and adjudication director Roy Ursal, bared the "persons responsible" for the deficiencies: Gullas, Fernandez, City Accountant Viluzminda Villarante, City Budget Officer Eduardo Mabunay, City Treasurer Emma Macuto, City Engineer Audie Bacasmas, the city's Bids and Awards Committee (BAC), and Marlon Alfonso of the POWERDERV Corporation.

The BAC, Gullas, Villarante, Mabunay, Macuto and Alfonso were implicated for the P8,500,000 deal used to purchase the Business Licensing Integration to Real Property Assessment, Personnel Information System and Automated Timekeeping System technologies without any ordinance for the fund realignment made thru an executive order signed by Gullas.

Another suspension notices were issued for the P613,440 and P10,086,560 appropriations for other technology purchases which reportedly have deficiencies involving the BAC, Macuto, Villarante, Mabunay, Bacasmas, Fernandez, and Alfonso.

The same persons were allegedly responsible for the questionable disbursement of P7,788,000 for another equipment purchase which reflected in the AOM dated February 9, 2005.

POWERDERV was the sole payee for the all the equipment purchased for the IT project.

"Prompt settlement of the above suspension is mandatory," said Ursal in the four suspension notices each dated February 27.

Those "responsible persons" were asked to submit within 90 days the ordinance, the Bidding and Eligibility documents, and other documents on the project.

Suspended items that are not settled within 90 days will become disallowance pursuant to Section 82 of Presidential Decree 1445 or Government Auditing Code of the Philippines, said Ursal.

The law carries imprisonment of "not more than 6 months and/or fine not exceeding P1,000.00" with no bail requirement.

Meanwhile, the City Council yesterday passed a resolution ratifying the realignment of funds made through the executive orders for the project.

The council defended the acts of Gullas and Fernandez in disbursing the funds without following the proper procedures since they "had resulted to the advantages and benefit of the city."

But Councilor Allan Bucao said those acts were tantamount to juggling of funds. He and Councilors Emilio Go and Inaki Jordana, who belong to the minority, did not vote in favor of the ordinance. - Liv G. Campo