Bogo “delinquent” in paying President’s Social Fund loan

The Commission on Audit observed that the Bogo treasurer’s office has done no effort to collect from recipients/beneficiaries amortization to loan worth P1 million granted in 2003 under the President’s Social Fund.

This observation was made when records reflected a minimal amount of collections in contrary to the Memorandum of Agreement signed by contracting parties.

In 2003, then municipality of Bogo extended loan assistance to small and medium-scale enterprises that amounted to P1.130 million, including the principal loan and interest, with at least 21 members of the people’s organization as beneficiaries.

After a verification was made, records showed that collections only reached P15,500. As of December 2006, the account has a collectible balance of P985,762.58.

Further, it was noted that the treasurer “did not collect nor send collection letters to loan beneficiaries despite the two-year period as stated in the agreement signed between the local government unit and the recipients.”

“Consequently, Bogo has been delinquent in its loan amortization to the President’s Social Fund of the Office of the President,” the commission report said.

Prior to this observation, it was found out that claims for monetization of terminal leave benefits of various officials and employees in Bogo worth P1 million were not duly supported with the required documents in contrary to Section 4 of Presidential Decree 1445.

COA said that Bogo violated Section 4 of PD 1445 when employees and officials claimed their benefits amounting to P1,496,311.94, but such claims against government funds were not supported with complete documentation.

The claims were not supported with application for leave, by each and every official and employee, duly signed by the Human Resource Management Officer specifying the total number of leave days monetized and their corresponding monthly salary as basis in the computation of amounts earned.

An audit observation memorandum was already issued to Bogo, but COA has not yet received any response to the query.

The commission instructed Bogo to require the concerned officials and employees to submit their duly approved application for leave. — Garry B. Lao/MEEV