COA: BFAR spent too much on gifts

CEBU , Philippines - Several financial transactions of the Bureau of Fisheries and Aquatic Resources-7 were questioned by the Commission on Audit, such as the expenses that it incurred for giveaways and “pasalubong” for visitors and BFAR officials in violation to the state audit procedures.

COA also said the BFAR officials committed irregular disbursements when they bought personal desktop computers without proper bidding, granted additional incentives to employees that are not allowed by law and failed to collect millions of pesos of fees in fishpond lease, among other violations.

Although the amount involved in the purchase of giveaways for visitors and BFAR officials only reached P44,234 state auditors said it should not have been done as it is contrary to the Government Accounting and Auditing Code, and COA Circular 85-55A.

The state auditors also discovered that there were excessive claims of traveling expenses that were granted to seven employees of the BFAR-7 regional office amounting to P12,280 when they went to Manila on official business.

The record showed that the seven BFAR employees were granted P2,840 per diem; P5,490 in taxi fare to and from the Mactan Cebu International Airport and P3,950 in taxi fare from the Ninoy Aquino International Airport to the BFAR-central office in Manila.

Meanwhile, COA also questioned the acts of the cashier of the BFAR for issuing several checks amounting to P110,545 with insufficient funds that resulted to bank charges in the amount of P16,800.

BFAR also disbursed P135,011 for the payments of its obligation to various suppliers, but these were made through special cash advance instead of checks resulting in the non-withholding of taxes amounting to P4,706.

It was noted that the purchase of supplies through special cash advances were made without canvass of at least three suppliers, thus depriving the government to avail of the most advantageous price.

COA reminded the BFAR officials to refrain from incurring unnecessary expenses and to cause the immediate refund by the concerned accountable officers and employees for the P44,234 that was spent for “pasalubong,” the P12,280 disallowed travel claims and the P16,800 for bank charges.

The payment of P195,000 for fish production incentives and P156,000 as rice allowance to personnel were also questioned by the state auditors because it was made without legal basis.

BFAR officials were asked to require the refund of the disbursed questionable incentives.

While the BFAR officials in Central Visayas have incurred several questionable payments last year, COA also found out that their collections last year had dropped to only P2,626,768 from P3,451,890 in 2007 and P4,232,809 in 2006.

One of the reasons for the decrease of collections is they failed to collect the annual fees of fishpond leases, but still they allowed the concerned to continue operate the fishponds.

The rules is that the failure to pay the annual rent and surcharges for two consecutive years without justifiable cause shall be a ground for the termination of the lease contract and the bond shall be forfeited in favor of the government. – Rene U. Borromeo/BRP   (FREEMAN NEWS)