COA: CH needs to liquidate P118M

CEBU, Philippines - The Commission on Audit (COA) 7 reported that the Cebu City Government has a total of about P118 million unliquidated cash advances.

The auditing agency also found out that some of these cash advances were granted way back in 2000.

The report stated that former mayor and now Cebu City South District Rep. Tomas Osmeña has a total of P2.6 million unliquidated cash advances.

Osmeña was granted a cash advance of P3 million at an unspecified date and was able to liquidate the P400,000 on February 14, 2011.

Osmeña’s ally, Vice Mayor Joy Augustus Young, also has an unliquidated cash advance of P50,000 while Philip Zafra, Rama’s chief of staff, also has an unliquidated cash advace of P4.5 million, granted on Dec. 22, 2011, for the Peace Development Plan to be taken from the Intelligence Fund.

Rama’s treasurer Emma Villarete was also granted P1.09 million cash advance in August last year and this also remained unliquidated.

COA also noticed a P6 million unliquidated Intelligence and Confidential Expenses.

 “We recommend that the city government require the immediate liquidation of cash advances through demand letters to be signed by the city mayor or his representative,” COA’s report said.

Cebu City Mayor Michael Rama said since these cash advances were granted way before he assumed office in July 2010, the previous administration should also be made to liquidate their cash advances.

“Those cash advances were granted before my term. COA should not let me collect the amount. Use your lawyer. Don’t make us a collecting agent, ” he said. 

Rama assured to look into the unliquidated cash advances within his term.

Including Osmeña’s cash advance, the city has an outstanding P19 million unliquidated cash advances in 2011 alone and this is a violation of a COA circular and Section 89 of PD No. 1445.

The section states a cash advance can only be granted for a legally authorized specific purpose and must be liquidated as soon as the purpose for which it is given has been served.

The law also provides that no additional cash advance shall be allowed to any official or employee unless the previous cash advance given to him is first settled.

COA’s report also stated that in case of refusal by city employees to liquidate or settle their accountabilities, the salaries of the concerned employees may be withheld to satisfy the unsettled cash advances.

“We recommend too that clearances for retiring, resigning or transferring officials be deferred until such time that they have liquidated their outstanding cash advances,” COA’s report also stated.     - THE FREEMAN