Asturias told to get rid of unusable equipment

CEBU, Philippines - The Commission on Audit has asked the local government unit of Asturias, Cebu, to dispose of its unserviceable properties and equipment to prevent further deterioration.

In its 2012 annual audit report, COA found that the amount of unserviceable property and equipment has increased from P13.4 million in 2011 to P15.4 million in 2012 and were not immediately disposed.  Likewise, out of P15.4 million cost of unserviceable properties, only 37 percent or P8.5 million were requested for inspection and appraisal by COA for disposal.

“Delay on the disposal of these properties had exposed them to fast deterioration thus prevented the municipality from obtaining higher proceeds from sale thereof,” the audit report said.

Section 79 of PD 1445, provides that, “When government property has become unserviceable for any cause, or is no longer needed, it shall, upon application of the officer accountable therefore, be inspected by the head of the agency or his duly authorized representative in the presence of the auditor concerned and, if found to be valueless or unsalable, it may be destroyed in their presence.

If found to be valuable, it may be sold at public auction to the highest bidder under the supervision of the proper committee an award or similar body in the presence of the auditor concerned or other duly authorized representative of the Commission.”

Section 6 of COA Circular No. 83-206 also provides the modes of disposal which include sale through public bidding, or the Committee may dispose the property at any manner deemed most advantageous to the government, including through barter or negotiated sale at not less than the Committee appraised value; and barter with other government agencies and government-owned or -controlled corporations.

COA said that these properties remained not disposed of and are left in the equipment pool and garage exposed to further deterioration.

In June 2012, the LGU submitted to the previous audit team a request for inspection on unserviceable construction and heavy equipment totaling P8,457,850.00.

The audit team forwarded these documents with the request for assistance with the technical specialist of COA-7 and an inspection was conducted sometime last December.

The inspection and appraisal report pertaining to this have not yet been received by the present audit team, it said. — (FREEMAN)