Capitol told: Utilize dev’t fund properly

CEBU, Philippines - State auditors have reminded the Cebu provincial government to observe proper utilization of its 20-percent development fund.

This after the Commission on Audit found out that Capitol spent a total of P11.27 million for the purchase of 50 multicabs and 24 mini-ambulances, and other expenses such as vehicles maintenance, office supplies, oil and lubricant, and travel.

COA said these are not connected with the implementation of development projects, programs and activities and should not be paid out of the 20 percent development fund.

Under the Joint Memorandum Circular  2011-1 of the Department of Interior and Local Government and the Department of Budget and Management, items not covered by the development fund are traveling expenses, communication, water and light, petroleum products, office furniture, purchase and maintenance or repair of motor vehicles or motorcycles.

In reply to the COA findings, Assistant Provincial Budget Officer Danilo Rodas wrote back that the fund utilization COA cited is “in accordance” with JMC 2011-1.

He said the multicabs and mini-ambulances were used in responding to emergencies, such as natural and man-made calamities, which are allowed under the said JMC.

As to the other expenses, Rodas said that they were also allowable since they were related to development projects such as resource protection (like the Bantay Dagat expenses), and preservation of cultural and historical sites like museums “to attain a desirable socio-economic development and environmental management outcomes.”

“By the phrases ‘may be’ and ‘not related to and/or not connected’ the said JMC 2011-1 does not impose an absolute prohibition of development projects to be undertaken,” said Rodas.

Instead, he said, JMC 2011-1 “identified projects as a matter of priority, and therefore includes other projects that are similar in nature, and expenses related to and/or connected with the implementation.”

He also said that in the 2014 budget, the said expenses are already covered under the general fund proper. (FREEMAN)