Danao told to get PB approval to spend Capitol financial aid

CEBU, Philippines - The Commission on Audit has asked the City of Danao to secure an appropriation ordinance from the Provincial Board of Cebu to validate the disbursement of the P30 million assistance from the Capitol.

COA in its 2013 audit report found out that the city used P6,944,040.42 of the amount to pay for the wages and maintenance and other operating expenses even if these were not among the purpose for the financial assistance.

In 2009, the city requested for financial assistance from the Capitol for the rehabilitation of all water distribution pipes in Barangay Poblacion.

 In 2010, the city received the said financial assistance in two tranches at P15 million each.

 Since the project was not implemented in 2010 and 2011, former Danao City mayor Ramon “Boy” Durano Jr. requested for the realignment of the funds to MOOE from its original purpose. The request was approved by then governor Gwendolyn Garcia.

However, COA said the change of the intention of the grant needs the approval of the PB through an appropriation ordinance which the city failed to secure.

 Out of the P30 million financial assistance, the amount of P11,593,779.86 was disbursed in 2012.

 COA said despite the lack of PB’s approval, the city continued to disburse additional amounts totaling P6,944,040.42 in 2013 for gasoline, oil and lubricants; repair and maintenance of motor vehicles; drugs and medicines; traffic enforcement program; Pasigarbo sa Sugbo; maintenance of government buildings; construction of artesian wells; sanitation and street cleaning and others.

 Records also showed that wages of personnel under job order contracts in the total amount of P2,371,923.52 were paid out of the financial assistance.

 The city stopped the disbursement of the funds as of February 2013.Likewise the City Council has authorized Durano to separate and open an account for the remaining P11,462,179.72 under the trust fund so as not to hamper other projects, program, activities to be implemented under it.

During the exit conference, the city accountant and city treasurer alleged that the disbursement in the total amount of P6,944,040.42 was made prior to the receipt of the Memorandum Order from then acting governor, Vice Governor Agnes Magpale, directing the city to refrain from using or disbursing the funds other than its original purpose.

 The amount of P2,083259.19 was disbursed as payment for wages of job order workers, notwithstanding the Memorandum Order of Magpale, the mayor was notified in writing to discontinue the processing of claims in the absence of an amendatory ordinance.

 Durano reportedly issued memorandum on February 19, 2013 directing the budget officer, treasurer, accountant, and the human resources management officer to continue the processing of the unexpended balance of the realigned financial assistance.  (FREEMAN)