MANILA, Philippines - The president of the Philippine Association of Local Treasurers and Assessors (PHALTRA) warned local government units yesterday against using their Internal Revenue Allotments (IRA) as collateral for loans, as these may be used to finance the campaign of local candidates in the coming 2010 elections.
PHALTRA president Victor Endriga told The STAR that using IRA as a collateral, aside from being bad practice, is a potential source of corruption in LGUs and may result in misuse of funds.
Endriga issued the warning in light of Eastern Samar Rep. Teodolo Coquilla’s exposé on his province’s alleged use of IRA as a collateral to obtain a loan to buy heavy equipment and machineries.
Coquilla, in a privilege speech last Wednesday, revealed the P173-million loan obtained by the provincial government under Gov. Ben Evardone from the Development Bank of the Philippines (DBP) to purchase heavy equipment from Japan, Germany and the United States using the P20 million from the IRA of the province as collateral.
Coquilla claimed the move has only plunged Eastern Samar into deeper economic problems, especially because the province subsists totally on IRA funds.
“As a matter of fact, the entire province of Eastern Samar which comprises 597 barangays and 23 municipalities are IRA-dependent,” Coquilla stressed.
He urged the House to initiate a congressional inquiry into the alleged anomaly and threatened to file plunder case against those involved.
Endriga stressed the use of IRA as collateral was being practiced by some politicians before their term ends. Once they lose in the election, newly-elected officials will shoulder the burden of paying the loan obtained by using the IRA.
The STAR tried to call Evardone to get his side but his cell phone was unattended.– Perseus Echeminada