'Palace has P533-M unliquidated cash advances'

MANILA, Philippines - The Office of the President has P533.7 million in unliquidated cash advances, a 2010 Commission on Audit (COA) report released over the weekend revealed.

State auditors are already recommending the imposition of sanctions against concerned officials and employees who failed to settle their obligations in time. Records show that a huge chunk of the unliquidated cash advances amounting to P378 million were made during the Arroyo administration, while only P34.3 million were made during the Aquino administration.

Data submitted by the Office of the President to COA also show that P121.2 million of the total unsettled cash advances were made during other previous administrations.

State auditors initially reported that Malacañang had unliquidated cash advances of more than P832.8 million as of Dec. 31, 2010.  

But in subsequent discussions, the Office of the President said that over P299 million or 35.91 percent of the same had already been accounted for as of June 22, 2011, leaving an unliquidated balance of about P533 million.

Malacañang also assured COA that accountable officers were continuously reminded of their responsibility to liquidate their cash advances. 

They said failure to do so will mean that a reasonable amount from their salary will be withheld, and that additional cash advances will no longer be granted to them “unless urgent and necessary.” State auditors reminded Malacañang of Section 89 of Presidential Decree 1445, the Government Auditing Code of the Philippines that states, “A cash advance shall be reported on and liquidated as soon as the purpose for which it was given has been served.”

The audit team said COA Circular 97-002, dated Feb. 10, 1997 also prescribes the period within which to liquidate the cash advances granted to accountable officers for specific purposes. It states that failure to do so “shall constitute a valid cause for the withholding of his salary; and that ‘No additional cash advances shall be allowed to any official or employee unless previous cash advance given to him is first settled or a proper accounting thereof is made’.”

The COA report said concerned officials and employees with unsettled financial obligations should be required to liquidate their cash advances immediately.

State auditors said the Office of the President should “exert more efforts to cause the full liquidation of the Other Receivables from former officials/employees who were transferred, retired, or separated from the (Office of the President).”

“Impose the sanctions provided under COA Circular 97-002 against concerned (accountable officers),” part of the annual audit report’s recommendations read.