COA admits spending P71 M in DAP funds

MANILA, Philippines - The Commission on Audit (COA) used more than P71.3 million in Disbursement Acceleration Program (DAP) funds for consultancy expenses, upgrading of information technology (IT) software and equipment and the purchase of closed-circuit television (CCTV) cameras in 2012 and 2013.

State auditors, auditing the financial transactions of its own agency, in effect admitted that COA received P143.7 million from DAP before the program was declared unconstitutional by the Supreme Court in July 2014.

Such ruling stopped the use of DAP funds which prompted COA to return P65.1 million to the National Treasury in August last year.

In a 2013 report released over the weekend, state auditors said COA received a Special Allotment Release Order (SARO) in the amount of P143.7 million to cover its IT infrastructure program and the hiring of additional litigation experts.

In April 2012, the corresponding Notice of Cash Allocation (NCA) was released in the amount of P136.5 million since P7.1 million was used to pay tax.

Records show that P4.7 million was spent for consultancy services, P64.5 million for IT software, P49,697 for furniture and fixtures and P1.9 million for CCTV expenses.

DAP, created by the Aquino administration, was intended to accelerate government spending by using so-called savings from different departments and agencies.

The Supreme Court had said the “creation of savings from un-obligated allotments prior to the end of the fiscal year without complying with the statutory definition of savings under the General Appropriations Act (GAA) as well as the executive department’s cross-border transfer of savings to another branch of government” are unconstitutional.