DILG closes COA-flagged trust fund accounts

MANILA, Philippines — The Department of the Interior and Local Government (DILG) said it has closed four trust fund accounts at the state-run Landbank of the Philippines, which were flagged by the Commission on Audit.

In a statement on December 28, the DILG said that it had closed the Landbank trust fund accounts with a total of over P12.98 million.

“The Department said the accounts were used as depository accounts for funds from other national government agencies,” the DILG’s statement read.

“The accounts were created to ensure the prompt release of funds to support the implementation of various programs and projects,” it added.

The agency said that it is also working with the Bureau of Treasury to set up a new compliant account, a Modified Disbursement System Trust Account at LandBank.

The DILG indicated that the new account will be designated for future fund transfers entrusted to the department which will take effect this month. 

On December 23, state auditors flagged the bank accounts with a total of P12,983,556.13. According to the Commission on Audit, they exist notwithstanding that their creation and retention as of year-end 2023 "have no legal basis."