COA: Talisay’s collection of fees from use of buses illegal

CEBU, Philippines - State auditors have questioned why the Talisay City Government continue to collect rentals for buses owned by the city and charging fees for the use of the people’s hall at the city hall when no ordinance authorizes such practice.

Section 305.c of the local government code provides that “the local revenue is generated only from sources expressly authorized by law or ordinance, and collection shall at all times be acknowledged properly.” 

The auditors said collections are without legal basis and it is illegal.

Upon verification of the financial records of the city government, it was found out that collections from rentals of two buses owned by the city government were without basis whether by law or by ordinance.

COA said the city government only based the rates of its collection through referrals with neighboring cities and the rates were only agreed upon by some department heads. 

“There was no law or ordinance approved by the Sangguniang Panlungsod prescribing the bus rental rates,” the 2011 annual audit report read. 

Further verification also showed that the request for reservation of buses was approved by the General Services Office for scheduling and determining the rates of the bus rental. 

City administrator Ritchel Bacaltos will be the one to recommend to the city mayor for the final approval.

In most cases, the prescribed rates are not followed and most of the times there are no reduced or made of free of charge by the city administrator or the city mayor. 

Per records, the total income of the bus rentals as of last year was only P118,750, which was used to cover only the maintenance costs while collections though were receipted and booked as miscellaneous income. 

Records also showed that the number of clients who used the buses reached to 357. Of these, only 59 paid the bus rentals. 

While COA said that it is a good venture to collect fees from rentals of buses and people’s hall, the revenue activity still needs an ordinance to make it legal. 

In a separate interview with The FREEMAN, Councilor Richard Francis Aznar said he will verify the report.

Aznar, chairman of the committee on laws, acknowledged that collection of fees and charges should be covered with an existing ordinance.

He said he will sponsor an ordinance on charges and fees for rentals and people’s hall, if no local laws have been adopted to cover such matters. (FREEMAN)