5 more LGUs have P382-M unliquidated advances

MANILA, Philippines - Five more Metro Manila cities have unliquidated cash advances of over P382 million as of Dec. 31, 2010, according to the Commission on Audit (COA).

Parañaque leads the list of localities with unsettled financial obligations totaling P149.2 million followed by Manila, the country’s capital, with P105.9 million while Malabon, Pasay, and Muntinlupa have P67.8 million, P20.2 million, and P19.4 million respectively.

Of Metro Manila’s 17 cities and municipalities, the COA has so far audited the financial status of 12 local government units (LGUs) and only three – Navotas, Marikina, and Las Piñas – had no cash advances for which to account.

Parañaque, Manila, Malabon, Pasay and Muntinlupa now join the ranks of Caloocan, Makati, Mandaluyong, and Pasig which collectively had P629 million in unliquidated cash advances as of Dec. 31, 2010.

COA auditors said some of these unsettled obligations were belatedly accounted for early this year while others, despite repeated reminders and demands, remain unliquidated up to this time.

In the case of Parañaque, audit findings revealed that of its P149.22 million in unliquidated cash advances, around P75 million – including those made by Mayor Florencio Bernabe and former mayor Joey Marquez – were settled beyond the required date. Cash advances have to be liquidated by the end of each year.

COA said Manila has P105.93 million in unliquidated cash advances that have not been settled. The state auditors said some of the cash advances were more than the employee received for a pay period, while others were granted additional cash advances through their previous ones were not yet liquidated.

“These practices opens opportunity to commit fraud and misappropriation of funds because the excess amount of cash advance and the additional cash advance may be used to cover up shortages, personal borrowings and losses,” the COA said.

Malabon had unliquidated cash advances totaling P67.8 million as of Dec. 31, 2010 but P22.5 million of the same was liquidated in February 2011. The COA, however, noted that P48.7 million of the amount was granted to only one person, special disbursing officer Elena Miguel, “for different purposes which event/purposes has already been served but no settlement/liquidation report was submitted.”

For Pasay, state auditors said the locality had unliquidated cash advances amounting to P20.2 million last year “due to the failure of the accountable officers concerned to settle their accountabilities.” The COA said P2.3 million has been settled this year.

Muntinlupa’s unliquidated cash advances last year stand at P19.43 million, P5.15 million of which has been outstanding from one to five years.