Commission on Audit questions Bataan project

MANILA, Philippines - The Commission on Audit (COA) has uncovered allegedly questionable practices in the implementation of a multimillion-peso housing project in Bataan during the term of former governor Ding Roman.

The COA reported that the correctness of the P33,240,000.07 valuation of the 22.16-hectare land, which served as the initial site of the Peninsula housing project in Samal town, was doubtful since it was not allegedly based on the recommendation of a proper appraisal committee.

The report said accrued interests of P71,583,343.36 on the P143,101,343.84 loan from the Home Development Mutual Fund for the Peninsula project was taken up as debit to Other Investments and Marketable Securities instead of Interest Expense, thus resulting in an overstatement and understatement of assets and expenses.

While the loan proceeds were treated as an investment in the Bataan Provincial Development Corp., the loan was carried in the provincial books of accounts so the interest expenses on the loan should have been properly recognized.

The report also said unaccounted financial interests and charges on the loan resulted in an understatement of Interest Expense by P44,231,750.76.