Zambo City ecozone's cell phone expenses questioned

MANILA, Philippines -  Ranking officials and employees of the Zamboanga City Special Economic Zone Authority (ZCSEZA) are enjoying the benefits of having up to four government-issued cellular phones.

Worse, government funds are being used to pay for their mobile phone expenses.

In a report, the Commission on Audit (COA) said one official was found to have four postpaid mobile subscriptions which amounted to a total of P130,827.72.

State auditors said the amount is almost half of the agency’s total expenses for cellular phone use last year at P289,783.72.

“Maintenance of two or more mobile phone units by the Authority’s officers and employees is excessive, extravagant and uneconomical,” the COA report said.

Records show that in 2010, the agency acquired mobile phones costing P96,440 and issued these to its officials and employees who already had two or more previously issued handsets.

State auditors said the previously issued cell phones were not returned or turned over to the agency’s property section for proper disposition despite the issuance of the new units.

“Considering that the financial circumstance of the Authority is not good, we found the procurement and issuance of new mobile phone units to officers and employees who have already several issued units in their possession and maintaining four postpaid mobile phone subscriptions by an officer of the Authority as excessive and extravagant expenditures,” the COA report said.

COA emphasized that Section 40 of the General Provisions of the General Appropriations Act of 2010 requires all government agencies, including government-owned and controlled corporations, “to observe fiscal discipline and avoid unnecessary expenditures and implementation of low priority projects and activities as a continued support to the austerity measures adopted by the government.”

State auditors added that Section 495 of the same law provides that when equipment issued to an officer and employee is no longer needed, it shall be returned to the property clerk.

Under COA Circular No. 85-55-A, they said unreasonable expenses or expenses “incurred at an immoderate quantity” are considered “excessive” while extravagant expenditures are those “incurred without restraint, judiciousness and economy and grossly excessive.”

In defense, the ZCSEZA management said the mobile phone expenses incurred by their chairman and administrator were necessary and vital since most transactions were with people outside Zamboanga City where their main offices are located.

ZCSEZA officials added that they incurred only a minimal amount for such purposes as compared to other economic zones whose offices are located in Makati City and are spending millions for communication services.