COA questions Cebu airport execs’ fund misuse

MANILA, Philippines - The Commission on Audit (COA) has discovered some irregularities in the use of funds by executives of the Mactan Cebu International Airport Authority (MCIAA).

In its 2011 report released recently, state auditors said reimbursement of various expenses incurred by unnamed officials, along with charges against government funds caused irregular expenditures totaling P642,049.51, “to the prejudice of the interest of the agency where these board members exercise fiduciary functions.”

The COA report said some meals or snacks were served to only one person, adding that even petty purchases such as a cup of coffee or two scoops of ice cream were charged against government funds.

“Meals were sometimes purchased as ‘take out,’ ‘drive thru,’ or even delivered to some residential addresses,” state auditors said, adding that several receipts were for meals or food purchased on Saturdays and Sundays.

Some expenses for meals or food were even charged against the credit cards of other persons that were later claimed for reimbursement by ex-officio board members.

The COA report said food and gasoline expenses were incurred in places such as Batangas, Boracay and Laguna. Airfare from Manila to Caticlan and back were also reimbursed against MCIAA funds, it said.

“Receipts for meals costing P3,000 and above were not supported with the requisite attendance sheets showing the signatures of participants as proof that the incurrence of the expenses were in connection with business meetings,” state auditors said.

“Hotel accommodations, food, including payment for spa services were charged against government funds. All expenses for telecommunications did not have proof that the accounts were under the name of MCIAA and the usage related to the member of the board’s function at MCIAA,” the audit team said.

The COA report said groceries purchased from a Japanese store were passed off as meals and were included as “meals during business meetings” while expenses for the purchase of whole “lechon” on several occasions were likewise reimbursed.

COA said the MCIAA management justified the expenses, citing Executive Order 24, which states that “all necessary expenses of members of the board of directors/trustees to attend board and other meetings and discharge their official duties shall be paid directly by government-owned and controlled corporation.”

The MCIAA management added that ex-officio members incurred the expenses in the performance of their functions.

However, the audit team said EO 24 “does not give blanket authority to ex-officio board members to be reimbursed based on just the presentation of any kind of receipt.”

State auditors the MCIAA management should ensure that expenses to be reimbursed passed the “public purpose test” by requiring that basic supporting documents for government expenditures are attached to the claims.