COA: BFAR failed to collect P.2 B in fishpond rental fees in 2011

MANILA, Philippines - The Bureau of Fisheries and Aquatic Resources (BFAR) failed to collect more than P225.7 million in fishpond rental fees in 2011, resulting in lost government revenues, according to the Commission on Audit (COA).

State auditors, in a report released only recently, said BFAR should address the issue and penalize erring lessees if necessary, even if it means terminating their lease agreements.

“The national government could have generated an estimated additional income of P225.778 million had the bureau intensified the collection of Fishpond Lease Agreement (FLA) rentals in 11 regions,” the report said.

Fishponds in Region 5 (Bicol) accounted for the bulk of uncollected rental fees amounting to P79.5 million, the report said.

COA also took note of other problems in the audit of FLA rental fees. For instance, lessees pay their rental fees to the BFAR central office without the regional offices being informed about these payments.

State auditors said the penalties and cancellation of contracts for failure to pay rental fees were not strictly enforced and no physical inventory of fishponds was conducted to determine their actual conditions or existence.

Collection issues also beset some FLA holders as fishponds were already being titled, foreclosed by banks, occupied by informal settlers or the subject of court cases. A number of fishpond lessees also suffered losses due to natural calamities, COA said. 

The agency also blamed the low collection of rental fees on inaccessible payment centers.