Aurora exec disputes COA report on P127-M cash deficit

BALER, Aurora, Philippines – A Commission on Audit (COA) report detailing a supposed P127.37-million cash deficit incurred by the provincial government of Aurora during the previous administration is inaccurate and flawed, according to a top official.

Provincial accountant Wilfredo Saturno said the purported huge cash deficit, which was contained in COA’s audit observation memorandum (AOM), was the result of double entries in the list of payables of the provincial government in 2012.

“The COA auditors committed a grave error in listing receivables as payables. Because of this manifest error, it would appear that there was such a huge deficit when there was not,” Saturno told newsmen.

Saturno, a member of the capitol’s finance committee, issued the clarification amid the controversy generated by the reported 2012 cash deficit incurred during the administration of then governor, now Rep. Bellaflor Angara-Castillo.

According to the COA report which first came out last February, the provincial government posted insufficient cash backing or deficit of P127.37 million in 2012, thus affecting public and special projects.

The AOM was signed by then COA team leader Antonio Marzan and supervising auditor Eugenio Dizon. The team recommended the adoption of cost-cutting and revenue-enhancing strategies to cushion the impact of the supposed deficit.

The cash deficit issue has been leveled against Angara-Castillo and the Angaras particularly during the campaign and it was believed to have played a key role in the defeat of former three-term Baler mayor Arthur Angara to incumbent Gov. Gerardo Noveras in the gubernatorial race.

Last Sunday, the issue surfaced anew when a Catholic priest, a vocal critic of the Angaras, discussed the supposed deficit in his homily.

Fr. Nilvon Co Villanueva said cases might be filed against those behind the deficit.

Earlier, Angara-Castillo denied there was any such deficit during her term, much less P315.94 million worth of debts as alleged by critics.

She said it was absurd for state auditors to talk of a cash deficit when she herself was sourcing outside funding for provincial government projects.

“Imagine we were able to secure funding for our hospital, rice processing complex and center for persons with disabilities worth a total of P700 million from foreign countries,” she said.

She was apparently referring to the P600-million, state-of-the-art Aurora Memorial Hospital funded by the Japanese government, the P130-million RPC funded by the Korean government, and the P5-million PEACE Center also funded by the Japanese.

Angara-Castillo said when the issue was first raised, Saturno and provincial budget officer Norma Clemente assured her that they would issue a joint statement denying the COA findings.

“The thing is, they have not issued a joint statement up to now to dispute the findings of the audit team,” she said.

Saturno said the audit team also committed a grave error in not arranging an exit conference with the finance committee of the capitol to discuss the supposed cash deficit.

“The COA report was never clarified. In the first place, we no longer have any payables now,” he said.

The supposed cash deficit became a major issue last August when The STAR reported that key cities and provinces in the country were facing liquidity problems because of empty coffers and debts left by their former local officials.