COA sees deficiencies in Suroy Suroy program

CEBU, Philippines - The Commission on Audit (COA) has raised concern on the Suroy-Suroy Sugbo of the Provincial Government, specifically on the expenditures of the program.

Yesterday, COA sent an audit observation memorandum to the Office of Acting Governor Agnes Magpale for the year 2012 where it stated a number of “deficiencies” primarily on the expenses of the program in 2012 which reached P11,455,064.81.

The amount was 201 percent more than the total revenue collection of the program in that year which was P3,793,319.00. This was made even as the Provincial Government still had to pay P67.5 million for the 26 buses it procured in October for the program, the COA pointed out.

“While we agree that the program is a laudable one to promote Cebu province as a prime tourist destination, the expenses incurred could have been minimized had management exercised more prudence in the disbursement of government funds.”

Further, COA pointed out that while the Suroy-Suroy program has been ongoing since 2004 as started by suspended Governor Gwendolyn Garcia, it was only in 2012 that the program was institutionalized.

“There had been no recorded resolution or ordinance for the creation and funding of the program.”

The Freeman tried to contact Provincial Board member Peter John Calderon, who was then head of the committee on laws and currently chairman of the committee on budget and appropriation, but he was out of town.

Other PB members were also out of their office and on leave and acting governor Magpale was out for official functions.

Provincial Secretary Anecita Pasaylo said that they do not remember any resolution being submitted on the funding of the Suroy-Suroy program. She said it was all through the governor’s office and they only received a resolution related to the program when Provincial Board Member Arleigh Sitoy proposed to have it institutionalized last September 2012.

Apart from the expenditures, COA highlighted that there were instances in the number of Suroy-Suroy progam that non-paying guests were more than the paying guests.

“In June and September, the number of the entourage was more than the number of paying participants. If we have to compute the ratio between the number of paying participants as against the number of members of the entourage, it will come out that there were three members of the entourage for every two paying participants.”

The findings also stated that there were no criteria as to who can qualify as non paying guests and who will pay.

It stressed that in June 2012 for example, 44 guests participated. But the list provided by the Provincial Tourism Office did not even provide the complete names of at least 10 of the said guests.

“Some, if not most of the guests are private individuals and may have violated the law that no government funds shall be expended for a private purpose.”

Included in the observation of COA were the related expenses from the months of January to October for non-paying guests which were charged against the General Funds. These included advertising expenses at P1,744,065.75; office supplies expense P11,933.00; other maintenance and operating expenses P2,358,889.29; other office supplies P1,039,713.83; rent expense P1,355,592.40; representation expense P182,494; telephone expense mobile P1,400 and travelling expense at P1,256,383.94.

These expenses reportedly included 200 tshirts, 100 sun visors, 100 umbrellas and 45 polo shirts bought for non-paying guests at P93,200 while P235,950 was paid for six aircon buses, P273,740 was for room accommodation of non paying guests excluding P45,000 paid for lunch and snacks.

Also, it showed that P24,000 was paid to four tour guides “when in fact, the entourage included 46 provincial tourism staff.”

As mentioned earlier, the Province is set to pay P67.5 million for 26 buses. With the COA observation, it states that based on the number of participants both paying and non-paying, “the 26 buses could be considered as very much in excess.”

The COA is requesting the Provincial Government to comment within five working days from receipt of the said observations. The Commission reminded the Province of section 2 of Presidential Decree No. 1445 stating “it is declared policy of the state that all resources of the government shall be managed, expended or utilized in accordance with law and regulations and safeguarded against loss or wastage through illegal or improper dispositiom, with a view to ensuring efficiency, economy and effectiveness in the operations of government. The responsibility to take care that such policy is faithfully adhered to rests directly with the chief or head of the government agency concerned.”

The COA also recommended that the management should be more prudent in the disbursement of government funds as well as to justify the number of members of the entourage in each Suroy-Suroy Sugbo including private individuals as guests and to submit the guidelines as to who are paying guests and not.

Magpale earlier said she was more than willing to push through with Garcia’s Suroy Suroy Sugbo program but she ordered to cut down on expenses as one of the major changes she made when she took over as acting governor last December. — /JPM (FREEMAN)