COA FINDINGS Part of P30M aid to Danao irregular

CEBU, Philippines - The Commission on Audit has found the disbursement of a portion of Danao City’s P30-million financial assistance from the Cebu Provincial Government irregular since it was not used for its intended purposes.

COA found out that a total of P11,593,779.86 or 39 percent of the P30 million financial assistance has been disbursed for wages and maintenance and other operating expenses.

In 2009, the Danao City Council requested for financial assistance from the Province of Cebu for the rehabilitation of all water distribution pipes in Barangay Poblacion amounting to P30 million.

The city received the said financial assistance in two tranches at P15 million each for phase 2 and phase 2 of the project. 

However, the project was not implemented in 2010 and 2011. In July 2012, former city mayor Ramon “Boy” Durano Jr. requested then governor and now third district Rep. Gwendolyn Garcia for the realignment of the P30 million funds to MOOE instead of the original purpose, which the latter approved.

In August 2012 and December 2012, another realignment was made for the P1.5 million and P8,537,519.43, respectively.

As of Dec. 31, 2012, based on the approved realignment of funds by the governor, COA noted that the city disbursed P11,593,779.86 for various expenditures

It was also noted that included in these were wages of personnel under job order contracts in the total amount of P3,155,055.86.

“Due to the absence of legal basis, disbursements of the subject financial assistance are considered irregular,” COA said.

During the exit conference, the city accountant and treasurer alleged that they acted in good faith with presumption of regularity.

Likewise, they already informed the mayor to discontinue the disbursement of the funds.

COA recommended that the city secure an amendatory appropriation ordinance from Cebu Provincial Board approving the realignment of the P30 million financial assistance.

It likewise stopped the disbursement of funds of the financial assistance for expenditures which are not within its purposes, otherwise, these shall be disallowed in audit.

Earlier this year the PB passed a resolution blocking the realignment of P30 million in financial assistance from the Capitol.

A copy of the said resolution was submitted to COA and the Landbank of the Philippines, the depository bank of the Danao City government.  (FREEMAN)