SINCE 1992 Cebu City accumulates over P70M disallowances

CEBU, Philippines - The Cebu City government has over P70 million worth of accumulated disallowances since 1992, acting city accountant Mark Rossel Solomon told The FREEMAN.

 This amount, P70,892,190,  includes P501,285 (Special Education Fund); P300,804 (Trust Fund Proper); and P70,090,101 (General Fund and Barrio Fund).

 Solomon said the  bulk of this amount represents the “disallowance balance” as of December 31, 2013 from disbursements for contractors and suppliers.

 â€œGinagmay ra ang employees and officials. Ang dagko nga gi-disallow (by the Commission on Audit) ang contractors and suppliers gyod,” Solomon said.

In a letter dated May 13, 2014, the COA demanded that the city government settle outstanding “disallowances and charges”.

 â€œPlease inform the respective accountable officers/ employees to settle the said balances as soon as possible to avoid sanctions like withholding of salaries or other compensation,” part of the letter read.

 Solomon then sought the opinion of COA Regional Director Alicia Malquisto for legal opinion as to how best to address the matter. Malquisto is yet to respond to the request.

City attorney Jerone Castillo said the city is willing to go after or file charges against those who failed to settle disallowances and charges.

 â€œI-clear gyod ni nato because we are not bound to their mistakes. Ang mga patay na, we will go after their estate,” he said.

 â€œThe amount may be immaterial but COA does not allow a write-off.  It’s sometimes not practical and feasible kay patay na ang hingtungdan pero ang COA wants zero account,” he added.

 As regards the notice of suspension or the “demand to comply”, Solomon said COA allegedly failed to issue said notice to more than 150 city hall employees and officials who allegedly fell short of the submission of pertinent documents the agency required from 1992 to 2000.

 â€œEasily, ma-comply unta ni had it been the COA issued a Notice of Disallowance,” Solomon said, citing Sec.10 of COA Circular No. 2009-06, which states that the auditor shall issue a Notice of Disallowance for transactions which are irregular, unnecessary, excessive and extravagant, and those which are illegal and unconscionable. — /JMO (FREEMAN)