COA unearths questionable Capitol deals anew
TUPAS
Government auditors have now asked officials of the Iloilo Provincial Government to explain and justify millions in expenses deemed as either unauthorized, irregular, illegal, inaccurate and doubtful.
For starters, questions are raised on the validity and truthfulness of a status report submitted by the General Services Office (GSO) covering buildings owned by the Capitol valued over P248 million.
The Commission on Audit (COA) as per validation and verification made in its Annual Audit Report (AAR) stated that said amount and report was found to be "doubtful in existence" and a "misstatement." Such, after the Commission discovered that no adequate records accompanied the GSO report with only P34 million worth accounted for.
There is also an "overstatement" of the Capitol's accounts reaching over P225 million. Part of the problem, GSO chief Ramie Salcedo justified before COA auditors, was the lack of records on fuel use of Capitol executives.
And more unaccounted and unreconciled records too on the Provincial Government's Property, Plant and Equipment (PPE) with over P97 million questioned.
All these, alongside COA's discovery of over P3.2 million unauthorized honorarium released by the Capitol as professional fees to members of the Technical Management and Games Administration Committee in last years's Palarong Pambansa. The amount and the office orders/memoranda was questioned by COA for lack of authority "thus raising doubt as to he legality of the claim and identity of the claimants."
To recall, the Province hosted the one week sports event in May. While a Provincial School Board Resolution approved P6 million in total counterpart budget for the Department of Education (DepEd), COA as per review of the payrolls discovered glaring deficiencies.
Honorarium was released to some 711 officials and members of various games committees minus office orders/memoranda. There was also no authority issued by the DepEd secretary or its duly authorized representative regarding said honorarium and the rates as fixed was not based on actual number of days or hours rendered.
COA now wants full disclosure of the identity of the 711 beneficiaries/claimants of the P3.2 million alongside the authority from which the Capitol supposedly got its order.
INFRASTRUCTURE PROJECTS
There are also over P21 million infrastructure projects that the Capitol implemented in the past year minus contract agreements. Instead, the Iloilo Provincial Government issued "Purchase Orders" which COA noted had terms and conditions that limited the responsibilities and accountabilities of the contractors in case of project failure or ineffectiveness.
Salcedo as GSO chief justified anew that a consensus was reached between his office, the Provincial Engineer and the Provincial Budget Officer that 'Purchase Orders" are sufficient to bind the provincial government and the chosen contractor. Any other mode, Salcedo explained to COA, would have delayed the Capitol project.
COA outrightly dismissed Salcedo's justification.
"We disagree with management justifications. Management should abide with the requirements in RA 9184 in the procurement of civil works," excerpts of the COA comment went. And have the Sanggunian Panlalawigan get involved by giving their nod on said project, COA further noted. "Procurement should be properly planned to have adequate time to comply with the requirements under RA 9184 and avoid delay in the implementation."
In the first six months of the previous year alone, controversial Capitol contractors F. Gurrea and Francis Clyde Construction Supply bagged most of the projects singled out by COA for not having contract agreement.
SUBSTATION
Also highlighted in the COA report was the P13 million Capitol Power Substation. Not only is this project not operational, COA pointed out, but the disbursement vouchers for the payment of equipment were not supported with complete documentation.
"The equipment was delivered two years ago and the sub-station was already completed but the project was still inoperative. The failure of the province to facilitate the approval of the ERC caused the delay in the operation of the substation. Extended delay would expose the equipment and station to deterioration and would entail additional expenses for its repair. Likewise the provincial government is deprived of the savings on electric power the project could generate," COA stated.
More questions too on the Capitol's Bids and Awards Committee (BAC) and Technical Working Group (TWG) personalities for continued honoraria despite previous COA disallowance. (See related story)
Similar questions raised and comments reiterated on Capitol's food expenses of over P3.2 million for food catering that covered six to twelve courses. (See related story)
The COA report was duly signed by COA Cluster Director Delfin Aguilar, Director IV.