COA flags SPDA for listing 10 Mindanao properties at P1.00 each

The Commission on Audit has called the attention of the Southern Philippines Development Authority (SPDA) for listing 10 parcels of land in its book of accounts at a price of only P1.00 for each property.

In its 2017 annual audit report, the COA said state auditors have already flagged the same properties in its previous reports for 2012 and 2014 but the SPDA management has yet to take action on its appraisal.

"Inquiry with the Property Officer In-charge revealed that no action on the part of the management has been made in addressing this audit finding," the COA said.

The COA said the properties have a total land area of 24,145.9407 hectares and were acquired either through a deed of donation or were turned over by the defunct Mindanao Development Authority.

The biggest parcel of land is the 24,000-hectare property in Wao and Bumbaran, Lanao del Sur that was acquired in 1981 but is now occupied by informal settlers.

The SPDA books also listed a 112-hectare fishpond project in Panigayan, Basilan and a 13.7915-hectare lot in Bagumbayan, Sultan Kudarat. Both properties were acquired in 1975 and 1982, respectively, but remain idle.

Others properties included in the COA report are located in Butuan City, Cotabato City, Davao City, Zamboanga City, and in the towns of Pikit and Libungan in Cotabato province.

The COA noted seven properties had no tax declarations, while two lots have no land title.

The COA said the SPDA had informed the commission that it has yet to appraise the properties to assess their real property values.

"The management also admitted the need to appraise the value of these properties as basis in recording for fair presentation in the financial statements, however, no action was made on the appraisal of these properties to date," the COA said.

"Failure of the management to appraise these items at its fair value violated (Philippine Accounting Standard) 16 and understated the land account in the financial statements," it added.

The COA recommended for the SPDA to prepare documents for the appraisal and titling of the lands to determine its real values and establish its ownership on the properties.

The SPDA, in response, had informed COA that it already made an initial inquiry to Land Bank of the Philippines for the appraisal of the parcels of land. — MDM, GMA News