COA: Marawi LGU’s tax revenue up 220% to P6.7M before Maute-ISIS siege

Marawi City had been having a banner year in its tax collections for 2016 before clashes between government security forces and the ISIS-Maute group broke out, the annual audit report from the Commission on Audit (COA) said.

Two days before the terrorists' siege sparked, COA sent its audit report to the desk of Marawi City Mayor Majul Gandamra on May 21.

The COA report said the capital city of Lanao del Sur recorded a 220-percent increase in tax and fees collected from P2.1 million in 2015 to P6.7 million in 2016.

State auditors also gave credit to Gandamra's administration for complying with tax laws. He was also able to successfully remit the compensation of suppliers and contractors to the Bureau of Internal Revenue.

"The new administration of the City Government of Marawi is consistently deducting/withholding taxes on compensation as well as payments to suppliers/contractors and remits the same regularly to the BIR," COA said.

COA further praised the incumbent administration for its consistent remittance of contributions to the Government Service Insurance System (GSIS), Home Development Mutual Fund (Pag-IBIG), and Philippine Health Insurance Corp. (PhilHealth).

"The new administration of the City Government of Marawi is consistently deducting/withholding and remitting to the GSIS, Pag-Ibig and PhilHealth the premiums, contributions and other amounts due to these agencies in compliance with the respective rules and regulations of said institutions," it said.

In contrast, COA said Marawi City had unremitted collections worth P92.5 million during the term of former Mayor Fahad Salic.

As of June 30, 2016, COA said at least P47.5 million of the amount remained unremitted to BIR, P38.2 million to GSIS, P3.7 million to Pag-IBIG, and P3.05 million to PhilHealth.

“The delayed remittance of the monthly premium contributions …may result to unnecessary penalties, surcharges, and interests. Furthermore, the members/employees were deprived of the benefits and privileges due them,” state auditors said in the report.

Uninsured assets

However, COA also called the attention of the Marawi local government to its failure to insure its insurable assets as mandated under the Property Insurance Law.

COA said P124.3 million of the city's insurable assets have yet to be covered by the GSIS' General Insurance Fund.

COA said that because of this, the city government was deprived of "adequate protection/indemnification of properties against damage or loss in case of fires, storms, earthquakes or other unforeseen fortuitous even and forces of nature."

COA said among the assets considered insurable are buildings, office equipment, motor vehicles, and furniture and fixtures.

State auditors urged Gandamra to require a physical inventory of the city's insurable assets and request the GSIS to conduct an evaluation of the properties.

“In the absence of insurance coverage, the insurable assets are not fully protected against damage due to fire, earthquake, storm, or other fortuitous event,” the report said.

President Rodrigo Duterte declared Marawi City free from terrorists on October 17.

The Office of the President also approved a P14.5-billion increase in the National Disaster Risk Reduction Management Fund for the government's rehabilitation plans. — BM, GMA News