DILG yet to liquidate P7-B worth of fund transfers from Roxas term —COA report

The Department of the Interior and Local Government (DILG) has yet to account for more than P7-billion worth of fund transfers for various projects implemented under the term of former Interior Secretary Mar Roxas.

In its 2014 Annual Audit Report of the agency published recently on its website, the Commission on Audit said that as of December 31, 2014, the accumulated worth of unliquidated fund transfers of the DILG had already reached a P7.040 billion.

“The Receivables accounts accumulated to a huge amount of P7.040 billion because management failed to monitor the liquidations of the fund transfers and submission of the corresponding financial reports contrary to COA Circular No. 94-013,” the COA report read.

The audit body pointed out that under COA Circular 94-013, the implementing agency (IA) for a government project is required to submit within 10 days after the end of each month or within ten days after the end of the agreed period for the project, a Report of Checks Issued (RCI) and a Report of Disbursement (RD) to liquidate the utilization of the funds.

The Circular further states that the source agency (SA), in this case the DILG, must then draw a Journal Entry Voucher (JEV) to take up the reports. The IA shall return to the SA any unused balance upon completion of the project.

The COA said the accumulation of the unaccounted fund transfers was due to the management’s “non-monitoring of liquidations and submission of financial reports.”

The COA report said the funds were transferred to national government agencies (NGAs), local government units (LGUs), non-government organizations (NGOs) and/or private organizations (POs), as well as in DILG’s regional offices (ROs) for the supposed implementation of various projects such as the Provision of Potable Water program (SALINTUBIG), PAyapa at MAsaganang PamayaNAn (PAMANA), Bottom-Up Budgeting (BUB), Rehabilitation Assistance on Yolanda (RAY), and the Public Transport Assistance Program (PTAP).

“Fund transfers to NGAs, LGUs, NGOs/POs and Regional Offices (ROs) in the aggregate amount of P7.040 billion remained unliquidated… despite the completion of some of the projects/activities,” the COA report read.

“This is an indication that the DILG failed to monitor the implementation of the projects,” it added.

The said projects were implemented during the term of Roxas as interior secretary. Roxas resigned from the DILG in August 2015 to pursue his candidacy as the standard-bearer of the administration’s Liberal Party (LP) in May 2016 presidential election.

Cash advances

In the same report, the COA said the DILG still has P17.097-million worth of unliquidated cash advances accumulated since 2011.

“The cash advances granted to officers and employees totaling P17.097 million were not liquidated within the prescribed period, contrary to COA Circular Nos. 2012-001 and 2012-004,” the COA said.

Of the aggregate amount of unliquidated cash advances, P5.54 million was from the DILG’s Central Office (DO), which also houses the Office of the Secretary.

The audit body, however, noted that the management has already agreed “to require the immediate liquidation and settlement of all the cash advances and initiate the filing of criminal and administrative charges against the Accountable Officers (AOs)”.

'Completely transparent'

In a statement sent to reporters, Liberal Party (LP) spokesperson Akbayan Rep. Ibarra Gutierrez said the liquidation of the amount cited in the COA report is the responsibility of concerned LGUs.

“The entire amount has been downloaded to individual LGUs mainly as financial assistance for various BUB projects, and rehabilitation/reconstruction projects such as Bohol Earthquake Assistance and Recovery Assistance for Yolanda,” Gutierrez said.

“Responsibility for liquidation is with now the LGUs. Many projects are still being implemented and have thus not been liquidated. All these funds are fully accounted for and the entire process is completely transparent,” he added.

Binay hits Roxas

Meanwhile, the camp of Vice President Jejomar Binay scored Roxas’ alleged failure to oversee the liquidation of the agency’s funds, saying that it “speaks volumes” of the latter’s leadership capability.

“Mar Roxas’ track record as Secretary of the Interior and Secretary of Transportation and Communication speaks volumes of his executive abilities,” Mon, Ilagan, spokesperson of Binay’s political party United Nationalist Alliance (UNA) said.

“Kahit sa mga projects na wala namang technical knowledge ang DILG, kinukuha nila. Ngayon, hirap sila mag-monitor at mag-liquidate,” he added.

But Gutierrez, after stating the LP's position on the issue, challenged Binay to answer the corruption allegations against him.

“Now that we've given a full explanation of this issue, will VP Binay now be willing to give an equally clear and straightforward answer on the acts of corruption linked to him as thoroughly discussed in the Senate, Ombudsman, COA, and AMLC reports?” Gutierrez said. —with Kathrina Charmaine Alvarez/JST, GMA News