COA flags LTO for buying ‘expensive’ mobile phones, prepaid load worth P3.9 million

The Commission on Audit has flagged the Land Transportation Office (LTO) branches in National Capital Region (NCR) and Region 4A for spending as much as P3.98 million to purchase "expensive" mobile phones and "excessive" prepaid load.

In their annual audit report on Department of Transportation of which the LTO is an attached agency, state auditors noted that of the P3.98 million million, P3.3 million were used to purchase mobile phones while the rest were spent on prepaid load—all deemed unnecessary and excessive under COA Circular No. 2012-003 and considered non-responsive to the government's call for judicious and prudent use of government funds and/or resources.

The P3.3 million expenditure on mobile phone purchases is broken down to:

• 24 units of I Phone 6 plus each with 128 gigabyte storage worth P1.3 million (2015)
• six units of I Phone 6 plus each with 128 gigabyte storage worth P259,740 (2016)
• six units of I Phone 6 plus each with 128 gigabyte storage worth P263,940 (2017)
• five units of I Phone 7 each with 128 gigabyte storage worth P219,950
• 22 units of I Pad mini each with 64 gigabyte storage worth P611,600; and
• 46 units of other mobile phones worth P660,769

The over P649,000 worth of monthly cellphone cards allowances, on the other hand, is also considered as irregular expenses by the state auditors since such action was not approved by the CSC Regional Office as amendment to the LTO Program on Awards Incentives for the Service Excellence (PRAISE) which provides the granting of such benefits.

“The grant of cellular phones, tablets in LTO-NCR and postpaid mobile cellular phone units in LTO-Region IV-A—for the same purpose and objective considering serviceability status of existing units and corresponding issuance of more than one unit to an individual as well as to an individual holding the position lower than Division Chief rank—are deemed excessive and unnecessary pursuant to the provision of the above-stated COA Circular,” state auditors said.

“Moreover, it signifies the agency's non-responsiveness to the government's call for judicious and prudent use of government funds and/or resources,” state auditors added.

In the same COA report, the property section of LTO-NCR explained that the accumulation of 63 expensive cellular phones and tablets are the annual procurement of cellular units since 2015 was due to procurement of new units still proceeded regardless of whether the condition of earlier issued units are still serviceable or not, and the failure of the concerned officials and employees to return previously issued units upon receipt of the new one.

As for the prepaid load expenditures, COA said that the total P649,000 disbursement was also beyond the Civil Service Commission rule on granting incentives under the PRAISE program which only grants a prepaid load allowance worth P500 to each Service Chief, Division Chief and Section Chief in the performance of official duties every month

“The granting of the monthly cellphone cards allowances is considered as irregular expenses due to the non-approval of the said Resolution by the CSC Regional Office as amendment to the LTO PRAISE providing the granting of such benefits, thus not considered as legal bases for the granting of cell card benefits,” COA said.

In its recommendations, COA warned LTO against purchasing high-end or expensive cellular phones and/or electronic gadgets unless justified by circumstances.

Likewise, COA said the LTO should limit issuance of cellular phones to qualified official and employees which should not be lower than Division Chief rank; require concerned officials and employees to return cellular phones in excess of one unit whether serviceable or not to the Property Section and consider issuance of serviceable cellular phones to other qualified employees in need of the same in their work; and submit specific legal authorization on the grant of postpaid mobile phone lines.

COA said the LTO management agreed with its recommendations. — MDM, GMA News