LGU used only P10.26M of Marawi aid in 2017, COA says

Only P10.26 million of the P39.7 million worth of donations received by the local government of Marawi City was utilized in 2017 to benefit residents displaced during the encounter between the military and the ISIS-inspired Maute group last year, the Commission on Audit said.

The COA said donations from various local organizations, individuals, and government offices poured into Marawi City since the start of the armed conflict on May 23, 2017. However, around P29.43 million remains unspent as of December 31, 2017.

"Considering the purpose of the cash donation which is intended for aid, relief, and respond services to Marawi evacuees, the low rate of utilization of the donations defeated its purpose," the COA said in its 2017 audit report.

The commission directed the Marawi government to create a program of work for the efficient use of the cash donations for the immediate benefit of affected residents.

Marawi management explained that the P10.26 million was used for the purchase of relief goods, while the unspent amount has been allocated for rehabilitation and recovery programs and address the other needs of evacuees.

The city government, nonetheless, vowed the funds will be utilized in compliance with the specific intent of each donor. 

Meanwhile, state auditors also flagged the city accountant's failure to record P11.9 million worth of cash donations in Marawi City's books under the Trust Liabilities-Disaster Risk Reduction and Management (DRRM) Fund.

This includes a P10.2 million donation from Land Bank of the Philippines while the rest came from the League of City Mayors (P200,000), the local government of Cadiz City (P500,000), and Senator Aquilino "Koko" Pimentel III (P1 million).

COA rules require the issuance of official receipts for each cash donation, which will then be deposited to an authorized government depository bank under a separate account for DRRM funds.

However, the COA said the city accountant failed to review these donations and include the receipts in its records, therefore resulting to the understatement in Marawi's books of accounts.

"We recommended that management require the City Accountant to record the said receipts in the books of accounts and submit to the auditor the related Journal Entry Voucher," the COA said.

The city treasurer admitted the deficiency, but assured the COA audit team that all receipts are still intact. He said the full amount has been deposited in the bank in January 2018.

At least 28,000 Marawi City residents remain displaced from their homes one year after the armed conflict.

Government estimates that P72 billion to P75 billion would have to be spent to rebuild Marawi and the towns of Butig and Piagapo in Lanao del Sur. —KG, GMA News