COA flags 301 LGUs for using P1.6B in dev’t funds for salaries, travel, etc.

The Commission on Audit has called out a total of 301 local government units for using its development funds worth a combined P1.6 billion to cover for salaries, travel, and other operating expenses instead of improving facilities and infrastructure in their areas.

According to the 2017 Annual Financial Report on the Local Government, 126 LGUs spent P986.047 million of their developments funds for programs and projects not listed as a priority nor were these part of the planned capital expenditures.

The COA said another 175 provinces, cities, or municipalities used the funds not related to the development of their jurisdiction.

"The expenditures included salaries, honoraria, travel expenses, repairs and maintenance, and other operating and administrative expenses," the COA said.

Local government units are mandated under the Local Government Code to allot no less than 20 percent of its annual internal revenue allotment for development projects.

The Interior and Budget departments released Joint Memorandum Circular No. 2017-1 dated February 22, 2017 enumerating the allowable development projects where the fund can be utilized.

This includes the construction or rehabilitation of health centers, an LGU-owned potable water system, evacuation centers, local roads or bridges, the purchase of medical equipment, land relocation for informal settlers, and the development of alternative energy sources, among others.

The COA, however, said 516 LGUs with an accumulated development fund of P12.680 million have either yet to be utilized or have been delayed as of December 31, 2017.

It blamed "poor planning, lack of coordination with concerned offices and non-monitoring of the implementation of the development projects."

The COA said a further 26 LGUs lacked supporting documents for the disbursement of its P270.997-million development fund, while nine LGUs failed to specify the exact amount of the funds for last year.

The COA recommended for the DILG and DBM to strictly require LGUs to prepare their Annual Investment Programs with the detailed information of their planned development programs.

Local chief executives were also required by COA to the joint DILG-DBM memorandum circular on the use of the development funds, and urged them to seek approval from the local council first before using its lump-sum appropriations. —NB, GMA News