DOJ, DILG addressed COA findings cited by Duterte, past reports show

The Department of Justice (DOJ) and the Department of the Interior and Local Government (DILG) addressed the Commission on Audit (COA)’s findings on unliquidated cash advances and fund transfers, past reports by state auditors showed.

The findings of COA in its 2013 and 2014 annual reports resurfaced after President Rodrigo Duterte cited them in his defense of Health Secretary Francisco Duque III, whose agency was recently flagged by state auditors over its use of COVID-19 funds. 

Duterte said in a national address that the DOJ, headed by then-Justice Secretary Leila De Lima, had unliquidated cash advances in 2013, while the DILG had unliquidated fund transfers in 2014 under then-Interior Secretary Mar Roxas. 

"Mabuti na malaman ng Pilipino kung sino ang magnanakaw [It’s good for Filipinos to know who the thieves are]," he said.

However, COA’s 2014 and 2015 reports showed that the DOJ and DILG addressed most of the concerns of state auditors regarding their unliquidated cash advances and fund transfers.

COA’s annual reports include a section titled “Status of Implementation of Prior Year’s Audit Recommendations.”

DOJ’s cash advances

In 2013, COA flagged the DOJ over P66.99 million in unliquidated cash advances to officers and employees.

The following year, the DOJ told COA that its cash advances for travel and seminars, the Inter-Agency Council Against Trafficking (IACAT), and the Witness Protection, Security and Benefit Program (WPSBP) were “100% liquidated.”

“For advances granted under the confidential fund of [Office of the Secretary] and WPSBP, 98% are already awaiting credit notice while 2% are for submission to COA Central Office,” it added.

COA also said in its 2013 report that the grant and liquidation of cash advances for foreign travel were not properly documented. In 2014, the DOJ said it issued two memoranda to ensure the compliance of concerned officials and employees.

State auditors also flagged cash advances amounting to P18 million for the confidential expenses of the IACAT, noting that this exceeded the appropriation by P1 million. The DOJ later said the excess amount was refunded to the General Fund.

DILG’s fund transfers

Meanwhile, COA’s 2014 report said the DILG’s Receivables accounts ballooned to P7.04 billion “because management failed to monitor the liquidations of the fund transfers and submission of the corresponding financial reports.” 

The following year, the DILG clarified that its balance for 2014 was only P5.83 billion as the remaining P1.21 billion had been outstanding for several years.

The agency explained that the P5.83 billion was comprised of financial subsidies given to local governments for the implementation of various projects, adding that it reduced the said amount to P3.70 billion as of December 2015.

“The DILG continued to coordinate with the LGUs’ accountant to submit the duly verified Report of Disbursements to speed up the liquidation of the remaining balance,” it added.

Both De Lima and Roxas have dismissed Duterte’s latest comments against them and their former agencies as a “clear case of misdirection” and a “diversion” from the controversies hounding the current administration. — BM, GMA News