MikeLigalig.com

By: Bohol Chronicle

Tagbilaran City Minority Kagawad Zenaido "Djingo" Rama exploded a bombshell in the halls of the Sangguiniang Panlungsod Friday utilizing the 2007 Commission of Audit (COA) Report - that calls into question City Mayor Dan Lim and his administration for the multi-million fund mess.

During a scathing privilege speech, Rama selected six items in the COA 2007 Report involving a total of P320 million funds: P138 million in questionable items and P 182 million in city funds not properly invested - all with specific violations against the law.

He placed the burden at the doorstep of Mayor Lim who Rama claimed anointed himself "father of the

city" to put his house in order and to deal with erring personnel according to the law. The Minority legislator threatened to file appropriate charges against anyone involved in the mess and to dig deeper into other perceived anomalies within City Hall.

As a result of this "monetary and fiscal irresponsibility," the COA had reportedly issued a "qualified opinion" on the true state of the finances of the City of Tagbilaran under the Consolidated General Fund Report - questioning therefore, in layman's language, the financial statements ' validity.

Observers are wary as to how the multi-million expose and the lack of credibility of the financial statements of the city will affect the application for the so-called "jumbo loan" of the City Mayor reportedly from the Development Bank of the Philippines.

P60-M PROPERTY PLANT,
EQUIPMENT UNVERIFIED
The COA Report said that P P60-million worth of equipment could not be subjected to inventory counting and that the City Government did not submit the details of P338 million in Property, Plant and Equipment (PPE).

Thus COA could not, as a result, determine what was bought and sold in 2007 and Rama therefore questioned the basis for a P15.8-million depreciation used. The legislator questioned why the PPE list is being kept secret.

This is a violation of Section 124 Vol. 1 of the New Government Accounting Extension - and effectively may have overstated the PPE and understated expenses.

P25.8-M QUESTIONABLE INVENTORY
In violation of Section 56 of NGAs Manual Vol. II and Section 22 (2) of PD (1445), the City Government failed to submit a Summary of Supplies and Materials and some P25-million worth of inventory could not be verified. According to the COA Report such failure to submit physical inventory should result in "automatic suspension of salaries" of personnel concerned which Rama said they have yet to see.

Rama deplored that such violation could overstate inventory and understate expenses and effectively shield those accountable for "the expense side" from scrutiny.

P6.5-M UNLIQUIDATED ADVANCES
In violation of COA Circular No. 97-002 regarding advances, some P6.5 million in advances was reported unliquidated by certain City Hall officials and employees. This would overstate income and understated expenses of the City, he said.

"Who are the officials involved?" Rama questioned.

P43-M UNCOLLECTED RECEIVABLES
Meantime, the COA Report revealed that some P33.5 million (Due from Other Funds) and P9.5 million (due from Other LGUs) were kept in the hands of other entities by the end of 2007 - depriving the city of funds to finance its socio-economic projects.

Kagawad Rama demanded that those with unliquidated advances and those responsible of depriving the city of legitimate projects be held accountable.

Further, the COA Report stated that intelligence funds, directly addressed to the Honorable Chairman of the Commission on Audit in Quezon City, is recorded upon receipt of Credit Advice.

P3.3M NOT GIVEN TO BRGYS
Deploring the neglect of the small barangay units, Rama hit the non-release of P3.3 million due to barangays in spite of the fact that the city, by its own Financial Statements, declared itself to be awash with funds worth P182 million by the end of December 2007.

The COA Report said that this is in violation of Section 271 of the LGU Code (1991) which requires that these funds from government community tax shares and miscellaneous income should be released five days after the end of each quarter, without further action, to the Barangay Treasurers.

This withholding of funds was deemed detrimental to the welfare of the small-time barangays.

P182M NOT INVESTED
In violation of COA Circular No 92-382 (July 3, 1992) which mandates the investment of government funds in high-yielding instruments, the COA cited that the City Government was holding P143 million of the P183 million cash in zero-interest earnings for the City since this was in the form interest-free checking account.

Kagawad Rama argued if this P143 million was invested in a 6% p.a. yielding instrument - this would have yielded the City Government P8.6 million in interest earnings to be used for government projects. The bank who benefited from the P143 million checking account may have relent this to borrowers at 12% earning for the bank P17 million and zero for the Government.

This is grossly unfair to the city of Tagbilaran, Rama concluded.

CALL FOR ACTION
Kagawad Rama demanded that the SP be given an update on the multi-million mess cited by the COA and that the people responsible be reprimanded, suspended or charged as the cases may warrant. He especially questioned what "is the real state of the city finances" given these huge discrepancies discovered by the COA that could drastically affect both the Balance Sheet and the Profit and Loss statements of the City.

"Shall we see more of the same in the next 2008 COA Audit Report?" Kagawad Rama asked.

CITY ACCOUNTANT DEFENDS
City Accountant Kurt Bungabong defended the city governance by saying the COA report was more of a "comment on malpractices" rather than amount being misused.

The city hall accountant was commissioned by the city mayor to answer Rama's privilege speech during his weekly radio program yesterday.

He cited the lack of proper inventory of equipments which he said even dates back to the equipments acquired by the previous administration.

On the P6.5-million unliquidated advances by city hall officials and employees, he said the amount is "tolerable" as running liquidations have been done.

He also mentioned that the COA and the city mayor have agreed in principle not to suspend the payment of salaries of those involved personnel which was contrary to the COA rulings specified in the report.

The Sangguniang Panlungsod is asking City Auditor Teresita Irig to appear during Friday's regular session.

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=16237.0