COA orders bank transactions of Bry. Tisa, 20 others suspended; villages stalled

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Thursday, February 13, 2014


THE Commission on Audit (COA) issued a notice of suspension on all bank transactions of Barangay Tisa and about 20 other barangays.

Tisa Barangay Captain Phillip Zafra fears this will paralyze regular transactions in the barangay because this also means that it cannot encash checks for the salaries of the barangay staff and workers.

“The notice was given to the previous administration prior to the elections. Last week, I got a call from the Land Bank of the Philippines (LBP) informing us of the notice of suspension,” said Zafra.

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The bank was informed by COA not to honor the Punong Barangay Certificate (PBC) of Tisa and about 20 other barangays that were given notices of suspension by COA.

Incidentally, Sun.Star Cebu chanced upon former Tisa councilor Eduardo Cabulao at the Cebu City Hall yesterday.

Cabulao said the barangay treasurer already knows about the notice and it is just a matter of submitting the appropriate records.

Cabulao’s wife, Teresita, was the barangay captain when the notice was issued.

Zafra said there was no proper turnover from the previous administration when he assumed office on Dec. 1.

Zafra defeated in a close fight Eduardo in the Oct. 28 barangay elections.

Zafra said he already sent COA a letter asking for a reconsideration of the notice of suspension.

He also sent former barangay captain Cabulao a demand letter to comply with the requirements asked for by COA.

Requirements

According to COA Circular 2012-005, the barangay treasurer should submit to COA duplicate copies of checks (used in barangay transactions) and PBC for recording in the books of accounts and the preparation of barangay financial statements.

The records have to be submitted to COA, which has direct audit jurisdiction over the
barangay.

Zafra, who is also the president of the Association of Barangay Councils (ABC) Cebu City Federation, said there are 20 other barangays that were given notices from COA.

But he did not name the barangays. Most of these barangays did not have proper turnover because the previous administration lost in the last barangay elections.

Sun.Star Cebu randomly called barangays to ask if it received any notice from COA.

Uninformed

Barangays Apas, Ermita, Day-as, Kamputhaw, Poblacion Pardo and Tinago, claimed they were not informed of any notice of suspension from COA.

The PBC is an oath issued to government depository banks to honor or encash checks issued.

Zafra said the bank was given a notice not to honor the PBC of Barangay Tisa.

While it has serious repercussions to the barangay, Zafra said compliance is more on paper works.

He is confident that Tisa can comply with the requirements in time for the regular release of salaries this Friday.

Published in the Sun.Star Cebu newspaper on February 13, 2014.

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