Council bares possible ‘anomalies’ at city hall-A A +A
Thursday, August 29, 2013
CITY OF SAN FERNANDO -- The committee on good government, ethics and public accountability of the city council on Wednesday noted the "questionable use or misuse of public funds in 2012 and 2013" by the City Government of San Fernando.
The committee, headed by Councilor Lito Ocampo, also noted of "alleged blatant disregard of controls and procedures as stated in the New Government Accounting System, and gross negligence in the performance of official duties."
In his report to the council during its regular session at Heroes Hall, Ocampo pointing out the "questionable use or misuse of public funds in 2012 (P85,976,289.12) and 2013 (P153,236,732.36) and planned purchase of supplies for the second semester of 2013 amounting to P19,437,537.63 despite of the large inventory of supplies amounting to P136,836,902.07 as of June 30, 2013."
The committee report, which was attested by vice-chairman Councilor Dein Henson and member Councilor Noel Tulabut, revealed that the estimated Cash Flow Statement for the second semester of 2013 shows the city having cash for the General Fund (as of June 30, 2013) amounting to P310,525,027.19 deposited at LandBank, while the estimated receipts from July 1 to December 31 amount to P389,074,877.22, for total available cash of P699,599,904.41 that can be spent for the second semester of 2013.
Of the P699,599,904.41, P594,783,742.64 or 85 percent was planned to be spent in the second semester of 2013, leaving a balance of P104,816,160.76 or 15 percent that can be planned for further spending.
Some P170,413,275.08 or 28 percent of the P594,783,742.64 is planned to be spent for the second semester of 2013 on “Miscellaneous/Maintenance and Other Operating Expenses.”
About P19,437,537.66 or 12 percent (P3,239,589.61 monthly) is to be spent for the purchase of office supplies, gas, oil, drugs, medicines and dental and laboratory supplies among others.
"The plan to purchase various materials and supplies amounting to P19,437,537.66 this second semester is highly questionable because as of June 30, 2013, the amount of stocks still on hand for the same items of inventory amounts to P136,836,902.07. Why will the Local Finance Committee recommend to the local chief executive the allocation of cash for this highly questionable expenditure if there are still large stocks on hand?" Ocampo asked.
He further said that the inventory of materials and supplies has increased significantly from P14,180,724.29 in 2011 to P85,976,289.12 in 2012, or an increase of 506 percent. The inventory balance as of June 30, 2013, Ocampo pointed out, amounted to P153,236,732.36 or an increase of 981 percent, equivalent to P139,056,008.07.
"That is why the continued plan to purchase materials and supplies further evidences the continued questionable use of funds as shown by the erratic consumption of these in our monthly comparison for the years 2012 and 2013," he added.
Ocampo said that "despite the reported large inventory of supplies, departments frequently experience the absence and lack of office supplies, while barangay residents' frequent clamor for water pumps and lands fillings are left unserved, and health centers complain of the frequent lack of medicines and unavailability of nebulizers and sphygmomanometers.”
The committee recommended that the local Commission on Audit (CoA) step into the ongoing inquiry on the city’s current financial status.
In Ocampo's report to the city council, he disclosed that aside from the COA, which will be asked "to discuss audit findings and recommendations with respect to spending on materials and supplies," the committee will also invite to Thursday's hearing City Human Resources Development head Rachelle Yusi "to clarify issues on possible violations of the Civil Service Law, particularly the neglect of duty and incompetence in the performance of official duties" of concerned parties.
Both are intended in aid of legislation, Ocampo said in his report to Vice-Mayor Jimmy Lazatin and the City Council, as the committee further wants "an investigation conducted if the continued purchase of materials and supplies resulting to the unusual build up of inventory shows possible anomalous transactions."
He said that during a committee meeting last August 1, Engr. Michael Quizon of the City General Services Office reported that as of May 31, 2013, the inventory of materials and supplies in custody amounted to only P14,532,065.97. Compared to inventory balances of May 31, 2013 amounting to P145,882,748.03 per accounting records, he continued, the "declared inventory of the CGSO showed an inventory shortage of P131,350,682.06."
"The committee needs to determine with other government agencies if there are possible violations of the Civil Service Law, particularly in the neglect of duty and incompetence in the performance of official duties, and an investigation should be conducted if the continued purchase of materials and supplies resulting to the unusual build up of inventory shows possible anomalous transactions," concluded Ocampo.