Village chiefs ignore P6M realty taxes


CEBU CITY -- More than P6 million in realty taxes went uncollected in 2007 by six barangay captains in Mandaue City and constituents were deprived of its possible uses and potential interest income, said a recent report by the Commission on Audit (COA).

One treasurer collected his barangay’s share on the last day of 2007, while another barangay only learned of its share of more than P1 million when City Hall’s accounting personnel called its office the year after that.

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“It was an adjustment period, as some newly elected barangay captains were not aware of it,” said City Administrator Briccio Boholst. He assured this was corrected in 2008. Barangay elections were last held in October 2007.

COA advised the barangay captains to ask the accounting office for the quarterly release of each barangay’s share of the real property taxes.

COA further recommended the release of the share from previous years, to enable the barangay to use the funds.

Tabok barangay captain Dario Tariman said the problems were part of the “transition period” from the Ouano to the Cortes administration in Mandaue City.

25 percent share

COA identified the six barangay captains who failed to collect their real property taxes on time as Canduman barangay captain Leo Jabas, Centro barangay captain Fiorello Latonio, Ibabao-Estancia barangay captain Carmelino del Mar, Pagsabungan barangay captain Andres Suson, Tabok barangay captain Dario Tariman and Umapad barangay captain Zaldy Lumapas.

The COA report stated that the uncollected funds represent the barangays’ 25 percent share of real property taxes (RPT) and community taxes for 2007. The funds were deposited with the City Treasurer and were not withdrawn and transferred to the barangays’ bank account.

Instead of a quarterly release, Barangay Canduman’s P1.5-million share was released only on December 31, 2007. Barangay Centro has an outstanding deposit of P1,010,952.50 for that year and Barangay Pagsabungan has an outstanding deposit of P823,393.52.

According to the report, Barangay Tabok’s treasurer only learned about their 2007 share of P1,358,299.58 when the city accounting personnel called them during the second quarter of 2008.

Share

The report further stated that the barangay’s personnel were not informed by their predecessors about how to process the release of the barangay’s share.

The amount of uncollected real property taxes before the end of
December 2007 was P5,925,567.60 plus Barangay Umapad’s share.

“Section 271 of Republic Act (RA) 7160 or the Local Government Code provides that 25 percent of the proceeds of the basic real property tax collected shall accrue to the barangay where the property is located,” said the COA recommendation sent to Ibabao-Estancia barangay captain Carmelino del Mar.

The COA report further said “the share of each barangay shall be released, without need of any further any action, directly to the barangay treasurer on a quarterly basis within five days after the end of each quarter.”

Boholst said the lapses were already corrected and that the barangays’ shares are now routinely released every quarter.

When Mayor Jonas Cortes took over, Boholst said, he immediately ordered all finance officials to release the funds.

Tariman said when he assumed as barangay captain of Tabok, he repeatedly followed up on the release of their share. He blamed the transition period at that time for the delay. (OCP of Sun.Star Cebu)