Saturday, August 09, 2008 Gov't center to undergo post-audit
A GOVERNMENT project as big as the P394-million Bacolod new government center (NGC) would be subjected to a Commission on Audit (COA) post-audit procedure, including the review of its contract.
The Negros Occidental Provincial COA said projects needed to be audited.
Last year a memorandum signed by OIC-regional cluster director Inocencio Cabahug and addressed to team 2 City of Bacolod State Auditor Sheila Portal, declared the costing of technical and engineering of the project as "reasonable."
The 2007 memorandum was presented to the media last August 6 by City Mayor Evelio Leonardia to dispel "malicious speculations" that the government center is ridden with graft and corruption through overpricing.
COA however said as a regular rule, its audit function is post-audit, which means that a transaction must be totally consummated before a post-audit could commence.
In instances where consummation of transaction is done through progressive billings, post-audit is done in parts also, the provincial COA explained.
In any case, a contract review like the 2007 memorandum to Portal is a must for a project as big as the NGC and at the consummation of payment, a post-audit review and evaluation of the project is in order, said the provincial COA.
In the post-audit review, what is stated in the contract and program of work must be in consonance with the actual accomplishment of the project.
Meanwhile, retired provincial legal officer Edgar Tuclaud explained that relative to the NGC issue are the contentious appropriation ordinance and the reconstituted land title of the NGC still pending in court.
Tuclaud explained that an appropriation ordinance is a legal prerequisite to any disbursement. "In my experience as legal officer, there are contracts that passed my office which I sought pre-audit opinion of COA. This is to avoid legal complications which a local government unit could encounter."
"Then, an appropriation ordinance is necessary before effecting disbursement based on said contract. For an urban city like Bacolod, all appropriation ordinances must then be submitted to the Department of Budget and Management (DBM). DBM sends corrective measures if it finds the ordinance erroneous," he said.
"Among the corrective measure of the DBM is for the project proponent to refund the money disbursed in an onerous contract for instance," he added.
In the case of an unresolved reconstituted title, Tuclaud cited his experience with the control tower of the old airport where he once worked as manager back in 1986.
"The Air Transportation Authority (ATO) did not construct the control tower until the Philippine Airlines submitted all pertinent papers, including ownership of its title." (Gil Alfredo Severino)
