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Thursday, March 30, 2006
COA asked: Revive pre-audit
By Linette C. Ramos
Sun.Star Staff Reporter
To prevent the loss of public funds and irregularities in government transactions, a Cebu City councilor wants the Commission on Audit (COA) to study the possibility of restoring the pre-audit system for all government expenditures and projects.
Councilor Edgardo Labella believes an audit of all government projects and transactions, before these are consummated, will effectively prevent flaws in the implementation of government projects.
The councilor said the pre-audit system is a good safeguard against loss of government resources, as this would caution public officials against entering into questionable deals that may violate regulations.
While a post-audit is effective in sanctioning government officials or employees who approved questionable transactions, Labella said it does not ensure that lost government funds or properties will be recovered.
To determine the legality and soundness of the proposed land swap with the Province, the City Council recently sought COA’s opinion on the matter before they approve the proposal.
Purpose
COA, however, refused to render an opinion, citing as grounds that it would not comment on any government transaction until the undertaking has already been approved.
Labella attributes graft and corruption mainly to the abolition of the pre-audit of government transactions and expenditures.
“With all due respect, the said reasoning does not seem to be in accordance with the purpose and intent for which COA has been institutionalized under the Constitution, that is to safeguard public funds and properties,” said Labella.
At present, COA, the government’s auditing arm and a watchdog of all public funds, revenues, properties and resources, audits
government transactions only after these have been carried out.
“Even though in many instances COA succeeded in bringing to justice those who are found to have committed irregularities or anomalies in the performance of their functions on one hand, the government had not been able to recover the funds subject of the loot or nefarious activities,” Labella said.
Warning
In a proposed resolution, he asked COA to conduct an in-depth study aimed at restoring the pre-audit system.
Article 9 of the 1987 Constitution states that “where the internal control system of the audited agencies is inadequate, the Commission may adopt such measures, including temporary or special pre-audit, as are necessary and appropriate to correct the deficiencies.”
While a pre-audit system has its disadvantage, such as the perceived delay in the delivery of public service and the possible collusion of auditors and public officials, Labella said it will help detect irregularities in transactions at an early stage.
For Bisaya stories from Cebu. Click here. (March 30, 2006 issue)
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