|
Thursday, August 10, 2006
COA warns officials of 2 Cebu towns
By Aledel Gonzalez-Cuizon
Sun.Star Staff Reporter
The Commission on Audit (COA) 7 is advising officials of the Municipality of Cordova to strictly follow conditions in granting benefits to its employees.
This after state auditors found that the payment of at least P1.2 million worth of additional benefits and cash gifts to officials and employees of the town in Mactan Island was against budget rules.
COA also gave a similar warning to the Municipality of Consolacion, which granted cost of living allowance (Cola) differentials to employees and elective officials worth some P1.15 million last year.
The annual audit report on the town’s operations states that the granting of the Cola had no legal basis and was against budget rules.
State auditors also noted that the fertilizer Consolacion town purchased was overpriced by at least P200,000.
Using its formula for computing “price reasonableness,” COA said the fertilizers were 733 percent excessive.
COA recommended the refund of the overpriced amount by all officials responsible for the release of the fund.
In the case of Cordova, the municipality released some P780,335 and extra cash gift worth P465,000.
For 2005, the appropriation allowed for personnel services was only P14.94 million but the total amount appropriated for personnel services, excluding the additional benefits, already reached some P16.13 million.
A memorandum of the Department of Budget and Management (DBM) states that appropriations for personnel services of a local government unit in a year must not exceed 45 percent (in the case of first to third-class provinces, cities and municipalities) and 55 percent (for those classified as fourth class or lower) of the total annual income from regular sources of the preceding year.
A review by the Provincial Board (PB) on the town’s supplemental budget covering the additional benefits stated that the granting of such benefits should be subject to the DBM memorandum.
The COA report, however, did not recommend the refund of the amount.
“The municipal officials responsible for the preparation and approval of appropriations for the payment of the additional benefits should observe strictly the conditions set forth in the memorandum or circular granting the benefits to avoid inappropriate disbursements,” the report stated.
The report did not include a comment from the Cordova municipal government.
Meanwhile, COA’s report on the Municipality of Consolacion states that the granting of the Cola differential is prohibited under a DBM circular issued in 2005.
It states that all officials and employees who authorize the granting of Cola and other allowances integrated in the basic salary shall be held liable and will be dealt with accordingly.
A review by the PB on the supplemental budget of Consolacion states that the Cola will be disallowed because it violates the budget circular.
In response to the audit observation memorandum of COA regarding the granting of Cola, Mayor Avelino Gungob Sr. said the release of the benefits was based on a Supreme Court ruling.
He said the DBM circular only prohibits the Cola integrated in the basic salary.
Gungob said that in Consolacion’s case, the Cola was not integrated in their salaries from 1989 to 1999.
However, COA still believes that the disbursement should be disallowed as it is “bereft of legal basis.”
COA recommended that the granting of Cola must be stopped and the PB’s review “should be considered in the disbursement of public funds.
State auditors also noted Consolacion’s purchase of overpriced fertilizers last year.
About 166 bottles of liquid organic fertilizer were purchased at P1,500 per bottle but a canvass of prices of other local suppliers states that a similar fertilizer is available at an average price of P180 per bottle.
Instead of paying some P29,880 for 166 bottles prices at P180 each, Consolacion paid P249,000 for the fertilizers.
In an inspection last February, it was learned that only 48 liters were delivered.
“Therefore, time is not of the essence for the purchase through negotiated procurement,” the report stated.
But Gungob justified that the transaction is a negotiated purchase since the supply of the fertilizer was offered by the Department of Agriculture (DA).
Since the DA regional director knows more about the nature and pricing of fertilizers, the municipal government had to accept it “as this is the nature of a grant or goodwill from the national government.”
However, COA said the mayor is still responsible for the use of government funds.
For Bisaya stories from Cebu. Click here. (August 10, 2006 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
