Thursday, December 13, 2007 COA, Congress’ nods needed to drop fines
IF the Commission on Audit (COA) or Congress allows it, the Metropolitan Cebu Water District (MCWD) may write off up to P73.3 million in surcharges and penalties imposed on the Cebu City Government.
MCWD General Manager Armando Paredes said that like local government units (LGUs), water districts are also governed by COA rules because they are also considered government entities.
If COA rules keep the City Government from paying its P81.1 million debt to MCWD, the same agency also prohibits MCWD from writing off the penalties, he told Sun.Star Cebu.
The City has unpaid water bills amounting to P7.9 million, which have accumulated since 1975 and incurred penalties and surcharges of two percent a month.
“It’s also COA that approves the scrapping of surcharges and penalties. If COA says LGUs should not pay the penalties and they will allow water districts not to collect, then we will just drop it,” Paredes said in a phone interview yesterday.
He added that the write- off may even need approval from the House of Representatives, which approved the law on the creation of water districts, because of the huge amount involved.
Any write-off of debts amounting to more than P10,000 needs Congress’ approval unless the rules have been amended.
Paredes said, though, that it will depend on the MCWD board on whether or not they will recommend a write-off.
MCWD Board Chairman Juan Saul Montecillo, also consultant of Mayor Tomas Osmeña, could not be reached for comment yesterday.
COA Legal Department officer-in-charge Nilo Pala said they will wait for any referral of the matter from either the City Government or MCWD before they give a legal opinion on the matter.
Only the central office can give the legal opinion, he added.
City Administrator Francisco Fernandez said that much as they want to, City Hall cannot pay the debt owed to MCWD because of the COA restrictions.
“This is an unpaid debt of previous administrations because as far as I know, we’re faithful in paying our debts. But if these are surcharges, then we cannot pay it because COA does not allow that. Penalties become a personal liability of whoever caused the delay of the payment,” Fernandez said. (LCR)
