Friday, June 27, 2008
Mandaue misused funds: report
By Oscar C. Pineda
Sun.Star Staff Reporter
MANDAUE City’s 20 percent Development Fund, totaling P7.4 million, was spent not in accordance with DBM-DILG joint memorandum circular, the 2007 audit report revealed.
A review of the City’s current status of appropriation, obligations and balances revealed that the 20 percent Development Fund paid for the following: repairs and
maintenance of public buildings; training and seminars; repairs and maintenance; refurbishments of offices; purchase of equipment, computer, cellphones, furniture and fixtures; and assistance to senior citizens.
Purpose
The 20 percent Development fund, as per DILG-DBM joint memorandum dated Sept. 25, 2005 should cover projectsthat shall contribute to the attainment of desirable socio-economic development and environmental management outcomes.
It must also be spent “to partake of the nature of investment and capital expenditures and must take into consideration cost recovery and entrepreneurship.”
The joint memorandum circular also stated that appropriations for the development projects “shall not include items for personal services.”
Deprived public
These expenses, the report found out, did not fall under the allowed projects mentioned “thus depriving intended beneficiaries of the fund.”
The audit report also mentioned unnecesary interest expenses of about P1.5million, which is 15 per cent advance payment to a contractor for the completion of the Mandaue City Public Market. Another unnecessary interest involved the unused garbage bins bought through loans.
The report reminded the city that funds should be limited to expenses needed in the City’s operations.
“Interview with concerned personnel revealed that they were not aware of the regulations and promised that they will follow the regulations starting 2009 transactions, considering that they already prepared the annual investment plan for 2008,” the report further revealed.
In its recommendation, the COA said: “Expenses which do not fall within the provisions of the memorandum should be charged to the General Fund proper account.”
For Bisaya stories from Cebu. Click here. (June 27, 2008 issue)
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