Friday, July 04, 2008 COA raps Toledo on failure to pay loan from NHA
THE Commission on Audit (COA) called the Toledo City Government’s attention on its failure to pay a loan for its socialized housing project and social funds worth more than P4 million.
In its annual report, state auditors said the failure by the City Government to pay for its quarterly loan amortization of P3.1 million from the National Housing Authority
(NHA) resulted in a bloated bank interest of P100,378 as of October 2007.
The City Government secured a loan from the NHA for the implementation of its socialized housing project worth P3,130,064.
Under the agreement, the City is obligated to allocate more than P3 million for the “items of work,” payable in 10 years with an interest rate of nine percent per year.
“Our verification disclosed that the fund was not recorded as loans but as trust liability in the trust book,” COA said in its report.
The City Government, instead, used the loan to fund another housing project, Tubodville Housing Project, in Barangay Tubod, Toledo City.
Tubodville Housing Project is the site of a Gawad Kalinga housing project.
When sought for comment, Mayor Arlene Zam-bo said the housing project was given to her by former third district congressman Antonio Yapha Jr.
Zambo said she was “clueless” that the housing project was initiated through a loan agreement with NHA.
But, she said they will continue the housing project because numerous beneficiaries have started occupying the houses. She said the City Government will shoulder the housing program cost.
State auditors also found that the payment for job-order workers, worth P29,600, were taken from fund allocations of the NHA, a violation of the agreement.
“Payment should have been taken from the proceeds of the sale of lots to the beneficiaries as stipulated in the loan agreement between the City Government and NHA.
However, there was no contract between the City and the beneficiaries that the beneficiaries would have to pay the (City Government) for the lots they occupy,” the state auditors said.
Unresponsive
COA said it already issued an audit observation memorandum last Jan. 21 but the City Government remained “unresponsive.”
“Concerned city officials should settle their obligations to the NHA to avoid (incurring) additional interest and surcharges. Penalties and surcharges imposed shall be the personal liabilities of responsible officials,” COA said.
COA also warned that the City Government might be held civilly and criminally liable for its failure to pay a P1-million loan from the President’s loan assistance for micro, small and medium enterprises.
“The failure of the City Government to comply with the provisions of the agreement, particularly the repayment of the loan, may result in the revocation of the agreement and may hold the City liable for damages and penalties,” state auditors said.
The mayor, however, blamed the mess on cooperatives who still failed to settle their obligations with City Hall. Zambo said she will return the remaining P300,000 to the NHA.
State auditors also reported that cash advances amounting to P9.5 million of some City Hall employees remained unsettled.
Advances
Zambo issued a memorandum prohibiting the release of cash advances to City Hall employees who have not yet settled their previous accounts.
“However, in the review of the disbursement vouchers covering cash advances, it was noticed that there were some vouchers with the notations that the claimant has unliquidated cash advance but ‘Ok to the mayor’,” COA said in its report.
“The rules and regulations on the granting and utilization of cash advances should be strictly adhered to. Failure to liquidate cash advances should be a ground for the withholding of any money due the personnel concerned and they may likewise be held criminally liable,” COA said.
Zambo admitted having an unliquidated balance, particularly in her intelligence fund. The mayor said she already sent her liquidation report to the COA central office but she has yet to receive a reply.
She said some other City Hall employees and former councilors also failed to liquidate their cash advances. (GMD)
