Saturday, July 26, 2008 Town ‘misuses’ P.5M for projects By Gerome M. Dalipe Sun.Star Correspondent
THE Commission on Audit (COA) questioned the fund disbursement of Balamban town in southwestern Cebu amounting to more than P500,000 in 2007.
State auditors said the town officials failed to spend P270,000 for priority projects.
Likewise, COA, in its annual report, called the attention of the town officials for spending P280,000 for the “Lakbay-Aral” of several barangay officials, adding that the funds could have been used for projects or undertakings beneficial to the barangays.
State auditors added that some of the town’s disbursements of the 20 percent Local Development Fund (LDF) were made in violation of existing laws.
But Balamban Mayor Alex Binghay assured that there was an “optimum utilization” of the LDF, and the disbursements were in compliance with the memorandum circular of the Department of Interior and Local Government and the Department of Budget and Management.
The town officials had claimed that the funds released were for the payment of wages of municipal workers worth P177,120; traveling expenses, allowances and volleyball uniforms of players, among others, worth P67,091 and the payment of uniforms for day care workers worth P25,987.
In its post-audit of the town’s transactions, state auditors also noted the municipal government extended financial assistance of P10,000 each to 28 barangays totaling P280,000 in 2007.
State auditors urged the municipal officials to use the LDF to “achieve desirable socio-economic development outcomes.”
“The appropriations for development projects should not include items for personal services,” COA’s annual audit report read.
“One of the criteria for the grant of financial assistance is that the contemplated results should be advantageous to the agency concerned. Its benefits should accrue directly to the agency,” state auditors also said.
COA’s report also said that the amount could have been utilized for projects that were more beneficial and worthwhile to the barangays or the constituents.
