Friday, September 05, 2008 Town’s use of P1M loan questioned
THE Commission on Audit (COA) 7 chided the Tudela town government over the way it spent a loan from President Arroyo worth of P1 million for livelihood projects last year.
Regional state auditors said the amount was used to buy a fishing boat worth P400,000 and for its improvement worth P43,869.
Likewise, COA 7 rebuked a former town official for failing to return two cellular phones issued to him last year worth P35,000 after losing in the 2007 elections.
“Had the agency properly implemented the loan from the President’s Social Fund… maximum benefits could have been delivered for its constituents,” COA 7 said in its annual report.
The town accountant admitted there is no records on file that can help trace how the money was spent, or how the boat looked.
Former Mayor Rogelio Baquefo received the amount sometime in 2004 despite the absence of the memorandum of agreement (MOA).
The loan was intended for the small-and-medium enterprises (SMEs) under the “Isang Bayan, Isang Produkto, Isang Milyong Pisong Programa ni Pangulong Arroyo” program.
The Presidential Management Staff (PMS)-Office for Special Projects asked Baquerfo to submit an official receipt of the amount and the loan agreement.
Rival
But Mayor Demetrio Granada, political rival of Baquerfo, wrote PMS about the absence of MOA for the loan.
“At present, nobody in town could give information if there was a loan agreement executed between the town government and the PMS for loan,” COA 7 said.
In its 2004 audit report, COA 7 confirmed the loan was used to purchase a fishing boat worth P400,000 and for its improvement worth P43,896.
That time, the boat had been damaged beyond repair, COA 7 said.
COA 7 said the “unconscionable” spending of the loan resulted in wasted public funds.
“Various deficiencies were also noted in the procurement of (the) fishing boat and the purchase did not undergo proper public bidding,” COA 7 said.
Auditors said there was no document for the utilization of loan balance amounting to P556,131. There was no document to say how the loan was spent at all.
COA 7 said town officials should have properly documented the loan receipt as mandated by the Office of the President and held themselves accountable for the loan balance.
Also in the same report, COA 7 asked former councilor Leo Gorgonio to return the cellular phones to the town’s property custodian after he lost in the elections last year.
Gorgonio failed to return the phones when he should have because he is no longer with the government. This is a violation of Presidential Decree 1445, COA 7 said.
The municipal accountant said he informed the municipal treasurer that he requested Mayor Granada to prepare a demand letter for Gorgonio to return the phones. (GMD)
