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Thursday, August 25, 2005
Poro town officials in P4.5M mess
By Jeanette P. Malinao
CEBU CITY -- Officials of Poro town in the Camotes group of islands were asked to refund immediately 92 percent of the P4,999,500 they used to buy liquid organic fertilizer, which the Commission on Audit (COA) considered excessive and overpriced by 1,092 percent.
In their 2004 report on the operations of the fifth-class town in northern Cebu, auditors revealed that an overpayment of P4,580.375 was made for the transaction.
The town could have bought the fertilizer at P125.75 per bottle, instead of the P1,500 per bottle it paid to Perzebros Co.
The purchase was "to increase corn production and improve the economic condition of the farmers," and local officials considered the purchase of 3,333 bottles of liquid organic fertilizer as "urgent."
They bought these through direct purchase or without bidding.
With this, COA is asking them to explain why only 586 bottles were distributed as of Dec. 31, 2004, when it was supposed to be urgent.
COA also found the purchase "irregular, unreasonable and exorbitant." It was funded from Representative Joseph Ace Durano's countrywide development fund, which was coursed through the Department of Agriculture. (Durano has been named tourism secretary.)
Aside from overpricing and the absence of bidding, COA also noted several other deficiencies in the transaction.
The Municipal Council approved a resolution authorizing the mayor to a direct purchase of the product on May 13, 2004.
That was the same day of the "delivery and acceptance of goods."
Partial payment of P3.2 million was given to Perzebos Co., which COA noted as a "newly started business," the day after the delivery.
Also, the goods were not stored safely, as these were placed only at the local government unit's lobby, and there was also no inventory of these.
The copy of the agreement, on file, is not signed.
The COA report cited the mayor's written justification for the lapses: "lack of trainings and seminars."
COA listed 12 town officials as liable for the purchase:
* Mayor Edgar Rama, for signing his approval that the expenses were necessary and lawful;
* Vice Mayor Ronald Carcellar and Councilors Ruben Estrera Jr., Gorgonia Gonzales, Sergio Zurita, Nilo Gorgonio, Gregorio Dorog, William Surbano and Charry Costas, for giving authority to the mayor for a direct purchase;
* Municipal Accountant-designate Ma. Roberta Ramos, for certifying as to the completeness and propriety of supporting documents; and
* Former municipal treasurer Helen Cabonegro and Municipal Treasurer Anna Lissa Booc, for signing the voucher for the availability of the released funds.
COA is asking Poro town government to submit a listing of identified beneficiaries.
Aside from the questionable fertilizer purchase, COA also noted other violations including unliquidated cash advances, "inaccurate and unrealistic" portions of income accounts, and a questionable P1-millionloan from the President's Social Fund.
The cash advances amounted to P703,509. Of the amount, COA doubts if the town could still collect the P407,790, since the accountable officers for this already died. The remaining amount was granted for travel and intelligence purposes. COA warned against the grant of more cash advances to those who still have to settle outstanding obligations.
As for the P1-million loan, it was recorded as "financial assistance" instead of loan.
The treasurer and the accountant said, "the check was received ahead of the agreement, and no document was given for signing when the amount was received."
The memorandum of agreement about the loan that is on file is "undated and signed by the mayor only."
The loan is payable in three years with 10 percent interest.
Until now, the town has yet to pay for it.
The loan was for the implementation of President Arroyo's one-town, one-product program.
But records show that portion of the money was spent for purchase of fishing materials and fishing boats for 10 coastal barangays.
The Municipal Government told COA that they will collect the money back from the fishermen, but COA said the municipal accountant "failed to establish" a loan receivable from fishermen's organization.
Because of this, the COA asked Poro to submit a copy of the loan agreement between the mayor and the fishermen, and submit copies of the recipient organization's accreditation and Securities and Exchange Commission registration papers. (Sun.Star Cebu/Sunnex)
(August 25, 2005 issue)
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