It's your weekly compendium of foolishness and corruption in the Philippine government.
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| https://news.abs-cbn.com/news/08/13/21/coa-flags-dswd-over-unused-p780m-intended-for-cash-aid |
A total of P780.71 million in funds given to the Department of Social Welfare and Development (DSWD) for cash assistance to pandemic-hit Filipinos was not utilized because of "insufficient validation process," denying aid to 139,300 qualified beneficiaries, a new Commission on Audit (COA) report showed.
Government auditors noted in the 2020 report on the DSWD that its field offices in Regions 2, 7, 8 and the Cordillera Administrative Region reported unutilized amounts for the program intended for individuals whose livelihood and income sources were affected by the COVID-19 pandemic.
The total amount could have been given instead to an estimated 139,300 beneficiaries who could have qualified under the government's social amelioration program (SAP).
“Given the scarcity of government resources for COVID-19 expenses, there is a dire need to properly evaluate targeted beneficiaries through proper coordination and monitoring, and proper and efficient validation that could maximize the number of qualified beneficiaries who could benefit from the SAP,” the audit report said.
In the same audit report, unliquidated SAP fund transfers from local government units amounted to P4.363 billion.
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| https://www.gmanetwork.com/news/news/nation/799093/coa-flags-ltfrb-over-using-only-1-of-p5-5b-funds-for-drivers-assistance/story/ |
The Commission on Audit called out the Land Transportation Franchising and Regulatory Board for using only 1 percent of the P5.58 billion funds allocated to the benefit program for drivers amid the COVID-19 pandemic.
In its 2020 report, COA said the LTFRB only used around P59 million of the P5.58 billion funds of the agency’s Service Contracting Program.
“Delays in the implementation of the Service Contracting Program ranging from two to 10 weeks as at December 31, 2020 resulted in the minimal fund utilization of only P59,720, 089 or 1.07% of the total project fund,” the COA said.
It added that this also delayed the intended benefits to the PUV drivers and operators, who are the beneficiaries of the program.
Also, the state auditor also pointed out that only over 29,800 drivers or 49.79 percent of the 60,000 targeted driver participants were registered in the program as of the end of the year.
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| https://newsinfo.inquirer.net/1473088/coa-also-scores-doh-wastage-of-meds-supplies |
The Commission on Audit (COA) has found that the Department of Health (DOH) had procured P95.15 million worth of medicines and medical supplies that were not being used because they were either expired, soon to expire or were just held in warehouses.This is a “recurring problem” that is resulting in “indiscriminate wastage of government funds and resources,” the COA said in its Aug. 11 audit report.
The latest COA report dealt another blow to the DOH which has come under criticism and scrutiny due to deficiencies in its use of a P67.323-billion fund for pandemic response.
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| https://newsinfo.inquirer.net/1473706/dole-flagged-for-poor-covid-19-fund-control |
“Insufficient internal control measures” in granting aid to workers affected by the pandemic have led to excessive payments, denied claims, and unclaimed cash aid in money remittance centers.
These were among the issues raised in the 2020 report of the Commission on Audit (COA) on the Department of Labor and Employment (Dole).
The COA looked into the Dole’s COVID-19 programs under Republic Act No. 11469, or the Bayanihan to Heal As One Act, such as the COVID-19 Adjustment Measures Program (Camp), Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers #Barangay ko, Bahay ko (Tupad #BKBK), and Abot-Kamay ang Pagtulong (Akap).
Camp and Akap involved the grant of P5,000 and P10,000 financial assistance to affected workers and displaced overseas Filipino workers, respectively. On the other hand, Tupad #BKBK provided a 10-day emergency employment for displaced workers.
The Dole utilized P7.267 billion of its P7.310-billion allotment for the three aid programs, but state auditors observed several deficiencies, such as P1.023 million in multiple payments of cash aid.
The excessive payments were given to 213 Camp, Akap and Tupad #BKBK beneficiaries in the Cordillera Administrative Region (CAR), Regions 1, 2, 3, 4A, 8 and 9, and the Philippine Overseas Labor Office in South Korea.
“The above excessive payments to the beneficiaries were mainly due to the lack of control measures in the processing of claims,” the COA said.
It added: “The noted deficiencies could have been avoided had there been an available master list or database of beneficiaries with data of prior availments that can be accessed by the offices concerned and/or other control measures that could prevent such occurrence.”
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| https://newsinfo.inquirer.net/1474846/coa-to-owwa-why-purchase-napkins-from-construction-firm-not-drug-stores |
The Commission on Audit (COA) has asked an Overseas Workers Welfare Administration (OWWA) deputy administrator to explain why sanitary napkins were purchased from a construction and trading company and not drug stores near the Central Office.
COA mentioned during its audit report of OWWA for 2020 that the regularity of the expenditures made by a certain deputy administrator worth P1.269 million is doubtful as the items were neither procured from reputable shops nor were they properly itemized.
Part of the P1.269 million expenditures are hygiene kits, sanitary napkins, and thermal scanners worth P969,920, which were purchased from MRCJP Construction and Trading. COA said that the company’s establishment or office cannot be found in the address stated in the Collection Receipt (CR) provided.
COA stressed that a major drug store just sits near the vicinity of OWWA’s Central Office in Pasay City.
“It is unlikely that these items were bought from a store which deals with construction supplies or hardware, considering that the Mercury Drugstore is just around the vicinity of the OWWA,” the Commission said.
But aside from that, COA hinted at overpriced and too vague items: for example, the contents of the hygiene kits which was priced at P160 per kit was not indicated. Also, COA noted that the napkins purchased — at around P10, P20, and P30 per piece — “are too costly” because small sari-sari stores sell these items at P8 to P10 each.
“Out of the P2,011,441.90 covered by LR No. FM-OWWA 07-10.4, the propriety and regularity of the expenditures charged to the CA of a Deputy Administrator totaling ₱1,269,920.00 is doubtful due to the awarding of the procurement transactions not to reputable drugstores and supermarkets,” COA said.
“This is an indication that OWWA’s resources were not expended in accordance with rules and regulations and is contrary to Section 2, PD No. 1445,” it added.
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| https://www.gmanetwork.com/news/news/nation/799834/coa-flags-dbm-procurement-service-over-p95-46m-covid-19-supplies/story/ |
State auditors have flagged the Procurement Service of the Department of Budget and Management (PS-DBM) over its lack of a clear policy on handling inventories that led to P95.46 million worth of "slow-moving" COVID-19 supplies.
In its 2020 audit report, the Commission on Audit (COA) said PS-DBM placed orders for 113.95 million pieces of surgical masks and 1.32 million pieces of face shields on April and May 2020, a period when prices were “so high” because of high demand.
The masks were purchased from various suppliers for P13.50 to P27.72 per piece, while the face shields were bought for P120 each.
PS-DBM’s market surveys for the procurement were based on a Department of Health (DOH) circular dated March 2020 that stated the suggested retail price (SRP) was P28 for face masks and P120 for face shields.
COA said it requested and received a copy of a September 2020 DOH memorandum indicating that the updated SRP per piece was P2 to P4 for face masks and P26 to P50 for face shields.
In contrast, PS-DBM’s selling price per piece was P14.04 for face masks and P124.80 for face shields.
“There is a wide gap between the PS-DBM selling prices and DOH SRPs. As a result, surgical face masks and face shields are now slow-moving items in the warehouses of the RDs,” COA said.
The DBM bought face masks and face shields but was selling them at too high a price which meant many of the items remained unsold at the end of the year. This was a los of P99.7 million to the government.State auditors also said many client agencies opted not to purchase from the PS-DBM due to its high selling price.
“If PS-DBM had delivered all of the items when the demand was high, these items could have been sold immediately at a selling price at par in the market in the total amount of P99.27 million,” COA said.
“It was only in September 2020 that DOH implemented the updated SRPs. From May 2020 to September 2020, the PS had the opportunity to sell items at par in the market, yet these items remained unsold at the end of the year,” it added.
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| https://news.abs-cbn.com/news/08/17/21/coa-flags-ppa-for-unnecessary-infinity-pool |
The Commission on Audit has flagged the construction of a P10.835-million infinity pool and additional room in the Ports Management Office-Northern Luzon of the Philippine Ports Authority in San Fernando City, La Union.
This as the PPA said Monday it has finished the renovation of its training facility in the city with "capacity-building initiatives to reduce cost" and with potential to earn revenue from rental fees.
In COA's 2020 audit report on the PPA, government auditors said that the construction of the infinity pool and additional room in the Training Center Compound of the PPA was “unnecessary” as it had caused the demolition of a newly built canopy and perimeter fence, resulting in “improper and wasteful” spending of public funds.
The auditors noted that the PPA is mandated to develop and operate a rationalized national port system in support of trade and national development.
“If the construction of the said structures was a prerequisite for at least the PMO-NL to realize the institutional vision, prudence and diligence would dictate that these expenditures and structures were unnecessary as these seem neither justifiable nor responsive to the exigencies of the service,” the auditors said.
The PPA management, as quoted in the audit report, justified to the auditors that the improvements were undertaken to increase customer influx that would result in higher non-traditional income.
“During the exit conference, management reiterated the need for such structures to avoid incurring higher costs of conducting Port Executive Conference and health and wellness programs, meetings, trainings and conference in expensive hotels. It also restated the possible increase in income by raising the rental fees of its facilities,” the auditors said.
The auditors however insisted that the TCC, while generating a gross income of around P700,000 for 2018, also incurred around P750,000 in electricity costs alone.
The audit team stressed that it recognizes the purpose of having and maintaining a training center but that existing structures as well as other improvements done were deemed more than sufficient for the needs of the agency.
“Despite the adequacy of the facilities and amenities, management still pursued the construction of new structures without any supporting feasibility study, and seemingly, without regard for value-for-money,” the auditor said.
State auditors have flagged the Department of Education (DepEd) over deficiencies amounting to P8.136 billion in its Basic Education Learning Continuity Plan (BE-LCP) amid the COVID-19 pandemic.
The Commission on Audit noted alleged lapses in budget utilization, flawed or delayed procurement and delivery of self-learning modules, and the non-compliance with Republic Act 9184 or the Government Procurement Reform Act.
According to COA, the DepEd CO management explained that the processing of requesting sub-allotment release orders was prolonged due to delays of the program owners in requesting the downloading of funds.
“Besides, the process was also hampered because of the challenges brought up by the work arrangements adopted during this time of the pandemic,” it said.
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| https://newsinfo.inquirer.net/1475087/coa-doubts-if-winning-dict-bidder-can-legally-provide-laptops-as-it-is-a-construction-firm |
The Commission on Audit (COA) doubts that a general construction company will be able to legally supply the Department of Information and Communications Technology (DICT) with laptops and other computer gadgets.
The company, Lex-Mar General Merchandise and Contractor, is the winning bidder in the procurement of various ICT gadgets totaling P170.2 million.
The firm has no documents to show that it is engaged in the business of supplying information and communications technology gadgets, the COA pointed out in its Consolidated Management Letter addressed to DICT Secretary Gregorio Honasan II.
There is no information about this in Lex-Mar’s Certificate of Registration with the Bureau of Internal Revenue and its Permit to Operate, according to the COA letter.
Citing Lex-Mar’s financial statements, the COA letter to Honasan said the “primary purpose of the company is to engage in the business of general construction.”
“Hence, it is doubtful whether the herein supplier has the legal capacity to engage in this kind of business,” it added.
On top of this, the letter also pointed out that Lex-Mar was a sole proprietorship with current assets of around P44.57 million — way below the P170.2 million contract it signed with DICT.
Philippine National Police (PNP) chief Gen. Guillermo Eleazar believes that it might be better for the Commission on Audit (COA) to “revert” to old ways — when audit reports were not released to the media for reportage.During Wednesday’s Kapihan sa Manila Bay, Eleazar made the comment in light of the recent deluge of COA reports that have allegedly tainted the reputation of various government agencies, especially the beleaguered Department of Health (DOH).
This also came a day after COA itself clarified that they are not making any press releases of audit reports; rather, such documents are made available on their website in compliance with existing laws.
(Recently we have observed that it really comes out in media outlets, and well we can say that if it really comes out, even though the intention of the COA is very good, but if you write it down in a story — we cannot blame our peers in the media — but if it is written down it seems the agencies already committed a sin.)
(But still, we think it would be best if we no longer have it aired to the media, like the previous situation where the reports would go straight to us.)
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| https://www.philstar.com/headlines/2021/08/19/2121106/pnp-chief-takes-back-coa-remarks-orders-cops-comply-audit-findings |
The chief of the Philippine National Police took back his earlier remarks accusing the Commission on Audit of releasing audit reports to the media, and instead urged local police offices to cooperate with resident auditors.
"It was made clear to me that the COA does not issue press statements and instead, posts its audit reports on its website as part of its Constitutional mandate for transparency," Police Gen. Guillermo Eleazar, PNP chief, said in a statement sent to reporters on Thursday.
"In a forum I attended yesterday, August 18, I categorically suggested that the Commission on Audit should stop releasing its audit reports to the media and instead revert to the old ways when all observations on budget spending are internally directed to the government agencies concerned...I stand corrected," Eleazar added.
Eleazar said he "learned" that the COA actually sent its observations to the PNP offices and "[gave] them enough time to review and correct" any observations before a report is published.
This comes after President Rodrigo Duterte, whose statements are routinely backed by the PNP, instructed government offices not to ignore audit findings by the COA after the latter flagged a number of government departments over unspent funds and other "deficiencies."
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