Where is the P862m?

By NITZ ARANCON, Correspondent

NEARLY P862 million in city hall funds, presumably spent from 2006 to 2013, have remained unaccounted for to this day, city accountant Beda Joy Elot told the city council on Monday.

Elot also revealed that city hall’s “negative cash balances” as of June 30, 2013 amounted to P13,503,306.92.

Elot’s revelations came as she and two other city hall financial managers––city budget officer Percy Salazar and city treasurer Glenn Bañez––faced the city council on Monday to answer questions on the local government’s finances.

They were sent to the city council by Mayor Oscar Moreno after the legislature sent him a resolution that sought an official inquiry into the status of city hall’s finances. It was the city council that requested Elot, Salazar, and Bañez to come.

Elot said the Commission on Audit (COA) could not ascertain how P861,794,040.52 in public funds were used from 2006 to June 2013, or exactly what happened to the money due to the absence of bank reconciliation and adequate subsidiary records.

She also told the city council that the financial records that were available when Mayor Oscar Moreno assumed the city’s top post in mid-2013 were “inconsistent and confusing.”

In an interview yesterday, Elot said she was doing her best to reconcile city hall’s financial records from 2006 to 2013.

“Amo nang gihinay-hinayan pageconcile karon aron among makita asa man kanang mga
kuwartaha,” she told the Gold Star Daily.

According to Elot, city hall’s “negative cash balances” as of June 30, 2013 include P1,548,396.92 from the Philippine National Bank, P1,957,092.18 from the Philippine Consolidated and Industrial Bank, and P9,997,917.31 from the Development Bank of the Philippine.

“Ambot, gi-unsa kaha na nila oy? Nganong nag-negative man ang ilang cash balances sa mga bangko? Bo-ot pasabot nga nag-sigi sila ug withdraw, wala ilista sa libro,” she said during the interview.

Elot said the poor state of city hall’s financial records as of mid-2013 was a result of the violation of the Oct. 2, 1996 COA Circular no. 96-011 that requires local government accountants to prepare the monthly bank reconciliation statements within 10 days from receipt of bank statements.

Councilor Ramon Tabor said the appearance of Elot, Salazar and Bañez at the city council on Monday “was a good start” but he added there was a need for more clarification.

The three city hall finance managers faced councilors, and answered questions raised about the status of city hall’s finances.

“At least now, they have come, and they brought the truth with them,” said Councilor Roger Abaday.
Councilor Alexander Dacer said he was unsatisfied with the answers, adding that the three city hall executives failed to shed light on the way the Moreno administration has been handling the local government’s finances.

“The inquiry was to gather facts, and [so we can listen to] their explanation. But it doesn’t mean [that they have already] answered the questions… [pertaining to] the financial statements,” Dacer said.

Councilor Teodulfo Lao Jr. said the three officials were “impressive” in anwering questions.

“They explained it well. And what were not clear in the minds of the city council majority members and their questions were intelligently answered,” he said.