Finance body to look into Moreno checks

By LITO RULONA
and NITZ ARANCON
Correspondents

THE city council on Monday tasked its finance committee to look into city hall’s issuance of 17 checks. Eight of the checks, amounting to P79 million, had Mayor Oscar Moreno as the payee.

This came after Councilor Leon Gan demanded for an explanation, citing a Commission on Audit (COA) report.

Gan told the city council on Monday that the COA regional office sent a June 14, 2016 letter to Moreno that pointed out that 17 checks were missing, and not recorded in the city government’s book of accounts.

“Kini nagpasabot ba nga mipagawas ang syudad og kuarta nga walay igo nga supporting documents. Kini kinahanglan nga tukion sa insakto nga komitiba sa city council,” Gan said.

But Councilor Zaldy Ocon said Gan’s report was based on inaccurate and outdated information, claiming that city hall was already able to liquidate and explain to the COA what happened.

Gan showed a copy of the letter, signed by COA regional director Celso Vocal, that stressed that because of the missing checks, the regularity of these disbursements could not be ascertained.

The COA also stated that city hall’s cash in bank-local currency, current account is overstated, and others are understated contrary to the provisions in Local Government Code, and Audit Code.

Gan said Mayor Moreno was the payee in at least eight checks amounting to P79,197,140.59.

The dates, numbers of the missing checks with Moreno as the payee, and the corresponding amounts:

• Jan. 6, 2015, Philippine Postal Service Bank Inc. (PPSBI) check no. 437880, P13 million;
• Jan. 7, 2015, PPSBI check no. 437881, P11 million;
• Jan. 8, 2015, Philippine Veterans Bank (PVB) check no. 276448, P12.5 million;
• Jan. 9, 2015, PVB check no. 276449, P12.5 million;
• Oct. 7, 2015, Land Bank of the Philippines-Velez (LBP) check no. 1235388, P5 million;
• Oct. 27, 2015, LBP check no. 1246358, P5 million;
• Nov. 5, 2015, LBP check no. 1246497, P10 million;
• Nov. 11, 2015, Development Bank of the Philippines (DBP) check no. 47409977, P10 million.

“Dili kini makita kung asa kini mipa-ingon. Ang nakapakugang nako kay ang gibayaran mao man ang mayor as payee. Kinahanglan masuta kini,” Gan said.

City hall spokesperson Maricel Rivera said the checks showing Moreno as the payee was a non-issue.

“Why not? That’s allowed by law (he) being the local chief executive. There is nothing wrong with it as long as the funds are liquidated,” said Rivera, adding that the local finance committeee has submitted all the documentary requirements to the COA.

Rivera said city hall spent the funds for various projects implemented in the city.

In the June letter, Vocal asked the city accountant and city treasurer to account for the funds by submitting the missing disbursement vouchers, and require the immediate liquidation of the amount.

“Enforce sanctions or legal actions against persons determined liable over the missing vouchers involving the P72 million if warranted,” part of Vocal’s letter reads.

Councilor Ocon said Gan based his special report on outdated information, claiming that city hall was already able to account for the funds.

“Bahaw, na-liquidate na,” said Ocon.

He said a notice of suspension was issued by the COA in 2015, and city accountant Beda Joy Elot wrote back to the Commission on Feb. 29, 2016, and explained.

“Ang problima ni Councilor Gan kay wala siya magbasa-basa sa wala pa siya mo-render sa iyang report sa city council,” Ocon said.

On May 19, 2015, COA sent city hall a notice of suspension applicable to projects that had no supporting documents in violation of COA Circular 2012-005, and Section 7.2 of COA Circular 2009-006.

Reads part of the COA notice: “Please settle the abode suspension through compliance with the requirements indicated which we will evaluate. Items suspended  in audit which are not settled with in ninety ( 90 ) days from receipt hereof shall become a disallowance pursuant to Section 82 of PD no. 1445.”

On Feb. 29, 2016, Elot sent the COA a “management response to the notice of suspension.”

Elot’s response acknowledged that the checks cited by the COA post-audit team were unrecorded. “The audit team’s finding are well taken and the management commits to implement corresponding recommendations.”

She also acknowledged lapses in the submission of documents. “Nevertheless, we wish to stress that while there were some lapses on our part, those were not made with malice… neither with the purpose or intent to defraud,” reads a portion of the response.

Elot said the lapses were “due to the voluminous daily transactions in the City Treasurer’s Office” that resulted in “some setbacks in the transmittal of documents which affected the timeliness of recording by the Accounting.”

She added: “To date, majority of the transactions concerned were already recorded in our books. Also, necessary adjustments were effected by the City Accounting and Journal Entry Vouchers (JEV) and their  corresponding  vouchers and supporting documents are submitted herewith.”

Elot asked the COA to lift the May 2015 notice of suspension.