INTERIM General Manager Fermin Jarales of the Cagayan de Oro Water District (COWD) addressed concerns raised by the Commission on Audit (COA) over a P9.9 million disbursement, assuring compliance with required approvals to clarify the “potential irregularity” flagged by COA.
The COA’s Audit Observation Memorandum (AOM), issued on October 28 by Supervising Auditor Florita Kionisala, questioned the legality of disbursements totaling P9,960,559.01.
The memo cited a possible lack of adherence to Section 4(5) of Presidential Decree No. 1445, which mandates proper official approval for all government disbursements.
Jarales acknowledged that a Local Water Utilities Administration (LWUA) Board Resolution, No. 34, had not yet been submitted, noting that it would arrive from Manila shortly.
The resolution grants full LWUA intervention in COWD operations for six months.
“Muabot na sya karon (Board Resolution No. 34) via plane,” Jarales told Gold Star Daily.
He also clarified that the Bureau of Treasury recently approved his fidelity bond, enabling him to legally authorize COWD’s bank transactions.
Jarales confirmed that his signature authority was recognized by both the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines for COWD accounts.
Addressing the COA’s findings, Jarales stated that the flagged transactions primarily pertain to payroll disbursements, underscoring that all wages for regular and casual employees are up-to-date, with minor delays for job order employees due to processing requirements.
“Mga payroll man sab kini. Makita man ninyo. Wala na delatar ang sweldo sa mga regular ug casual. Siguro sa (mga job order employees). Pero normal man na nga naa sila’y i-submit nga mga rekisitos,” he said, assuring that the COWD’s financial operations are proceeding without delay or irregularity.
