State auditor Ma. Elsa Eguia said she already submitted her recommendations to the COA-legal division for further evaluation and to determine what violation Fernandez had committed.
Eguia's audit observation memorandum showed that the mayor, through executive orders, allegedly realigned at least P19-million of funds, disbursed on October 31 last year, for the development and purchase of software for various offices of the City Hall.
Another disbursement amounting to over P7.7-million was made on December last year for more purchases of information technology software, resulting to total disbursements of over P26-million.
Of this amount, the total appropriation for these projects was only P20.44-million but only P2.4-million was included in the 2004 annual budget under the Annual Investment Plan. The COA found out that the mayor issued executive orders to realign some funds and cover the P18.04-million deficit for the projects.
Eguia noted that the practice did not conform to the provisions of the local government code that states, "Changes in the Annual Budget may be done through supplemental budgets."
The funding of the project could not be charged either to the budget of the Initiatives in Support of Cooperative Development because "it is not within the area of cooperative development," Eguia said in her COA report.
Eguia said, "There were lapses on the part of the mayor," adding that the city council should now seek the city council's approval of the required appropriation ordinances covering the realignments otherwise the already released amount would be deemed irregular disbursements.
In a separate interview, Fernandez said the issuance of executive orders was done through "principle by reference" since other local governments practice the same. "The computerization program did not start from me but in 2003 during the time of then mayor Eduardo Gullas. Ako igo ra man ko mibayad," he said. - Garry B. Lao