CEBU, Philippines - After uncovering the questionable mode of the procurement process of food provided to teachers and support staff who served during the May 2010 elections, another irregularity in the Cebu City government was discovered by the Commission on Audit.
This time the transaction involved the illegal release of a cash advance in the amount of P5.101 million for the Christmas street lights last December.
The City Treasurer’s Office encashed and withdrew the money even without the city accountant’s advice.
A source showed to The FREEMAN that the CTO encashed from the Land Bank of the Philippines check No. 0000749894 in the amount of P5.101 million.
City treasurer Ofelia Oliva, who was in charge of the street-lights and Christmas decoration, sought the City Council for a P10-million budget last year but they slashed it to P6 million.
“Wala man gyud ni miagi sa accounting. Midiritso ra gyud ni sila (city treasurer) sa Land Bank unya ilang gipasaligan ang bangko nga mosunod lang daw ang accountant’s advice pero wala,” said the source who refused to be identified, saying that the matter has already reached COA.
The source said that if the correct procedure is to be followed, the accounting office shall check first all the documents needed before the issuance of the accountant’s advice.
If all is in order, the journal entry voucher will be prepared and signed, the disbursement certifying the completeness of documents. If there are no deficiencies in the documents submitted, the accounting department can release the accountant’s advice for the release of the funds.
But what happened here, according to the source, was that it was made to appear that it had passed through accounting after the upper right side of the check was marked with a stamp “with advice.”
What is more surprising, according to the source, was that the amount submitted to COA’s office for pre-audit was dated December 2, 2010 but the check was already encashed and withdrawn on December 1, 2010.
“Nag-una ang withdrawal sa kwarta bisan dili kompleto ilang dokumento,” the source said. The check bears the name of a certain Julieta Marquita, an employee of the CTO, and signed by Oliva and city administrator Jose Marie Poblete.
Oliva was not available for comment yesterday.
The source also showed the two-page report from the government auditors that cash advances are subject to pre-audit except those for payroll, intelligence funds, petty cash funds and those given for local travel expenses of officers and employees.
“Use of cash advance is an exception and only on specified instances such as cash advance for payroll and travel. Procurement of goods and services through cash advance is not allowed,” the report read.
The transfer of cash advance from Marquita to different heads of office is also a violation of Section 75 of Presidential Decree 1445, which states that “transfer of government funds from one officer to another shall, except as allowed by law or regulation, be made only upon prior direction or authorization, of the Commission or its representative.”
As government auditors ordered the suspension of the payment to Red Carpet Catering services amounting to P4 million for food given to teachers and support staff, the COA has also found out that the transaction of purchasing lights for the city streets did not go through a public bidding as mandated in the Philippine Government Procurement Law.
The state auditors said the matter of decorating the city streets for the Christmas season is a yearly undertaking, and the supplies and materials could have been included in the annual procurement planning.
City Councilor Joey Daluz said he is not aware how the CTO implemented the project.
“Dako ra kaayo ‘nang P5 million nga i-cash advance,” Daluz added. — /BRP (FREEMAN)