COA asks Punta brgy leaders to refund P700,000

CEBU, Philippines - The Commission on Audit (COA) recommends sanction for the officials of barangay Punta Princesa, Cebu City who were responsible for the implementation of a project that was found irregular.

COA refers to the rehabilitation and improvement of the Aqua Punta Water Refilling Station of the barangay hall which cost the barangay P700,995.

The refilling station used to be located at the ground floor of the barangay hall but it has already vacated the area.

COA wants the officials responsible for the implementation of the project to be held liable and refund the amount of P234,620 representing the cost of the rehabilitation and its equipment.

COA said that financing the rehabilitation and improvement of the project that is privately operated is in violation of the Local Government Code which states that “no public money shall be appropriated or applied for religious or private purpose.”

Further, COA said that both the barangay as the lessor and the lessee in the name of Ernesto Piodos violated the contract they entered into.

“Under the terms and conditions of the lease agreement specifically section 3, stipulates that ‘the lessee shall provide all the necessary improvement including repairs, commission, operation and installation of the reverse osmosis equipment at the water refilling station’,” COA said.

It was also agreed under Section 6 of the same agreement that the lessee shall reimburse all the costs incurred in the rehabilitation.

But COA said that the operator of the refilling station failed to reimburse the cost of the rehabilitation.

The operator also did not pay the barangay for the electric consumption.

COA said there is also a failure on the part of the barangay when they did not issue billing statements of the electric consumption.

“It is recommended that the concerned barangay officials should be required to refund the amount of P234,620…it is further recommended that appropriate sanctions shall be imposed to the concerned barangay officials,” COA said in its annual audit report for 2009.

COA also reminded the barangay to refrain from using the Sangguniang Kabataan fund for purposes not determined by the SK.

COA said that the SK Funds amounting to P322,535.85 was spent by the barangay officials for the procurement of educational supplies and payment of snacks without the authority of the SK.

SK gets a 10 percent share from the general fund of the barangays.

Once it is appropriated, COA said that the barangay council no longer has the discretion to use it.

“The appropriation and administration of the said 10 percent share in the barangay’s general fund is left to the sole discretion of the Sangguniang Kabataan concerned. The SK shall spend the fund for its programs and projects pursuant to its approved plan and budget,” COA said.    - (THE FREEMAN)