In Toledo City COA finds P10M unliquidated cash advances

CEBU, Philippines - The Commission on Audit uncovered P10 million unliquidated cash advances by some Toledo City officials and employees.

State auditors also noted the city officials’ failure to strictly observe the provisions of the COA Circular No. 97-002 in the granting and liquidation of cash advances resulting to the accumulation of cash advances.

Mayor Aurelio Espinosa has the biggest amount of unliquidated cash advance amounting to P500,000 while his daughter Vice Mayor Arlene Zambo has P300,000. Former city administrator Filomeno Plaza has P100,000.

Aside from them, 339 other city officials and employees have also incurred unliquidated cash advances.

Under the COA circular, no additional cash advances shall be allowed to any official or employee unless the previous cash advance has been liquidated. But Toledo City officials have reportedly disregarded the circular.

“The laxity in the granting, utilization and liquidation of cash advances has already been repeatedly included in the previous year’s annual audit report yet there are still material amounts of unliquidated cash advances and practices in violation of COA Circular No. 97-002,” the state auditors reported.

Zambo however told The Freeman that 70 percent of the unliquidated cash advances have already been settled. She said the original unliquidated amount of P10 million last December 31, 2010, as reflected in the 2010 COA report is now only P3 million.

Zambo said the city government, during her term, has been monitoring and demanding for the liquidation of advances. In fact, Zambo said they were able to liquidate as of this year, the P7 million in cash advances.

“During my term as mayor, I issued an executive order nga dili na maka-cash advance ang aduna’y unliquidated and I also issue a memorandum to all employees that they cannot cash advance if they cannot liquidate their cash advances,” Zambo said.

Zambo admitted having unliquidated cash advances but clarified that the amount was mostly used in the cultural events of the Department of Education. – (FREEMAN)