Town misused senator’s PDAF

CEBU, Philippines - The Commission on Audit has disclosed that the Priority Development Assistance Fund of Sen. Francis Pangilinan amounting to P1.5 million was not utilized for its intended purpose when it was released to a non-government organization in Pinamungajan town, Cebu.

The Municipality of Pinamungajan was a recipient of the P1.5-million fund as per Special Allotment Release Order No. G-10-07923 dated Nov. 24, 2010 as financial assistance for various livelihood/agricultural inputs, not limited to animal dispersal, in selected barangays.

To implement the project, a Memorandum of Agreement was entered into by the Local Government of Pinamungajan and the Lamac Multi-purpose Cooperative.

Paragraph 14 of the MOA states that the LGU of Pinamungajan shall evaluate the feasibility of the project proposal submitted by the cooperative. The LGU of Pinamungajan shall monitor the utilization of the funds and inspect project implementation, verify financial records and reports of the cooperative.

The P1.5-million fund was released to Lamac Multipurpose Cooperative on Aug. 24, 2012.

The submitted project proposal that will provide an agri-microfinance loan was evaluated by the municipal agriculturist and approved by the mayor. The proposal was to extend financial assistance to borrowers engaged in long gestation agri production businesses like those of cassava planters.

While waiting for the cassava to be harvested after 10 months, they will help the farmers diversify their production by intercropping it with short-term production like yellow corn or mongo.

Moreover, the cooperative will introduce to them the opportunity of availing livestock and poultry contract growing. Thus, the farmer can avail of a loan amounting to P25,000 for every one hectare planted with cassava and an initial six to 10 piglets amount to P2,000 per piglet. Aside from that, the farmers can also avail of cassava production with poultry-raising and vegetable growing.

Post-audit of the disbursement and liquidation of the funds submitted by the cooperative disclosed that the 51 recipient borrowers were not cassava planters.

COA, in its 2013 audit report, said that the loan availed of by the borrowers were regular multi-purpose loans ranging from P10,000 to P75,000 for various purposes. Confirmation of the loan accounts was made to selected borrowers to validate if they were able to meet the qualification as recipient of the loan.

“Our confirmation and interview with some of the recipients disclosed that the loan they applied for was a multi-purpose loan, not one of them were cassava planters,” COA said.

The general manager of the cooperative disclosed that the funds they have received from the LGU of Pinamungajan was utilized as additional capital for the micro-lending facilities of the cooperative.

The project proposal was reportedly not followed because from the time it was submitted and the release of the funds, the cassava plants were infested with pests and there was a recommendation to temporarily stop the cassava project, so the project was no longer feasible. 

But COA pointed out that the release of the funds to the NGO for micro-lending facilities was not in conformity with the intent of the financial assistance.

The funds intended for livelihood projects of the barangays was released to a cooperative which was using government funds as additional capital for their lending business, thus earning profit through the interest earned and to the disadvantage of the government, COA said.

It added that the funds should have been released directly to the barangay where the poor communities and disadvantaged sectors will be given livelihood programs to help uplift their status.

COA also disclosed that the same cooperative failed to liquidate the P1 million it received in 2008.

COA also asked for justification why the cooperative will not be required to return the money to the municipality to implement the project for its intended purpose.

It further required to immediately liquidate the previous financial assistance of P1 million.  (FREEMAN)