COA: Tuburan losing from waterworks projects

CEBU, Philippines - The waterworks venture in Tuburan town has incurred losses instead of earnings in 2013, the Commission on Audit stated in its report.

State auditor Carlota Saromines said the Waterworks of Tuburan incurred a “net loss” in 2013, “thus the objective of the economic enterprise was not attained.”

 Based on a review of Tuburan’s operational expenses, COA found out that the town spent P3.2 million for the project, which is higher by 243.825 percent than the project’s P1.3 million income.

 “Although the municipal government was engaging in economic enterprises in order to cater to the needs of its constituents which is more service oriented, it should be operated as a self-sustaining and income generating venture to augment the resources of the government,” the report reads.

 COA said information gathered from the municipal treasurer revealed that there were “weak” spots in the implementation of the project, which include, among others, the non-conduct of actual meter reading on the water consumption, poor maintenance of water meter and absence of monitoring of collection of water fees that “resulted in substantial balance of accounts receivables from delinquent consumers.

As of December 31, 2013, the balance has reached P1.4 million and ballooned to P2 million in February 2014.

 As of February 2014, the town has reportedly sent demand letters to delinquent consumers from 13 barangays.

 “We recommend that management should design/adopt measures and strategies to remedy the weak internal control on the management of the operation of waterworks…and review and revisit the Plans and Targets in the operations of the economic enterprise in order to address the areas where the municipal government can generate additional income,” COA said.

 COA also enjoined the municipal treasurer to improve the collection system and conduct extensive collection of accounts receivables.

 “Of the 29 audit recommendations embodied in the 2012 and prior years’ annual audit report, six were fully implemented, 11 were partially implemented and 12 were not implemented,” COA said.  (FREEMAN)