COA recommendation: ‘Move Capitol funds to approved banks’

CEBU, Philippines- The Commission on Audit has told the Cebu Provincial Government to transfer the almost P500 million in its time deposits and special savings deposits accounts in private banks to its existing current account, as stipulated in a Provincial Board resolution.

In its audit of the Capitol’s 2014 financial operations, COA notice that the province has a total of P9.5 million time deposits in United Coconut Planters Bank “which is not in conformity with the Cebu Provincial Board Resolution No. 431.”

COA also noted that the province made short-term savings deposits (renewable every 60 to 90 days) in the Philippine Veterans Bank (PVB) amounting to P129.6 million and in the Philippine Postal Savings Bank totaling P170.51 million “without securing prior approval from (the) Department of Finance (DOF), as required under DOF Order No. 27-05 and Circular Letter from the Bangko Sentral ng Pilipinas.”

DOF Order No. 27-05 and BSP Circular Letter dated March 14, 2006 state that local government units, government-owned and controlled corporations, government agencies and others are required to secure a DOF approval if they deposit with private banks other than Land Bank of the Philippines and Development Bank of the Philippines.

The Capitol, through, relied on PB Resolution No. 431 approved on December 20, 1979 which authorized the governor, the provincial treasurer, and the provincial auditor to open accounts in LBP, DBP and PVB Cebu branches.

COA, on the other hand, said the Capitol’s time deposits are with UCPB, which is “not among those banks” enumerated by the resolution.

Also, the P129 million and the P170 million deposited in PPSB and PVB, respectively, did not have a DOF approval.   (FREEMAN)