Gullas: Notice of disallowance for P29M projects not yet final

CEBU, Philippines - Nothing is final yet on the notice of disallowance issued by the Commission on Audit against the P29 million computerization and liquid fertilizer projects of Talisay City.

Former Cebu first district congressman and Talisay City mayor Eduardo Gullas, in a statement, said that the notice of disallowance is not final until the COA resolved the legal issues he and former mayor Socrates Fernandez have raised.

“The Notice of Final Demand dated August 5, 2015 by COA to the City of Talisay is not yet final, pending the Resolution of legal issues raised by Former Mayors Eduardo R. Gullas and Socrates Fernandez,” said Gullas. 

In a three-page notice signed by COA secretary Nilda Paras, the agency has ordered Gullas, Fernandez, and 13 department heads to return P29, 360, 762.70 used for the city’s computerization project and liquid fertilizer because of alleged irregularities.

In 2004, the city government implemented the P26.988 million computerization project for business licensing, real property assessment, personal information system, government payroll system, automated timekeeping system, project monitoring system, electrical and water permits application system, local civil registrar, installation of local area network and job orders.

But COA noted that the total appropriation for the program was only P2.4 million, leaving a balance of P24.588 million without legislative appropriations.

The P24.588 million balance was realigned to various appropriations through the executive orders of Fernandez for the development and purchase of software for various offices of the City Hall.

COA said “there were lapses on the part of the mayor,” adding that the present city council should now seek approval of the required appropriation ordinances covering the realignments, otherwise the already released amount would be deemed irregular disbursements.

State auditors also took notice of the purchase of close to P3 million worth of liquid fertilizers for allegedly being overpriced. COA found the transaction to be overpriced by P2.4 million or almost 400 percent of its actual cost. 

“COA contends that they had no authority to realign the savings of the City for its computerization project.  The City Attorney, however, certified that they had such authority,” Gullas said.

Gullas, who is also former congressman, said the purchases for the software system which were completely installed in the various departments of the City Hall were endorsed by the Bids and Awards Committee after a public bidding. He insisted there was no overpricing of the projects. 

“The issue in the COA‘s Notice of Disallowance is not overprice but that the former mayors had no authority to realign the savings of the city for the computerization of its office,” he added.

Gullas also said that the City Council has passed a resolution confirming and ratifying the realigning of the savings, which the validity of the Notice of Disallowance is on appeal before the Supreme Court.

“Notices of Disallowance are routinely issued by COA to Local Government Units as part of the latter’s mandate to oversee government expenditures,” Gullas said.

The notice issued by Paras was furnished to Talisay City Mayor Johnny de los Reyes in order for the persons liable to refund.

Aside from Gullas, who served as mayor of Talisay City from 2001 to 2004, COA also held former city administrator Aurora Econg, general services officer Joan Vebar, city engineer Audie Bacasmas, human resources officer Emely Cabrera, city accountant Viluzminda Villarante and city treasurer Emma Macuto liable for the alleged irregularities.

Socrates succeeded Gullas in 2004 as mayor and retained all the department heads in his administration.

Also made liable to refund the amount were former city registrar Gemma Ladion, city building administrator Ariel Araw-araw, assistant city engineer Gamaliel Vicente, city agriculturist Rene Galado, Melanie Lavador, and Rey Lumapas.

The state auditors also held equipment supplier Powerdev Corporation or Marlon Alfonso (being the payee) and Gracias Industries Supplier liable. Gracias Industries supplied the city the liquid fertilizer.— /FPL (FREEMAN)