Ombudsman's office also has P4.6 million in unliquidated cash

MANILA, Philippines - The Office of the Ombudsman currently investigating nine government agencies with over P2 billion in unaccounted funds also had more than P4.6 million of unliquidated cash advances last year.

The Commission on Audit (COA) said that they received a report that the Ombudsman’s unliquidated funds were already reduced to P416,420.55 as of April 30, 2010, a result of the anti-graft agency’s “relentless efforts and monitoring” of the unaccounted funds.

The remaining unliquidated funds include the P150,000 cash advances from the intelligence fund account of Danilo T. Manalo from 1996 to 1998 during the time of former Ombudsman Aniano Desierto.

Assistant Ombudsman Jose de Jesus Jr. said the Ombudsman is now preparing to file charges against the former employee of the anti-graft agency who is reportedly abroad.

He explained that Ombudsman Merceditas Gutierrez had ordered anti-graft officials to resolve the unliquidated cash advances.

De Jesus said Gutierrez is now determined to stop the practice of not liquidating cash advances that were made during the terms of her predecessors.

“That’s why she is now bent on looking into this. If this happens at the Office of the Ombudsman, how much more in other government agencies,” he told The STAR.

COA was also informed that officials of the anti-graft agency with unliquidated cash advances have been notified to settle in full their accounts and were directed to strictly adhere to the policy that no additional cash advances shall be granted unless previous ones are liquidated.

The Office of the Ombudsman had ordered all officials and employees to settle cash advances before the due date.

“The prior years’ unliquidated cash advances for intelligence fund in the amount of P130,088.42, which was carried in the books for the longest time was liquidated in CY 2009 through the diligent efforts of the officials and employees of the Finance and Management Services,” the COA report, quoting the anti-graft agency’s explanation, read.

COA bared that as of Dec. 31, 2009, the Office of the Ombudsman had outstanding cash advances totaling P4, 652,068.14 and of the amount, cash advances amounting to P184,825.55 pertained to the payroll fund account while P4,467,242.59 pertained to advances to officers and employees.

The audit said the central office in Quezon City had the lion’s share in unliquidated cash advances at 4,278, 663.50 followed by the Office of the Special Prosecutor (OSP) at 320,422.04.

The Deputy Ombudsman for Military and Other Law Enforcement Offices (MOLEO) office had outstanding cash advances at P40,130; the Mindanao office at P9, 228.60; and the Luzon-Region IV office at P3,624.

Gutierrez said the anti-graft body has initiated a probe against nine government agencies with unliquidated cash advances reaching P2.4 billion.

The agencies with unliquidated cash advances include the DepEd (P1.61 billion), Commission on Elections (P406.03 million), Philippine National Police (P313.27 million), Bureau of Jail Management and Penology (P18.21 million), Bureau of Immigration (P9.89 million), DND (P6.33 million), Bureau of Customs (P392,655.87), Philippine Ports Authority (P368,487.67), and the National Police Commission (P226,889.05).

Gutierrez said these agencies have violated COA Circular No. 97-002.

Through letter-reminders, she also asked the heads of the agencies to withhold the salaries of concerned officials and employees until their cash advances are liquidated.

COA Circular 97-002 states that failure of the accountable officer to liquidate his cash advance within the prescribed period shall constitute a valid cause for the withholding of his salary, and can be held criminally and administratively liable under the law.

The COA requires that cash advances such as salaries and wages, petty and field operating expenses, official travel, and intelligence and confidential funds must be liquidated. The failure of government employees to liquidate their cash advances will constitute a valid cause for the withholding of their salaries.

Those who fail to liquidate their advances may also be held criminally liable for violating the Government Auditing Code of the Philippines and the Revised Penal Code (Malversation of Public Funds). They may also be charged for administrative liabilities such as gross neglect of duty and dishonesty.

The DepEd said that the department is already verifying the officials and employees that could be held liable for the P1.6 billion unliquidated cash advances.

Lawyer Alberto Muyot, DepEd Undersecretary for Legal and Legislative Affairs and department spokesman, said that they have already been alerted by the Office of the Ombudsman on the huge unliquidated cash advances of the department. – With Rainier Allan Ronda, Alexis Romero, Cecille Suerte Felipe, Evelyn Macairan