COA flags DND for P19.8 million unliquidated funds

MANILA, Philippines — The Commission on Audit (COA) has flagged the Department of National Defense (DND) for P19.812 million of unreturned and unliquidated funds supposedly used for various projects, including assistance for the victims of Super Typhoon Yolanda, which hit the Visayas in 2013.

Based on the COA’s annual audit report, the DND, as of Dec. 31, 2018, received a total of P925.894 million from various national government agencies, 8.71 percent or P80.684 million of which was transferred to its sub-agency, the Armed Forces of the Philippines (AFP), for the implementation of several projects. 

The audit body said of the total amount, only 16.37 percent or P151.583 million has been liquidated, leaving a balance of P774.311 million.

The COA said that while P764.168 million of the unliquidated amount was only received during the year or a period of four to nine months, the remaining 2.56 percent or P19.812 million was received and remains unutilized and unreturned for three to 11 years.

The audit body said this was in violation of Sections 4.6 and 4.9 of COA Circular No. 94-013 dated Dec. 13, 1994, which respectively mandate the implementing agency to regularly submit a report on the disbursement of the received funds and to return to the source agency any unused balance upon completion of the project.

A breakdown provided in the report showed that P6.912 million of the unliquidated fund was received by the DND from the Office of the President in 2007, 2011, 2012, 2013 and 2015, including P2.14 million for financial assistance to government employees affected by Typhoon Yolanda and the magnitude 7.2 earthquake in Bohol; and P2.686 million as funding requirement for the conduct of Defense Dialogue on Cooperation in the West Philippine Sea.

The others were P1.121 million for the Defense Situation Monitoring System projects; P560,000 for financial assistance to government employees affected by Typhoon Pablo in 2012; P362,268 as funding for the implementation of Defense Video Teleconferencing Upgrade Projects; P42,586 for construction of the apartment complex for the AFP in Camp Lapu-Lapu Cebu City.

The COA said the apartment complex was transferred to AFP in 2007 or 11 years ago but the excess fund remained unrefunded to DND and consequently affecting the balance of the agency’s liability to OP.

Meanwhile, the COA said P12.9 million of the unliquidated fund was received from the Department of Environment and Natural Resources (DENR) in 2015 for the establishment of a bamboo plantation project at Fort Magsaysay Military Reservation Area in Nueva Ecija. The COA said the fund remained unused to date.

The COA said it recommended that the DND require the AFP to “immediately refund the excess fund transfer” for the construction of the apartment complex and to revert to  the Bureau of Treasury the unused fund from OP and DENR and furnish the source agencies a copy of documents for proper recording.