COA cites PDEA for improved drug storage facility

MANILA, Philippines — The Commission on Audit (COA) has commended the Philippine Drug Enforcement Agency (PDEA) for improving the safety and security in its facility where billions of pesos worth of confiscated illegal drugs are examined and stored.

In its 2018 audit report on the PDEA, the COA noted the recommendations of the audit team in 2017 were fully implemented by the agency.

In its 2017 audit report, COA had flagged the PDEA concerning the “handling, safekeeping and movement” of seized dangerous drugs valued at P6.795 billion as of yearend.

The audit body noted the laboratory and the adjacent storage room at PDEA headquarters in Quezon City lacked fire exhaust system and surveillance cameras and were secured only with wooden doors and manual locks.

The audit body said this made the facility susceptible to fire and other accidents as well as forced entry. 

COA added the audit team cannot form a conclusion on the effectiveness of the PDEA’s control and movement of the seized dangerous drugs “due to limited access to related documents as well as the storage facilities.”

In its 2018 audit report, the COA said closed-circuit television cameras were already installed in the new PDEA Laboratory Service Evidence Room as well as in the hallway leading to the storage area.

The COA said fire extinguishers, dehumidifiers and additional air-conditioning units were also installed in the laboratory and storage facility. 

It observed the storage area is now fortified with steel grills and concrete walls to prevent easy access to outsiders.

The audit team was also finally granted access to the restricted PDEA facilities such as the evidence room and storage room, where the team was able to check the stored dangerous drugs, COA said. 

COA added the audit team was also granted “eyes only” access to some confidential documents, but were understandably not furnished with copies as it might compromise PDEA’s anti-drug campaign.

COA said the audit team was also invited to the destruction of the confiscated dangerous drugs on July 27, 2018 in Trece Martires, Cavite.

Unliquidated advances, travel expenses

The PDEA, however, has some explaining to do as COA flagged the agency’s P74.2 million in unliquidated travel expenses and P31.3 million in unliquidated cash advances in 2018.

The audit body noted that of the P110.821-million total disbursements of PDEA for its 2018 local travel expenses, P22.451 million has incomplete supporting documents while P51.831 million was not even backed by any official receipts “to evidence the receipt of payments by the claimants.”

“The incomplete documentation of the transactions, aside from non-adherence to existing rules and regulations, rendered difficulty in ascertaining the propriety, necessity and validity of the transactions,” the report read.

Furthermore, COA said 21 accountable PDEA officials were granted cash advances last year totalling P31.3 million even if they still have unliquidatd cash advances from previous years.

The audit body reminded PDEA that under COA Circular No. 97-002 dated Feb. 10, 1997, “no additional cash advances shall be allowed to any official or employee unless the previous cash advance given to him is first settled or a proper accounting thereof is made.”

“The failure of the AOs (accountable officers) to settle/liquidate their cash advances within the reglementary period and the management’s practice of granting additional cash advance despite the non-liquidation of the previous cash advances resulted in the accumulation of unliquidated cash advances at year-end and not in pursuant to the pertinent sections of COA Circular No. 97-002,” the COA said.

As of end of 2018, COA said PDEA’s accumulated unliquidated cash advances stand at P43.154 million.

In its reply to the audit report, PDEA admitted there were instances where cash advances were granted to its officers even if there are still unliquidated cash advances “due to the special needs of the concerned regional office which cannot wait for the liquidation of the previous cash advances as time is of the essence.”

Nonetheless, the PDEA agreed to COA’s recommendation to send demand letters to all accountable officers “to immediately settle/liquidate their cash advances, considering that the purpose for which the cash advances were granted had already been served.”