COA finds Argao payment of choreographer irregular

CEBU, Philippines - The Commission on Audit (COA) has found some deficiencies and irregularities in the disbursement of payment of the Municipality of Argao to Victor Lim Cuenco as choreographer and adviser of the “La Torta” Festival.

The Annual Audit Report of 2012 disclosed that no official receipt was issued by the claimant for the receipt of payment.

Report said that the payment made to Cuenco in the total amount of P364,210.53 included not only for the payment of services rendered but also for  the supply of costumes amounting to P101,000.00 which should have been procured through the appropriate and applicable mode of procurement in accordance with the implementing rules and regulations  of R.A. 9184

Cuenco was also allowed to claim advance payment amounting to P55,000.00 which was taken from the cash advance of the Special Disbursing Officer for Sinulog Festival Activities.

COA said that it is in violation of the Memorandum of Agreement between Cuenco and the Municipality of Argao, which stated that the amount stipulated therein shall be payable in full after the culmination of the festival, and also a violation of RA 7160.

Section 338 of the Local Government Code of 1991 or RA 7160 states that “No money shall be paid on account of any contract under which no services have been rendered or goods delivered.”

Sections 4(1) and 4(6) of PD 1445 states that ‘No money shall be paid out of any public treasury or depository except in pursuance of an appropriation law or other specific statutory authority” and that “Claims against government funds shall be supported with complete documentation.”

COA recommended strict compliance with the provisions of Section 4 of PD 1445 and Section 338 of RA 7160.

All disbursements should be in pursuance of an appropriation law or other specific statutory authority, properly and completely supported with all the necessary supporting documents.

COA also recommended that the municipality should stop the practice of making advance payment on account of any contract under which no services have been rendered or goods delivered. (FREEMAN)