CEBU, Philippines - The Commission on Audit has asked the Lapu-Lapu City government to refund the P8,705,916.09 unutilized financial assistance granted by the Department of Tourism (DOT) for the 12th ASEAN Summit in 2007.
In its 2012 report, COA found out that Lapu-Lapu City government failed to refund the amount despite demands and audit observation memorandums that it was a violation of the Memorandum of Agreement and COA Circular.
Lapu-Lapu City was one of the hosts of the summit, which was held from January 10 to 14, 2007.
The MOA provides that Lapu-Lapu City shall return to DOT any unused balance upon comple tion of the projects and that the DOT shall issue the corresponding official receipt.
On December 6, 2006, CO disclosed, Lapu-Lapu City received from DOT at least P15,680,000 specifically for beautification, lighting and other tourism-related projects in the city in relation to the summit.
The terms and conditions of the DOT assistance were contained in the MOA signed by then Mayor Arturo O. Radaza and Patricia Aurora B. Roa, then DOT regional director, on December 5, 2006.
Records disclosed that Lapu-Lapu City incurred various expenses totaling P6,974,083.91 for beautification, lighting and tourism-related projects, leaving an unused fund of P8,705,916.09.
The city, in its communications to DOT, had requested for the realignment of the unused funds for future projects.
But then Tourism Secretary Alberto Lim, in his November 23, 2010 rely, suggested that Lapu-Lapu City should first refund the unused amount, after which a new proposal may be submitted on the unexpended balance.
COA noted that the un-refunded amount only deprives the national government of the fund that should have been used for other priority projects.
The COA further disclosed that in 2008, a year after the completion of the project, Lapu-Lapu City incurred additional expenditures worth P2,794,985.30 for the beautification project.
But the amount was charged to the fund granted by DOT, which the COA said was irregular.
“The expenditures are considered irregular and contrary to the provisions of the MOA which provides that in no case shall the Inter-Agency Fund transferred be utilized for other purpose except for the implementation of the Projects,†COA said.
During a conference on May 30, 2012, Lapu-Lapu City government promised to coordinate with DOT but had reiterated its request to use the unexpended balance for beautification projects.
But COA recommended that the city should make a follow-up on its request to use the unexpended balance, otherwise the amount be immediately refunded pursuant to the provisions of COA Circular 94-013 and the MOA. —/LPM (FREEMAN)