City has P101M in unsettled advances

CEBU, Philippines - The city government has failed to settle P101.1 million in unliquidated cash advances that were granted before December 31 last year, as the set deadline by the Commission on Audit expired on January 31.

The agency earlier issued COA Circular No. 2012-004 dated Nov. 28, 2012, demanding the city immediately liquidated and settle the said balances on or before Jan. 31, 2013.

The P101.1 million also represents the 77.57 percent of the total unliquidated cash advances of P130.3 million as of May 31, 2013.

The various accounts of unliquidated cash advances totaling to P101.1 million include the cash advances of 148 officers and employees amounting to P13.4 million from the General Fund of P13.1 million and P71,290 from the Special Education Fund.

The unliquidated accounts from 103 cash disbursing officers amounting to P44.5 million can be broken down to P42.5 million from GF, P1.2 million from SEF and P765, 807 from the trust fund.

The dues from 123 officers and employees amounting to P43.1 million can be broken down to P38 million from GF, P2.7 million from SEF and P2.4 million from the general fund.

COA said that the monthly reports of collections, checks issued and disbursements and its supporting documents were not submitted to their division, contrary to the issuance of COA circular which gave them doubt on the reliability of the affected account balances.

“The non-submission of the mentioned reports and supporting documents cast doubt on the reality of the affected balances. It delayed the audit thereon or thereby any deficiency that may be noted cannot be immediately acted upon,” COA said.

Article 217 of the Revised Penal Code states that the failure of a public officer to have duly forthcoming any public funds or property with which he is  chargeable, upon demand by any duly authorized officer, shall be prima facie evidence that he has put such missing funds to property use. 

Also, last June 19, COA reminded the city to submit the financial statements/reports, schedules, supporting documents and other data and administrative reports not later than June 24.

However, the trial balance and financial statements as of May 31 were submitted only on August 28.

COA is asking Mayor Michael Rama to instruct all the accountable officers to immediately settle all their outstanding cash advances immediately and require the city accounting office to submit the reports and supporting documents.

COA is also asking Rama to file a malversation charge against the employees and officers under Art. 217 and failure to liquidate cash advance under Art. 218 as provided for in COA Circular No. 2012-004.

However, Rama said he won’t file charges against those who have unliquidated cash advances.

“Di lagi ko mosugot nga kami mangiha anang mga tawhanan nga naay unliquidated. Please do not let me collect labi na kadtong nangamatay na tapos di man intawon na sa akong term, sa ako man ng mga predecessors (former mayor and now congressman Tomas Osmeña, Alvin Garcia, et.al) it is not right,” Rama said.

“Wa man ko nagpa-elect para mag-collect ug wa man ko nagpamayor para mokiha sa mga mayor kaniadto,” he added.

Rama said he has lot of responsibilities and collecting debts is not his job saying “the COA should settle the unliquidated cash advances and they may bring it to other key agencies like Office of the Ombudsman, Department of Justice and Office of the president”.

However, Rama has promised that he will prosecute those who have unliquidated cash advances when his term ends.

“I will make sure in my term, whoever will have unliquidated before my term will end, if there will be a need to prosecute them, I will prosecute them,” Rama said.

If the city government will not submit necessary documents and reports, COA will order to withhold the salaries of the officials and employees pursuant to Section 122 of Presidential Decree 1445.  (FREEMAN)