Millions of payments without a contract, billions of unliquidated fund transfers, millions of undistributed cash assistance funds for the poor, unused funds and insufficient control measures were among the findings of the Commission on Audit (COA) in agencies like the Office of Civil Defense, Department of Interior and Local Government, Department of Social Welfare and Development, Commission on Higher Education, Department of Education and Department of Labor and Employment.
Office of Civil Defense (OCD)
COA also flagged OCD over their questionable payments unsupported by documents.
According to the COA report, the agency paid about P 94.551 million to different suppliers for the procurement of goods and services in relation to pandemic response without a contract.
In the same reports, state auditors reiterated that while the guidelines of the Government Procurement Policy Board (GPPB) Circular 01-2020, allows negotiated procurement under the pandemic, a contract is still required.
The GPPB Circular No. 01-2020 issued on April 6, 2020, set the guidelines for emergency procurement under Republic Act 11469 or the Bayanihan to Heal as One-Act.
“Based on above-cited provisions of (GPPB Circular 01-2020), there is no showing that a procuring entity may dispense with the execution of a valid contract as one of the basic requirements for all types of procurement and basis for payment of expenditures incurred during the state of calamity,” COA said in its findings.
Included on the transactions flagged for lacking in supporting documents were catering service for staff in quarantine facilities, accommodations and meals for volunteers and OCD personnel, sanitation services and storage charges.
There are also 57 contracts that were not compliant with the needed requirement such as purchase orders, work orders, and Procurement Contracts (PCs) that lack necessary documents.
Transactions with a faulty contract pertaining to supply and delivery of medical supplies for front liners and patients, catering services for personnel of testing facilities, provision of meals for OCD employees, accommodation and provision of shuttle services for medical front liners and police and OCD personnel, procurement of hospital beds, X-ray machines and other medical equipment and supplies, janitorial services for quarantine facilities and procurement of hygiene kits were also reported.
Department of Interior and Local Government (DILG)
COA flagged DILG for P 3.63 billion ‘unliquidated fund transfers’ to several government offices, local governments, and Non-government Organizations (NGOs).
In reply to COA’s findings, DILG clarified that the P 3.63 billion unliquidated fund transfers were “already liquidated as of June 30, 2021, and more liquidation reports from implementing agencies are being submitted to COA as they arrive.”
“We wish to emphasize that the COA has no findings that these funds were misused in any way and that the findings merely relate to the non-submission of liquidation reports or incomplete documentation,” said DILG in a statement.
Department of Social Welfare and Development (DSWD)
COA called out DSWD for the unused P 780.71 million funds set for cash assistance.
According to state auditors, the unused fund affected 139,300 qualified Filipino beneficiaries.
In reply to COA’s findings, DSWD affirmed to coordinate and submit reports on time to accounting units, support recording of all transactions and conduct regular book reconciliation in accordance with accounting rules.
Commission on Higher Education (CHEd)
COA called out CHEd for its low-utilization rates as only P 59.97 billion out of its P 72.83 billion budget -82.34% of total budget allocation were obligated.
In its reply, CHEd points back at COA for “inaccurate and misleading reports”, stressing that the use of funds from Bayanihan Act 2 had been extended to June 30, 2021.
The commission added that upon the expiration of Bayanihan 2, P 297,540 of funds for subsidy had been released and benefited 60,782 students.
For the online learning budget, CHEd said it obligated P 2.10 billion and had disbursed P 2.96 billion which resulted in a “99% utilization rate.”
Department of Education (DepEd)
COA flagged DepEd with lapses in the use of P 3.22 billion worth of funds as of December 31, 2020.
Included in these lapses are; Delay in the release to regional offices and school divisions of some P1.39 billion, only P915.63 million was released from ₱2.23 billion obligated for six regional offices, ₱29 million was not used by seven regional offices, and flawed, incomplete, delayed production and delivery of learning modules.
In reply to COA’s findings, DepEd iterated in their statement that “none of the initial findings pertained to corruption, malversation of public funds, negligence or betrayal of public trust.”
“The nature of the observation issued by the commission is a way for the audited agency to rectify deficiencies and improve the management of its budget through the former’s recommendation,” the DepEd added.
Department of Labor and Employment (DOLE)
DOLE was flagged by COA for the “insufficient internal control measures” in granting aid to workers impacted by the COVID-19 health crisis. The deficiency resulted in excessive payments, and unclaimed cash aids in partner money remittance centers.
Under Bayanihan Act, DOLE was allocated P 7.31 billion fund for its cash aid programs such as COVID-19 Adjustment Measures Program (CAMP), Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) #Barangay ko, Bahay ko, and Abot-Kamay ang Pagtulong (AKAP).
DOLE claimed that P 7.27 billion of the funds allocated were used, however, COA observed several deficiencies, including P 1.023 million tagged to multiple payments of cash aid.
In reply to COA’s findings, DOLE cleared out that the state auditors’ findings were already resolved.
“The issues on the alleged excessive payments denied claims and unclaimed assistance were already addressed initially by the DOLE by way of management comments,” DOLE said in a statement.
