Funds amounting to P56.206 million that were transferred to the Province of Agusan del Sur in 2006 have remained unliquidated, according to state auditors.
The sum was transferred to the province for the Mindanao Sustainable Settlement Area Development (MINSSAD) Project, a poverty alleviation project funded by the Japan Bank for International Cooperation (JBIC), implemented under the administration and monitoring of the Department of Agrarian Reform (DAR).
In a 2014 audit report on the National Irrigation Administration (NIA) Special Fund by the Commission on Audit (COA), the auditors said that “the alleged unresolved issues with the Province of Agusan del Sur, recipient of infrastructure component of the Mindanao Sustainable Settlement Area Development (MINSSAD) Project, a poverty alleviation project, resulted in the non-liquidation of the funds amounting to P56.206 million transferred to said local government unit (LGU) in 2006.”
The NIA implemented the project’s infrastructure component through the LGUs by virtue of a memorandum of agreement (MoA).
In their audit of the Due from LGU account, the auditors noted that the P56.206 million was transferred in 2006 to the Province of Agusan del Sur for the MINSSAD Project.
“It was noted, however, that there were no NIA monthly reconciliation reports for the project expenditures or any form of monitoring report showing how the MINSSAD project was implemented,” the auditors said.
“According to the NIA staff, the monitoring of the project was not sustained due to the refusal of the Province of Agusan del Sur to liquidate the said fund transfer unless some issues with the PLGU are resolved. The details of the issues between the parties, however, were not disclosed,” they said.
In effect, they added, the fund transfer remained unliquidated despite the MINSSAD Project’s completion in 2008.