Fund transfers totalling P3.74 billion made by the Department of Agrarian Reform (DAR)’s Office of the Secretary and the department’s 15 regional offices remained outstanding as of the end of 2013, state auditors said.
The Commission on Audit (COA) said in a 2013 audit report on the DAR that out of this sum, P1.81 billion are long outstanding and aged one to over three years.
“Funds transferred by all DAR offices to various NGAs [national government agencies], GOCCs [government owned and controlled corporations], LGUs [local government units]and NGOs/POs [non-government organizations/people’s organizations] showed unliquidated balance of P3.744 billion as of December 31, 2013,” auditors said.
In LGUs, the funds were intended for the construction/rehabilitation of potable water supply projects, post-harvest facilities and farm-to-market roads.
As to NGOs/ POs, these were for various technical aid and trainings for livelihood development programs, conduct of Institutional Development activities, and implementation of Microfinance Innovations in Cooperatives in Agrarian Reform Areas.
Those provided to NGAs were for the implementation by the Department of Public Works and Highways of infrastructure projects under DAR’s Agrarian Reform Infrastructure Support Project 3 (ARISP 3) and Mindanao Sustainable Agricultural and Agrarian Reform Project (MinSAAD), payment to the Department of Budget and Management-Procurement Service for supplies and materials and Performance-Based Grant System of the LGUs implemented by Department of Finance-Municipal Development Fund Office.
Those in GOCCs were for the construction and rehabilitation of various infrastructure projects under ARISP 3 Projects by the National Irrigation Administration, implementation of Agri-finance Services under DAR’s Agrarian Reform Communities Project 2 (ARCP 2) by Land Bank of the Philippines, and implementation of Philippine-Israel Center for Agricultural Training Expansion projects by the Central Luzon State University.
ARISP 3, MinSAAD and ARCP 2 are among DAR’s foreign-assisted projects.
Reasons cited in the audit report, among others, for the remaining unliquidated amounts include “failure of management to monitor the accounts and require the implementing agencies to submit liquidation reports within the prescribed period.”
Under NGAs, also mentioned to have contributed to the non-liquidation of fund transfers was “the lack of monitoring and coordination among implementing agencies particularly for projects located in remote areas.”