• GOCC’s P53M receivables unliquidated

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    Intra-agency receivables of the National Resources Development Corp. (NRDC) totaling P53 million have remained unliquidated more than a year to almost four years since these were transferred to the implementing agency, the Philippine Forest Corp. (PFC), according to state auditors.

    The NRDC is a government-owned and -controlled corporation (GOCC) attached to the Department of the Environment and Natural Resources (DENR) while the PRC, also a GOCC, is a subsidiary of the NRDC.

    In a 2013 audit report on NRDC, the Commission on Audit (COA) said the P54.151-million balance of the intra-agency receivables account included a P53-million fund moved to PFC that remained unliquidated at year-end.

    COA added that the NRDC received subsidies from the Department of Budget and Management (DBM) totaling P76.5 million out of Priority Development Assistance Fund (PDAF) and Disbursement Acceleration Program (DAP) allocations of various lawmakers.

    The allocations were covered by Special Allotment Release Orders (SAROs ) from 2009 to 2012 and were transferred to PFC for implementation of agro-forestry projects.

    “As of December 31, 2013, only P23.500 million or 30.7 percent of the total funds transferred was liquidated, while P53 million or 69.3 percent remained unliquidated,” the state auditors said.

    Under COA Circular 94-013, the source agency shall require the implementing agency to submit liquidation reports and furnish the latter with a copy of the journal voucher taking up the expenditures.

    “The non-liquidation of the transferred funds showed that NRDC was remiss in monitoring the status of the transferred funds, considering that the funds were transferred to PFC from 2009 to 2012,” the auditors said.

    According to them, the PFC’s acting president, in a reply to their audit observation on the unliquidated funds received from NRDC, said the previous management of PFC and the recipient non-government organizations (NGOs) were unable to provide them financial reports and supporting documents despite demand; thus, the funds could not be liquidated.

    The GOCC’s acting president added that the subject funds shall be included in the liquidation plan of PFC because of an Order of Revocation of Certificate of Registration of the Corporation issued by the Securities and Exchange Commission dated June 3, 2014.

    “We recommended that management closely coordinate with the acting president of PFC with regard to the unliquidated funds to ensure that liquidation of the funds transferred are given due course of action,” COA said.

    The NRDC, meanwhile, said it has repeatedly written PFC on the matter with a warning that no future releases would be made until the previous ones have been liquidated.

    “However, management was compelled to release the fund upon constant follow-ups from the offices of legislators who funded the projects out of their PDAF/DAP allocations,” COA’s report stated.

    The NRDC informed auditors that a report on the liquidated and unliquidated amounts has been submitted to the PFC acting president for ongoing investigation and winding up activities.

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