The City of Manila should return an unused balance of P31.868 million to the Bureau of Treasury after proposed projects or programs under the Priority Development Assistance Fund (PDAF) were not fully implemented, state auditors said.
In a 2013 audit, the Commission on Audit (COA) reported that out of the P135,482,420 that the city received from lawmakers, Manila used only P103,613,838.82.
COA noted that P31,868,581.18 remained unutilized and outstanding as of December 31, 2013.
The sum was financial assistance for various health programs, education, livelihood and procurement of goods and supplies sponsored by various lawmakers for the poor.
According to COA, Manila has an unused balance of PDAF from Manila congressmen Benjamin Asilo (P912,645.46), Carlo Vincent Lopez (P11.156 million), Rosenda Ann Ocampo (P6.062 million), Zenaida Angping (P80,000) and former congressman Jaime Lopez (P1.216 million).
Also with unused balances are Sen. Antonio Trillanes 4th (P7.8 million), Sen. Pia Cayetano (P500,000), Rep. Chinchona Gonzales (P900,000), Cibac party-list Rep. Sherwin Tugna (P300,000), Diwa party-list Rep. Emmeline Aglipay (P350,000), Gabriela party-list Rep. Luzviminda Ilagan (P1.1 million) and former lawmakers Catalina Bagasina (P90,000), Rafael Mariano of Anakpawis party-list (P1.1 million), Joel Villanueva (P200,006.73) and Bienvenido Abante (P100,000).
These funds can no longer be used under a Supreme Court decision declaring PDAF unconstitutional.
Auditors recommended to turn over the unused PDAF balance of P31.868 million to the national government for reversion to the unappropriated surplus of the General Fund.
COA also urged suppliers to refund P5,552,889 regarding items that were not delivered to recipients after finding that medical equipment and school supplies procured by the city through the Manila Health Department and Manila Department of Social Welfare, using Lopez’s PDAF totaling P5.523 million, were not received by beneficiaries.
The auditors also called for immediate liquidation of outstanding cash advances worth P6.170 million charged to PDAF funds.
These advances have not been liquidated as of year-end 2013 “thus the propriety of the expenses charged to the cash advance could not be established,” they said.
COA told the city accountant and city treasurer to submit disbursement vouchers and supporting documents required by COA Circular No. 2012-001 that would establish the regularity and propriety of the disbursements that were charged to PDAF in the total amount of P1.770 million and P15.347 million, respectively.
The auditors also recommended the ABS-CBN Foundation Inc., and the Federation of School Sport Associations of the Philippines to liquidate the respective funds transferred to them, while reminding the local government to strictly adhere to COA rules on fund transfers.
They noted that funds transferred totaling P4.30 million “were not accounted and recorded in accordance with the requirements” of COA.
The sum is broken down into P800,000 (proponent: Sen. Francis Escudero) for a paper making livelihood training program, and P3.5 million (Trillanes) for financial assistance for national sports tournaments.
The transfer of the funds was not supported by documents required under COA Circular No. 2007-001 and have not been recorded as funds transferred subject to liquidation, the report read.
Such documents include Work and Financial Plan identifying priority projects that non-government organizations may implement and the criteria on how the NGOs were selected.