State auditors reprimanded Tagaytay City officials for ignoring far too long more than P6 million of collectible loans, which farmers and cooperatives took out but have not paid.
The Commission on Audit (COA) urged city officials of the favored summer getaway of city dwellers to visit the P6.3-million loan backlog that had been granted to individuals, farmers and cooperatives “way back to the 1990s.”
The loan aimed to provide startup capital for micro-enterprise projects and basic business management for at least 350 loan takers in line with the programs of the Departments of Agriculture and Social Welfare and Development.
Records disclosed that the loans receivable accounts of Tagaytay City as of 2012 yearend, the latest audit report, reached P6.3 million, the largest part of which was the P2.79 million intended for the Tulong Pangkabuhayan program.
The loans were also used for applications in Quedan and Rural Credit Guarantee Corp. (Quedan–cor) at P1.78 million. Others went to microfinancing (P907,600); capital loan (P778,156.41) and Tulong Puhunan (P37,695).
The beneficiaries of the Tulong Pangkabuhayan were the baran-gays (villages) while Tulong Puhu-nan, capital loans and Quedancor were granted to individuals. Micro finance loans were extended to various districts in the city.
“The accounts had been dormant for several years and no action had been taken by the city government to collect the loans receivables,” the COA said.
In fact, “majority of which were granted way back in 1990s,” the earliest of which was in 1993.
Auditors added that the city also has no copy of loan agreements, data on the debtors and records of payments to substantiate the account.
“Thus, [there is]slim probability of its collection, [which]deprives the city of the use of the amount to finance the same program aimed at elevating the economic condition of its constituents,” auditors said.
Still, the COA asked city officials to flex its muscle in exerting effort to retrieve pertinent records to facilitate collection of the long outstanding loan balances.
The city accountant replied that the city administrator has been instructed to send notices or bills to the beneficiaries.
The city accountant has likewise promised to coordinate with the offices of City Social Welfare and Development and Agriculture on the records of the loans.
John Constantine G. Cordon