Tagaytay slept on P6-M collectible loan

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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 were left unpaid.

The Commission on Audit 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 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 came for Tulong Pangkabuhayan program at P2.79 million.


The loans were also used for applications in Quedan and Rural Credit Guarantee Corp. (Quedancor) at P1.78 million. Other usages were for micofinancing (P907,600); capital loan (P778,156.41) and Tulong Puhunan (P37,695).

The beneficiaries of the Tulong Pangkabuhayan were in the name of the barangays (villages) while Tulong Puhunan, capital loans and Quedancor were granted to individuals. Micro finance loans were extended to various puroks (districts) in the city.

“The accounts had been dormant for several years and that no action had been taken by the city government to collect the loans receivables,” COA said.

In fact, “majority of which were granted way back in 1990s,” the earliest of which was in 1993 and as of the audit report are non-moving.

Auditors added that the city also has no copy of loan agreements, data of the debtor 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, 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 was already given instruction 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, Agriculture and Cooperative on the records of the loans. JOHN CONSTANTINE G. CORDON

 

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