‘No proof of victims’; P20,000 each for mayor, officials disallowed in audit
There is no proof that they are calamity victims.
With this and other observations about a misuse of funds, the Commission on Audit (COA) has disallowed the P20,000 calamity assistance collected by each Cebu city employee and official led by Mayor Michael Rama on December 2013.
Each recipient will have to refund the amount — unless officials can get auditors to reverse their stand.
“The payment of P83.48 million was considered irregular… hence, disallowed in audit,” wrote State Auditor IV Cymbeline Celia Chiong-Uy in a notice to the mayor.
City Hall was given six months to appeal the Notice of Disallowance dated June 23, 2014 before it becomes “final and executory”. Copies were received only last week.
Vice Mayor Edgar Labella who presided in the City Council session where the ordinance for the calamity aid was passed, said they will file a motion for reconsideration.
“We will go through the process and may elevate the matter to COA Manila,” he told Cebu Daily News.
“It can still be reconsidered,” he said.
COA named Rama and 39 other city officials and government employees “liable” for the unauthorized release of the calamity assistance.
Mayor Rama was cited for approving supplemental budget no. 2379 and 2380 which authorized the allocation of cash and for appointing OIC city treasurer Diwa Cuevas as its special disbursing officer.
Others named liable for the transaction were OIC City Accountant Mark Rossel, then city administrator Jose Marie Poblete, audit examiner Mary Ann Cabarles, budget officer 1 Phoebe Ina Oracoy and Dominic Dino who certified that funds charged for the outlay were lawful.
Vice Mayor Labella and 12 councilors were held liable for passing City Budget Ordinance No. 2379 amounting to P133.7 million which included P84.5 million for calamity assistance.
The councilors are Nestor Archival Sr., Mary Ann delos Santos, Dave Tumulak, Nendell Abella, Sisinio Andales, Alvin Arcilla, Roberto Cabarrubias, Nida Cabrera, Gerardo Carillo, Alvin Dizon, Eugenio Gabuya Jr. and Noel Wenceslao
PENDING CASE
The auditor’s notice reinforces a 2013 audit report which found the release of calamity aid to City Hall personnel “highly questionable”
Mayor Rama and other officials are already facing an administrative complaint before the Office of the President on this matter after lawyer Remeylio Delute filed a case for grave misconduct and abuse of authority.
Rama, Labella and 12 city councilors were impleaded.
Not included in the complaint were Councilors Margarita “Margot” Osmeña, wife of former mayor and BO-PK leader Tomas Osmeña, Lea Japson, Richard Osmeña and James Anthony Cuenco.
IRREGULAR
In Uy’s six-page notice of disallowance, COA said it audited payrolls amounting to P84.5 million which was used for the release of the P20, 000 calamity assistance on Dec. 23, 2013 after Cebu was hit by a 7.5 magnitude earthquake and super typhoon Yolanda.
Cash advances of P87.4 million were released to the treasurer Cuevas – P72 million and Agapeta Cesa – P15.4 million.
Of this amount P83.5 million was liquidated while another P3 million was returned to city hall coffers.
Auditors first said the release of the cash advance to Cuevas was “irregular” because she was not yet a bonded officer when the money was given to her care. Cuevas became a bonded officer from Dec. 26, 2013 to Dec. 25, 2014.
The City Council’s grant of calamity aid to government employees in a supplemental budge is not allowed “even in times of public calamity” under the Local Government Code, said auditors.
Under the Code, a supplemental budget may be enacted “to purchase supplies and materials or the payment of services which are exceptionally urgent or absolutely indispensable” to prevent loss of life or property in areas declared in a state of calamity by the President.
The release of calamity assistance is subject to NDRRMC-DBM-DILG Joint Memorandum Circular No. 2013-1 dated March 23, 2013 of the National Disaster Risk Reduction and Mitigation Council – Department of Budget Management.
“There were, however, no proof showing that those granted calamity financial assistance were victims of the 7.2 magnitude earthquake and Yolanda storm surge which occurred on October 15, 2013 and November 8, 2013, respectively, and were duly validated and certified accurate by the Office of the Civil Defense,” said Uy’s notice.
It said “payment of financial calamity assistance was not even included among the disaster risk management program and activities to be funded from the Local Disaster Risk Reduction Management Fund.”
The P84.5 million allocation was not sourced from the calamity fund. It was charged against the Office of the City Administrator and recorded under an account labeled “Donations”, which is used to record donations to other levels of government/private individuals/institutions.
This makes it “irregular”, said auditors.
Another violation: cash advances in excess of P15, 000 per transactions are unauthorized unless this is allowed by law or covered by a prior COA approval.
COA Circular No. 97-002 requires that cash advances released “shall be equal to the net amount of the payroll for the pay period.”
The grant of calamity assistance is also not a benefit authorized under the Salary Standardization Law./with reporter Jose Santino Bunachita
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