Gov’t urged to run after officials for ‘disallowance’

The government was urged yesterday to run after officials and employees who had spent P4.8 billion in public funds that were later disallowed by the Commission on Audit.

Called “disallowances,” these illegal disbursements and expenditures must be recovered by the government, Sen. Juan Miguel Zubiri said in a statement.

By department, the top 10 with officers and employees with disallowances are the Department of Finance (P1.89 billion), Department of Public Works and Highways (P1.05 billion), Department of the Interior and Local Government (P248 million), Department of Education (P229 million), Department of Agriculture (P217 million), state colleges and universities (P176 million), Department of Health (P176 million), Department of Transportation and Communications (P91 million) and Department of Environment and Natural  Resources (P79 million).

According to Zubiri, the DOF is expected to top the list because it controls city, municipal and provincial treasurers, “officers who handle funds and are subjected to rigorous audit.”

“While an unliquidated cash advance, for example, would mean that no report has been made on how the money was spent, like delay in the submission of receipts and other pertinent documents, a disallowance carries with it the ruling that the money was spent not in accordance with law,” Zubiri said.

“Government must insist on refunds because it needs the money and to show that breach in spending rules is not allowed,” Zubiri said.

Based on documents it submitted to the Senate, the COA reported that as of Dec. 31, 2006, P4.788 billion worth of expenditures was disallowed for not conforming with laws and regulations.

“I understand that notices have been sent to concerned personnel. And if they refuse, then the appropriate administrative and criminal charges should be pursued,” Zubiri said.

Based on records, the P4.8 billion in disallowances covers national government agencies only and does not include similar reported infractions in the government-owned and controlled corporations sector and local governments.

The disallowances were discovered in routine COA audits to check if expenditures made by accountable officers are covered by legal authorizations.

Bulk of the disallowances came from departments in the executive branch, with a total of P4.472 billion. In contrast, the legislative and judicial branches posted disallowances of P20,000 and P794,000, respectively.

Some P142.2 million in disallowances was attributed to personnel of constitutional offices, with the Commission on Elections accounting for P140.7 million, and the Audit and Civil Service commissions having less than a million pesos each.

Records show the P4.8 billion in disallowances is only a fraction “of the bigger universe of government receivables, which include unliquidated releases, cash advances, grants and donations.”