COA flags AMLC for ‘excessive’ seminar expenses

MANILA, Philippines — The Commission on Audit (COA) has called out the Anti-Money Laundering Council over the “excessive” meal and accommodation expenses of AMLC officials and employees during training, workshop and planning activities held in hotels and resorts last year.

A review of AMLC transaction records showed the actual daily expenses of each participant just for meals ranged from P1,600 to P3,250 while daily accommodation expenses ranged from P1,211 to P3,075, the COA said.

In its annual audit report on AMLC for 2022, the audit body noted that the agency spent P7.213 million last year for the meals and accommodations of participant officials and employees in 12 workshops, training and planning activities. The expense exceeded by P4.759 million the maximum daily travel expenses (DTE) allowed under Executive Order 77.

COA pointed out that meals and accommodations expenses exceeded the amount allowed under the DTE, which specifies only from P450 to P660 and P750 to P1,100, respectively.

“Consequently, the excess DTE was P940 to P2,590 for meals and P111.54 to P2,018.33 for hotel accommodation, or a total of P4.759 million in excess payment for the conduct of the 12 activities,” the COA said in its report.

The total number of participants for each training, workshop or planning activity was not specified in the audit report.

But records showed that most of the activities were held in hotels in Quezon City, Pampanga and Rizal. Among the private venues identified in the report were Park Inn Hotel in Mabalacat, Pampanga; Quest Plus Conference Center in Clark, Pampanga; Thunderbird Resort in Binangonan, Rizal and the Luxent Hotel, B Hotel, Novotel and Park Inn by Radisson North EDSA – all in Quezon City.

“Meals and accommodation in excess of the allowable rates under EO 77 for the conduct of 12 training/workshop/planning activities did not exhibit the economical use of government resources,” the COA said.

The COA said the AMLC must instruct its deputy directors to ensure that expenses on training, seminars and planning activities are in accordance with the rates prescribed under EO 77 as applicable for prudence and economy in operations.

“We also recommend that management prioritize the lease of publicly owned real property or venue,” it added.

In a comment incorporated in the audit report, the AMLC maintained that the expenses were reasonable, given the high inflation caused by the COVID-19 pandemic.

“With the high inflation and increased costs of operations, the rate of P1,500-P2,000 under EO 77 would make it extremely hard, if not impossible, for the AMLC to look for a venue that would suit its need,” the AMLC said.

The AMLC cited the 2016 Revised Implementing Rules and Regulations (RIRR) of Republic Act 9184 or the Government Procurement Reform Act, which allows the procuring entity to lease private venues such as hotels and other similar establishments that can cater to official training, seminars, conferences and similar gatherings.

In a rejoinder, however, the COA said that while it acknowledges the provisions of RIRR of RA 9184, the AMLC still failed to provide a justification for resorting to conduct the activities at private venues instead of at government-owned properties.

Furthermore, the audit body said the AMLC also failed to justify why the participants have to stay overnight in the hotels even if most of the events were just held within Metro Manila.