Baguio City cites Covid19 situation for unauthorized cash advances

April 25, 2021 Headlines

BAGUIO CITY (April 22, 2021) – The Baguio City government cited “the extraordinary circumstance brought by Covid19,” that prompted key officials to break accounting and auditing rules and regulations.
The Commission on Audit (COA) earlier flagged the city government over questionable cash advances amounting P61million for its supposed COVID-19 response in 2020. The audit body said the cash advances were granted to two accountable officers without any specific purpose and supporting document and despite their previous unsettled cash advances.
But Engr. Eugeneo Buyucan, chief of the General Services Office (GSO) of the Baguio City government in his answer to the COA AOM however argued, “given the extraordinary circumstance (last year), “certain accounting and auditing rules and regulations could not be strictly implemented.”
Buyucan, whose official answer to COA was also forwarded to Baguio City accountant Antonio Tabin and Baguio City mayor Benjamin Magalong said, “all cash advances were for Covid19 operations and all procurement made were covered by Purchase Requests by the various departments based on their assessment of the actual situation on the ground.”
The GSO official also told the COA that the scarcity of commodities during the ECQ prompted the city government to “immediately purchase what is available from suppliers operating at that time. This explains why, Buyucan claimed, “the technical specifications and quantity could not be specified as various suppliers offer different brands/items.” He though remarked that, “at the end of the procurement, the needs of the end-users were satisfied and complied.
Every item delivered was accepted and inspection by the end-user and the GSO, he told COA. The GSO officer also noted, “should there be any counter-offer, it was ensured that the item delivered is of equal or higher specifications.”
Buyucan though admitted before the COA that supporting documents required from both supplier and end-user were not immediately complied with, while arguing that “the situation then where mobility and availability or accountable person (was) affected.” He cited that employees then were on work-from-home schedule, end-users were busy attending to Covid response, while the Office of the City Social Welfare and Development Oficer were packing relief goods and likewise the Health Services Office were attending to triange and isolation facilities.
The GSO official further cited that the settlement of the cash advances were affected because the Baguio City police were manning checkpoints while other offices (of the city government) were busy “in the SAP, distribution of meals, assistance in packing, etc.” Buyucan also told COA that GPPB Circular No. 01-2020 authorizes head of the procuring entity to delegate the authority on the transfer of cash advance to the GSO Accountable Officers.
“From several meetings conducted during the ECQ and MECQ, the Head of Procuring Entity (HoPE) authorized he GSO to directly negotiate or conduct procurement activities, subject to award by the end-user (HoPE, HSO, OCSWDO, etc.). The payment of cash, Buyucan reasoned, “greatly benefitted the City in securing the needed items immediately at the most advantageous price since all suppliers refused to part with their merchandize unless they are fully paid.”
The GSO official further argued that they paid in cash during their procurement of needed items during the ECQ and MECQ because, “banks only operated at limited houses with limited working capacity. Cashiers from the CTO (City Treasurer’s Office) likewise had a work-from-home schedule; therefore the process was adjusted to ground situation.”
It is contrary to expeditious service for GSO to still process the check per purchase made, Buyucan explained. “Most suppliers preferred cash payment considering the constraint in converting checks to actual cash,” he stressed.
Buyucan further explained that they have secured the Sales Invoice from suppliers, in relations to the COA observation that only collection receipts were issued by suppliers. “Rest assured, they have received the corresponding payment for their items,” he said.
He also explained that they corrected the apparent observation of COA on the payment to Rigging Trading instead of JP Acosta, “upon verification, there is co-ownership between JP Acosta and Rigging Trading and we have secured supporting documents for the matter.” Buyucan assured payment of the items gotten from the said supplier have been received.
Artemio A. Dumlao/ABN