Ilocos Sur’s P3.65B Spending Flagged

July 12, 2020 Provincial

The Commission on Audit (COA) is advising the provincial government of Ilocos Sur to settle its audit suspensions and recover unjustified amounts from liable persons before the more than P3.65 billion in disbursements in 2019 and earlier, may mature into disallowances.
COA in its recently release 2019 report saw adverse findings including ballooning loan obligation reaching P1.95 billion, the issuance of notices of disallowances for some P60.3 million in questionable disbursements and infractions of government auditing and accounting rules found in 22 procurement transactions on goods amounting to P996.08 million.
Governor Ryan Singson and the Provincial Accounting Office (PAO) were urged by the COA audit team headed by Regional Director Michael Bacani to give “sufficient attention” to the notice of suspension issued for P3,650,179,710.16 worth of financial transactions.
The COA also believed that the non-settlement of disallowances deprived the Ilocos Sur provincial government of the beneficial use of amounts that should have been recovered from persons liable.
The outstanding loan obligations of the province have reached P1,953,667,194.92. COA warned that loan arrears may result in “additional legal obligations to the disadvantage of the local government unit and its constituents.” The audit agency stressed that infractions in the implementation of the provision of the revised implementing rules and regulations of Republic Act 9184 were revealed in the audit of the 22 procurement transactions on goods worth P996,081,687.33, thus, it said, “there was no complete adherence to the principles of transparency, competitiveness and accountability in the procurement activities of the agency.”
COA specifically questioned the purchase for fertilizers, hybrid seeds, tractors, sprayer medicines, and medical, dental and laboratory supplies and equipment. COA also found out that the mandatory documents for 2019 transactions totaling P94.06 million lacked the approval of Gov. Singson and instead, the documents were signed by the acting provincial administrator.
COA also questioned the “validity, legality, and propriety” of the disbursements of funds granted to Ilocos Sur under Republic Act 7171 or the Tobacco Excise Tax fund. Deficiencies were noticed in the disbursement of P1,480,355,737.34 in tobacco fund, the audit agency reported. COA further advised strict monitoring and following of standards on projects in the province as discrepancies on their qualities of works were observed.
Artemio A. Dumlao/ABN