The Commission on Audit (COA) has warned it would issue notices of audit suspension to the Davao del Sur provincial government as state auditors questioned officials on the distribution of some P70.71 million worth of relief goods distributed to families adversely affected by the 2019 coronavirus disease (COVID 19) epidemic.
COA had also issued demand letters asking former and incumbent officials to liquidate various amounts in cash advances they received as of December 31, 2020.
Davao del Sur Gov. Douglas RA. Cagas was listed as having failed to liquidate P8.75 million in cash advances taken from the province’s confidential fund, COA records showed. Unliquidated cash advances for 2020 totaled P9,634,732.27 “Incomplete data in the province’s Distribution List Templates used to document the relief goods costing P70,711,445.75 which were released to those affected by the province-wide emergency health lockdowns, contrary to Section 2 and 4 of Presidential Decree (PD) NO. 1445, resulting in difficulty of ascertaining the efficiency of the distribution thereby casting doubt on its efficacy and consequently necessitate the issuance of notices of audit suspensions,” revealed the 2020 Annual Audit Report for Davao del Sur.
Nevertheless, audit examiners headed by Director Roy L. Ursal commended the provincial government for the “enormous undertakings involved” in the distribution of relief goods to its constituents.
However, the audit team pointed out that examination it made indicated that lapses in the documentation of the program, including the failure to have the distribution list signed by some beneficiaries and the team leader. Vital information were also not submitted for audit, “thereby casting doubt as to the efficacy of the province’s response to the COVID 19 pandemic that would warrant the issuance of notice of audit suspension.” COA also flagged the payment of P7.45 million in total COVID-19 hazard pay to the province’s workforce, noting that the payments were made despite the absence of internal rules and regulations adopting hte Alternative Work Assignment.
Auditors doubted the “regularity, propriety and validity” of the hazard pay granted to job order and regular personnel in 2020.
In the same audit report, the audit team said financial transactions in the disbursement of funds under the Bayanihan to Heal As One Act or Bayanihan I were not covered with complete documentation.
“Difficulty in the determination of the propriety of disbursement transactions in the total amount of P20,773,300 due to the incomp;lete documentation in the procurements of various goods relative to the Bayanihan to Heal as One Act contrary to Government Procurement Policy Board (GPBB) Circular 01-2020, thus rendering doubt on the validity and regularity of the subject transactions,” the audit report stated.
The report added: “To ensure that the government has availed of the most advantageous price with the necessary safeguards for the prevention of abuses and corruption in the procurement process as aimed in the issued circular, all documentary requirements shall be made obtainable.” The provincial government agreed to submit a complete documentation of the transactions. However, officials explained that suppliers opted cash basis transactions in view of the irregular work hours of banks in the province.