The controversial Procurement Service (PS) under the Department of Budget and Management has kept over P10.8 billion in transferred funds for years without returning the money to the Bureau of Treasury.
The Commission on Audit disclosed in the 2020 annual audit report (AAR) for the PS that over P8.9 billion had been hoarded for over four years until 2020 while the remainder have aged two to three years.
“Inter-agency transferred funds and other Payables totaling P10.870 billion pertaining to advances for CSE (commonly used supplies and equipment) which remained undelivered/unutilized and dormant for years were still not remitted to the Bureau of the Treasury, thus, depriving the government the use of funds in the implementation of its project/programs,” COA said in the report.
The relatively-unknown DBM agency has been under fire lately after its former executive director, Christopher Lao, was mentioned in the Senate inquiry on the reported mismanagement of P67.32 billion in COVID-19 funds/ Lao, who resigned from the PS last June, is being sought by lawmakers for him to shed light into allegations that the DBM office procured overpriced face masks, face shields and other medical supplies that the DOH ordered using at least P43-billion it transferred to PS last year.
At least P2 billion is left of the DOH fund transfer, it was revealed during a congressional hearing conducted by the Lower House Committee on Public Accounts on Friday, August 20.
COA auditors said the PS must not continue keeping the unspent funds.
The procurement agency, audit examiners stressed, has the responsibility to surrender the advances given by client-agencies to the Bureau of Treasury.
The PS was also asked by COA to inform the client agencies of the remittance to the BTr “so that proper adjustments will be made in the client agencies’ respective books of accounts.”
“The non-remittance of the total advances of P10.870 billion representing unutilized or undelivered CSEs and unidentified depositors in the books, deprived the government of the sue of funds in the implementation of its projects/programs,” said COA.
At yesterday’s congressional hearing lawmakers chided the PS for keeping much-needed cash in its coffers when there is a dire necessity for government to raised funds to finance the various COVID-19 response programs.
Probinsyano Ako Partylist Rep. Jose “Bonito” C. Singson Jr said Lao will be summoned to explain not only the purchase of allegedly overpriced CSEs, but also to shed light into the ‘parking’ government funds entrusted by various agencies.