The Commission on Audit (COA) has cleared former Lipa City accountant Ma. Belen M. Villanueva of any liability in the P293 million notice of disallowance (ND) it issued in 2017 over the construction of Lipa Public Market Parking Building (LPMPB).

The case stemmed from the contract entered into by Lipa City with Asset Builders Corporation (ABC) for the construction of LPMPB for P293,125,501.48. COA's audit team issued the ND on findings that there were no available funds for the project, and there were defects in the implementation of the project involving P20,152,321.31. 

COA said the defects included over-estimation of quantities and inclusion of unnecessary items in various items of work, and the application of higher indirect cost of 22 percent instead of 15 percent.

It said the state auditor held Villanueva liable for the transaction since she signed Disbursement Voucher No. 5212-15-07 dated July 15, 2015 with the amount of P35,597,868.31 and she certified that the allotment was obligated for the purpose and that the supporting documents are complete.

Villanueva appealed the ND.  She told COA that she only signed the DV at the time when she was reinstated to the accounting office on July 10, 2015. After only six days or on July 16, she was already re-assigned to the City Environment and Natural Resources Office.

In its decision, the COA approved her exclusion as it ruled that the defects in the implementation of the project -- the cited deficiency or irregularity -- is not the primary responsibility of Villanueva since her certification is limited to the completeness of supporting documents and not to the determination of the validity or legality of each of the documents.

"In the absence of concrete evidence that Villanueva actively participated and/or conspired with the officials of the city government in processing the irregular transactions, this Commission finds her exclusion from liability in order," COA ruled.