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COA flags DILG for unauthorized maintenance of LandBank accounts

Philippines | National

COA flags DILG for unauthorized maintenance of LandBank accounts

By Chito Chavez

The Commission on Audit (COA) flagged the Department of the Interior and Local Government (DILG) for ‘maintaining’ four unauthorized bank accounts, stressing that “their creation and retention’’ as of 2023 “have no legal basis.’’

However following the COA’s report, the DILG closed its four trust fund accounts at the Landbank of the Philippines (LBP) with an aggregate amount of over P12.98 million.

In a statement, the DILG explained the accounts were used as depository accounts for funds from other national government agencies, adding that “the accounts were created to ensure the prompt release of funds to support the implementation of various programs and projects.’’

Earlier, the DILG had closed the P1.73-million RO IX Trust Regular Account and the DILG-NCR Local Government Academy Special Project Account with P111,009.42.

Further, the DILG is processing the closing of the P1.116-million DILG-NCR Special Project Account and the P10.025-million DILG Central Office Trust Account.

For the latter, the Department has returned the unutilized P2.363-million balance to the source agency; and has utilized the P5.834-million from the Department of Trade and Industry and the Bureau of Fire Protection-Interagency Task Force.

“As of today (December 28), the BFP-IATF fund balance of only P199,627.90 shall be utilized for unpaid claims, afterwhich, any remaining balances shall be remitted to the Bureau of Treasury (BTr) at year-end.

The DILG is now coordinating with the BTr to open the Modified Disbursement System Trust Account under the LBP.

“This account will be used for fund transfers granted or entrusted to the Department and may take effect in January 2025,’’ the DILG explained.

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