COA rules: 'No illegal use' of P15-M confidential, intelligence funds of MMDA in 2013
The Commission on Audit (COA) has ruled there was "no illegal use" by the Metro Manila Development Authority (MMDA) of its P15 million confidential and intelligence funds (CIF) in 2013 as it lifted the Notice of Disallowance (ND) it had earlier issued.
In an eight page ruling, the COA granted the petition for review filed by former MMDA chairperson Francis N. Tolentino, now a senator, and assistant general manager Edenison F. Fainsan. They contested COA's ND dated Oct. 24, 2014
"The MMDA's utilization of the CIF falls within the purview of the limitations set by law and thus, there is no illegal use of public funds or property, or technical malversation," the COA Intelligence and Confidential Fund Audit Unit (ICAFU) ruled.
It also ruled that the "MMDA substantially complied with the documentary requirements in the grant and utilization of CIF."
Out of the P15 million, the COA said that P8,420,000 was used for the Purchase of Information, P2,550,000 was given out as Payment of Rewards, P1,950,000 was used for rental and other incidental expenses, while P2,080,000 was used for the purchase of supplies and materials, food, and travelling expenses.
The COA initially flagged the CIF because the listed activities and projects in the Accomplishment Report were among the regular scope of MMDA services.
It said the necessity of the confidential and intelligence activities warranting the purchase of information and payment of rewards was also not apparent or perceptible considering that the listed activities can be done in coordination with concerned government agencies.
It also said there was no proof of submission of Accomplishment Report to the Office of the President, pursuant to Section 60 of the 2013 General Appropriations Act (GAA).
For their part, the petitioners argued that the MMDA was justified in the use of its intelligence fund. They said that aside from uniformed personnel from the Philippine National Police (PNP) and Armed Forces of the Philippines (AFP), civilian personnel with experience on intelligence matters were utilized by the MMDA as Intelligence Operatives (IOs), and they conducted operations that provided the MMDA with vital information.
The petitioners also explained that the P15 million was used as cash advances to finance the activities of the Presidential Task Force on Transport Strike and Mass Action (TRASMA), which is directed to take charge of government actions and responses on transport strikes and similar incidents.
"Considering that TRASMA and its activities are MMDA-related, the MMDA is not precluded from utilizing funds from sources other than the Office of the President, and neither is the utilization of CIF constrained nor limited exclusively to MMDA's resolution," the COA said.
The eight-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioner Roland Cafe Pondoc.