The Commission on Audit (COA) has denied the petition of former Philippine Southeast Asian Games Organizing Committee (PHILSOC) President Jose "Peping" S. Cojuangco Jr. who sought relief from the notice of disallowance (ND) over the P27.2 million used for the 2005 Southeast Asian (SEA) Games.

Cojuagco filed a Petition for Relief from Judgment and Exclusion from Liability, which was treated by the COA as a Petition for Review, concerning ND No. 2015-004(2005) dated Nov. 11, 2015 on the liquidation documents relative to the funds transferred to PHILSOC for the 2005 SEA Games in the total amount of P27,224,245.24

The PHILSOC received the ND on Dec. 28, 2015 and filed the Petition for Review on Oct. 10, 2017. The COA pointed out that the petition was filed 650 days from the receipt of the ND, which was already beyond the reglementary period.

But in the interest of justice, the COA still decided on the petition based on its merits - and still found it devoid in merit.

Former President Gloria Macapagal Arroyo issued an Executive Order in 2002 which directed all agencies to work in coordination with the Philippine Olympic Committee (POC) and PHILSOC towards the efficient holding of the 23rd SEA Games from Nov. 27 to Dec. 5, 2005, and the government alloted P300 million for its funding.

A total of P167,634,507.50 was released to PHILSOC. However, the audit team leader (ATL) flagged the P27.224 million as a “questionable expenditure” because the documents submitted included expenditures for transactions that were not approved by PHILSOC officials or without supporting receipts or documents.

The persons held liable were Cojuangco, PHILSOC Secretary General Stephen C. Hontiveros, Deputy Secretary General Jose Capistrano, Jr., and Treasurer Ernesto R. Luis.

In Cojuangco’s Petition for Review, he argued that the Philippine Sports Commission (PSC) did not compel PHILSOC to observe government rules on liquidation and audit.

He said that PSC Chairman William I. Ramirez did not compel PHILSOC to observe government rules. Thus, Cojuangco said Ramirez should be faulted for PHILSOC’s alleged non-compliance and should be held liable for serious neglect of duty.

As a non-government organization (NGO), Cojuangco added that PHILSOC relied on “generally accepted accounting principles” and no longer adhered to Government Accounting Standards.

However, the COA disagreed since the funds transferred were used for the 2005 SEA Games.

“Even if the fund was transferred to a non-governmental entity, it retained its character as a government fund and, as such, was subject to the fundamental principles governing the financial transactions and operations of any government agency,” the COA said.

It stressed that PHILSOC is mandated to keep and maintain financial and accounting records, and it should have complied with proper documentation.

The eight-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana.