Auditors put Cebu City government on notice for failure to use P702M in project funds

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Auditors put Cebu City government on notice for failure to use P702M in project funds
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The Commission on Audit says in its annual report that the city government’s accumulated balance indicates planning deficiencies.

CEBU CITY, Philippines – The Commission on Audit has flagged the city government of Cebu for accumulating a balance of around P702.89 million in 2022 due to underutilizing and not using funds intended for various government projects.

The subsidiary record submitted to state auditors revealed that the funds had been accumulated for varying periods, ranging from one year to more than 16 years. Funds that were unreturned after project completion amounted to more than P959.94 million, while funds from projects considered no longer implementable amounted to some P11.87 million.For instance, COA cited the underutilization of funds intended for the Bus Rapid Transit Project among the listed projects. The project is a result of a December 28, 2016 agreement between the World Bank and the national government through the Department of Transportation .

To make matters worse, COA’s findings showed that much of the charges from the BRT Project fund, totaling P6.45 million, were solely spent for salaries for “job order” workers or people contracted to work during specific durations. “Albeit understandable, the length of time that has already elapsed and the consequences of such delay which includes the dilution of the money value and the continued inability of the target beneficiaries to enjoy the project outcome may already indicate deficiencies in planning,” the state auditors said in their report.State auditors said the unwarranted withholding of the funds conflicts with COA’s guidelines.

State auditors also warned that the local government could be held liable for the indirect violation of the COA rule and provisions in the Local Government Code unless it returned the funds.

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