The Commission on Audit has ordered an investigation into the failure of the Lanao del Sur provincial government to implement 13 development projects which have already been granted advance payment representing 50 percent of the project cost.
COA issued the order as it flagged the accumulation of unliquidated cash advances that has reached P76 million.
The audit agency made these observations in the recently-released 2019 annual audit report on Lanao del Sur under Gov. Mamintal Alonto Adiong Jr.
In the audit report submitted by Director Bato S. Ali Jr., COA disclosed that the provincial government released in 2019 a total P45.6 million to 21 municipalities comprising the province to finance their respective development projects.
“Of the 21 projects that were entered into agreement between the Provincial Government and 21 Municipal Local Government Units, 14 were not implemented in violation of Procurement Law and of the Memorandum of Agreement,” COA reported.
The audit records showed those that received funding assistance, localities that were able to report a 100 completion of their projects. They were the towns of Calanogas, Pualas, Balindong and Taraka.
“It has been a year since the signing of the MOA between the PLGU – Lanao del Sur and various MLGUs and still the projects were still zero completion,” noted COA.
State auditors said at least 50 percent of the total project costs ranging from P1.5 million to P3 million have been paid after the MOA signing.
“Investigate the reasons or factors why there were no implementation on the 13 projects despite the released 50 percent 1st Tranche and consider termination of the said projects, if warranted,” auditors said.
In the same audit report, the audit team noted that despite the non-liquidation of cash advances totaling P76 million, the provincial government continued to grant funds to various local government units.
COA directed the provincial accountant to submit the liquidation documents, stressing that this is necessary in safeguarding public funds “against misuse.”
“Require the inspectorate team to inspect thoroughly the projects. If there are deficiencies and deviations noted as against the approved program of works, require the MLGU to correct at its own expense all defects,” said COA.
Responding to the adverse audit commentary, the provincial government explained that MLGUs with unliquidated accounts have failed to present final billing and evidentiary reports about the status of projects funded out of provincial allocation.