THE provincial government of Catanduanes is maintaining 12 time-deposit accounts in three different banks containing a total of P258.52 million even if there is no evidence to show these are idle funds.
Worse, government auditors found that the cash placements were made in the absence of any resolution from the Sangguniang Panlalawigan (SP) authorizing them.
The Commission on Audit has recommended that Gov. Joseph Cua secure a post-facto authority from the SP noting that, as the province’s legislative body, it is vested with powers under RA 7160 or the Local Government Code for budget appropriation.
In its comment to the audit observations, the provincial government cited SP Resolution No. 126-2209 which authorized the governor to open a time deposit account with the Philippine National Bank in Virac; SP Resolution No. 005-2010 authorizing the placement of “idle funds” in time deposit with the Land Bank of the Philippines; and SP Resolution No. 213-2012 authorizing similar deposits with the Development Bank of the Philippines.
The province said because of the “enormous amount of available cash,” it opted to first conduct a careful planning and budgeting process to identify the most address programs relative to the COVID-19 pandemic and damage sustained from Super Typhoon Rolly.
The audit team, however, pointed out that the most recent of the resolutions cited is already more than eight years old.
“Circumstances change in succeeding years and the PGC (provincial government of Catanduanes) may need funds to finance priority projects, thus SP may consider terminating investment in time deposit and authorize utilization of such funds,” the COA said.
At the same time, while the funds are tied up in the time deposit accounts, auditors pointed out that this deprives the province of opportunity to respond quickly in the event of necessity.
“The unauthorized placing of cash in time deposits restricted the immediate use thereof.
The cash deposits were not readily available for disbursements and could not be immediately used to finance or augment inadequate funds for programs intended for delivery of basic services,” they noted.
