THE Commission on Audit has affirmed the February 26, 2018 decision of COA-Region 7 lifting 96 notices of disallowance (NDs) issued against the grant of financial assistance in 2015 to the city’s 80 barangays totaling P596.66 million.
COA Chairperson Michael G. Aguinaldo and Commissioner Roland C. Pondoc sustained the regional office’s position that the basis for the issuance of the notices of disallowances had been mooted by the subsequent action of the Sangguniang Panlungsod.
The audit team and the supervising auditor had previously cited the lack of authorization from the Sangguniang Panlungsod (SP) as the ground for the disallowance.
They noted that the SP made the release of funds conditional to the submission of a barangay development plan and the city council’s approval of such plans prior to disbursement.
Former city mayor Michael Rama vetoed the conditions imposed, saying they overstepped the boundaries between the SP’s functions and budget execution.
From September 1, 2015 to December 31, 2015, the city government distributed the financial assistance to different barangays.
On post-audit, the audit team leader and the supervising auditor issued 96 NDs which carried a requirement that accountable persons and entities must refund the disallowed sum.
Held liable were then mayor (now vice mayor) Michael Rama, acting mayor (now city mayor) Edgardo Labella, city administrator Lucelle Mercado, chief-of-staff to the mayor Dominic Diño, acting city accountant Mark Rossel Salomon, accountant II Giovanni Delgado, acting treasurer Diwa Cuevas, city budget officer Marietta Gumia, acting division head Phoebe Oracoy, local assessment operations officer Hilario Alicante Jr., assistant city budget officer Roseny Reyes, and all the punong barangay who received the cash assistance.
In ordering the disallowance lifted, the COA noted that a year after the issuance of the NDs, the Sangguniang Panlungsod removed the conditions it originally imposed.
