THE Commission on Audit has called out the Light Rail Transit Authority (LRTA) over the questionable transfer of P231.334 million interest earnings from various high-yield savings account (HYSA) investments at the Landbank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) in 2020 and 2021.
Government auditors said P185.849 million was earned from high-yield accounts of project funds for extension projects while the balance of P45.485 million came from project funds for rehabilitation and restoration projects.
The LRTA had previously explained that funds that are not immediately used for operations are deposited in HYSAs with government banks offering best rates for the term to maximize the interest income.
However, the audit team pointed out that under Section 65 of Presidential Decree 1445 and Section 5.3.2 of Department of Finance Circular No. 01-2017, the agency was required to remit interests earned from said accounts to the Bureau of the Treasury (BTr).
“Audit of the subsidiary ledger of HYSA and other supporting documents attached in the journal entry vouchers (JEVs) revealed that the interest earned from the project funds of Rehabilitation and Restoration Projects and Extension projects …amounting to P45.485 million and P185.849 million, respectively were later transferred to various corporate and OPEX (operating expenses)/payroll accounts,” the COA said.
A breakdown of the sums showed P78 million interest from the Line SEP (South Extensions Project) account with DBP Marikina was moved to OpEx/Payroll account while another P65 million from Line 1 SEP went to Line 2 Corporate Account.
The OpEx/Payroll account is with LBP-Marcos Highway while the Line 2 corporate account is with LBP-Baclaran.
