THE Commission on Audit has granted the appeal of former Metropolitan Manila Development Authority (MMDA) chair and now Sen. Francis Tolentino and former assistant general manager Edenison Fainsan for the lifting of the notice of disallowance issued against the P15 million confidential and intelligence expenses (CIE) of the agency in 2013.
The decision, signed by COA Chair Gamaliel A. Cordoba and Commissioner Roland Café Pondoc, effectively recalled the October 24, 2014 notice of disallowance and relieved Tolentino and Fainsan of any liability.
Audit records showed the two MMDA officials recommended and approved the release of cash advances for the MMDA’s confidential and intelligence operations for the first semester of 2013.
However, on post-audit, COA’s Intelligence and Confidential Funds Audit Unit (ICFAU) issued an audit observation memorandum (AOM) asking for clarifications on deficiencies noted with regard to the liquidation.
Auditors said even activities that should otherwise be covered in the regular scope of MMDA services were charged against the CIE.
Likewise questioned were items including “purchase of information” and “payment of rewards” as they noted that these activities were conducted in coordination with other government agencies.
The ICFAU also sought proof of submission of the accomplishment report to the Office of the President which was a requirement in the 2013 General Appropriations Act.
While the MMDA complied with the AOM by submitting additional documents, including certified copies of checks and written justifications for the CIE, the ICFAU still issued a Notice of Suspension on the grounds that the justifications given were not specific enough and “huge amounts of intelligence funds were spent or given to a few individuals as payment for purchase of information,” cash rewards, rental, and other incidental expenses.
In his additional explanation, Fainsan said the P15 million “was utilized to finance activities of the Presidential Task Force on Transport Strike and/ or Mass Action (TRASMA), which is directed to take charge of government actions and responses on transport strikes and similar incidents.”
The end users of the fund were identified as “various individuals, including personnel of the MMDA assigned in the field, who were involved in the operational aspect” as well as “various intelligence units of national and local governments” for law enforcement aspects.
The ICFAU rejected the explanation for lack of merit and issued a Notice of Disallowance holding Tolentino and Fainsan liable.
In their appeal, the MMDA officials noted that while Executive Order No. 243 provided for a P5 million budget for the Presidential Task Force of TRASMA, the fund was never actually released to the MMDA whose chairperson was the designated TF Head.
They explained that to carry out its mandate, the agency used its intelligence and confidential funds.
They pointed out that not a centavo of the CIE went to salaries or wages of any employee or elected official, either as overtime pay, allowances or additional compensation.
The COA en banc sustained Tolentino and Fainsan, noting the ICFAU Memorandum dated March 23, 2021, which included a breakdown of MMDA’s P15 million CIE — P8.42 million for purchase of information, P2.55 million as payment of rewards, P1.95 million for rental and incidental expenses, and P2.08 million for supplies, materials, travelling expenses, and meals.
The same memo held that the certification from Tolentino as head of the agency that the intelligence fund was “utilized in connection with the intelligence — counter-intelligence activities of the MMDA” served as adequate basis in the audit of confidential/intelligence fund.
“Wherefore, the appeal of former Chairperson Francis N. Tolentino and Assistant General Manager Edenison F. Fainsan, Finance and Administration, both of the Metropolitan Manila Development Authority, is hereby granted. Accordingly, Notice of Disallowance …dated October 24, 2014, on the cash advances for confidential and intelligence activities of the agency for calendar year 2013, …is lifted,” the Commission ordered.
