THE Commission on Audit (COA) has affirmed the notice disallowing the Laoag City government’s procurement of chemicals for anti-dengue fumigation worth P3.18 million in 2019 that used the local government’s calamity funds.
In a nine-page decision released only on Thursday, the COA en banc denied the petition for review filed by Mayor Michael Marcos Keon, OIC city accountant Ferdinand Quiroga, city budget officer Nelda Casas, city planning officer Ruby-Ann Ramos-Bunalade, and city health officer Renato Mateo.
The city officials were held liable in the Notice of Disallowance issued on June 25, 2020 of the payments made to the supplier of 500 liters of Cyfluthrin 5% EW and 200 cans of Temephos lg, both chemicals used in anti-mosquito fumigation.
Auditors said the cost was improperly charged against the city’s Quick Response Fund (QRF) which, under existing rules, could only be tapped after a declaration of a state of calamity by the president, the Sangguniang Panlalawigan, or the Sangguniang Panlungsod.
The city government’s action was predicated on a statement of the Department of Health (DOH) on August 6, 2019 requesting that the National Disaster Risk Reduction and Management Council (NDRRMC) be convened to declare a national dengue epidemic after recording 146,062 cases from January to July 2019 which was 98 percent higher than the previous year.
The audit team, however, said the declaration of a national epidemic is not synonymous to a declaration of a state of calamity under which the QRF may be validly spent.
In their petition, the Laoag City officials argued that Section 21 of the Philippine Disaster Risk Reduction and Management Act of 2010 (RA 10121) does not require the declaration of a State of Calamity. It added that the Local Government Code of 1991 (RA 7160) has no provision regarding the use of the QRF.
Likewise, petitioners pointed out that it was not disputed that, despite procedural questions, the fund was used for a public purpose. They stressed that even before the procurement, there was already a high incidence of dengue in the city.
The COA en banc, however, sustained the COA regional director’s stand noting that the city officials did not refute the finding that they did not comply with the condition set under Joint Memorandum Circular No. 2013-1 issued by the NDRRMC, the Department of Budget and Management (DBM) and the Department of the Interior and Local Government (DILG).
“These guidelines and safeguards are enacted to ensure that the limited funds are used for the intended purpose when it becomes necessary. The petitioners failed to justify the release and use of its QRF for the payment of Cyfluthrin 5% EW and Temephos. Thus, the ND (notice of disallowance) is affirmed,” the COA said.
Other than being held liable for the disallowed amount, the city officials may also face further investigation by the Office of the Ombudsman for improper use of public funds.
The COA en banc directed its Prosecution and Litigation Office to forward the audit records to the Ombudsman “for investigation and filing of appropriate charges against the persons responsible if warranted.
