THE Commission on Audit (COA) has asked the Ombudsman to look into bank checks amounting to P16.2 million that were issued by a former mayor of Meycauayan City and three other officials some 20 years ago.
In an 18-page decision, the COA en banc affirmed the notices of disallowance and the liability of former Mayor Joan Alarilla, former treasurer Flora Martin, former assistant city treasurer Annabelle Urbano, and former cashier Ester Jimenez.
Records showed the COA’s Fraud Audit Office (FAO) ordered a special audit in December 2009 to review the alleged anomalous transactions of the Meycauayan officials from 2005 to 2008.
The special audit team verified that various checks the city government issued did not reach the intended payees but were instead deposited by second endorsement in several accounts opened with the Philippine Business Bank (PBB).
They found that two checks worth P1.3 million in supposed loan repayments to the Economic Support Fund Council (ESFC) went into a PBB account in 2007.
This was followed by 33 checks containing a combined value of P7.5 million declared as “missing” but which were traced to three different PBB accounts.
Twelve other checks deposited through second endorsements worth a total of P3.68 million were also deposited in three different PBB accounts, although the books showed they were intended for PagIBIG Fund, the Government Service Insurance System (GSIS), and four other payees.
Finally, eight forged checks worth P4.03 million supposedly paid to suppliers were diverted to the three PBB accounts.
While the COA upheld the audit findings against the LGU officers, it modified the ruling to clarify that the four are only liable for the sums they were found directly involved in.
“In view of the alleged fraudulent negotiation of the checks of Meycauayan City with PBB, Meycauayan City Branch, the case shall be referred to the Office of the Ombudsman for investigation and filing of appropriate charges, if warranted, against the persons liable for the transactions,” the commission said.
It said that from P15.22 million, Alarilla’s solidary liability is reduced to P5.86 million; Martin down to P13.434 million; Jimenez to just P3.54 million; and Urbano to P2.22 million.
The Commission ordered its Prosecution and Litigation Office to forward the records of the special audit to the Office of the Ombudsman.
