TEN years after the Supreme Court struck down the congressional pork barrel system for being unconstitutional, the provincial government of Negros Oriental has yet to account for P4.79 million in Priority Development Assistance Funds (PDAF) transferred to it by legislators.
The 2023 audit report of the province, which was released on January 20, 2025, showed that the sum remains outstanding as of December 31, 2023 due to non-submission of the liquidation report which precluded the audit team from assessing the validity and propriety of fund utilization.
According to records of the PDAF allocation, P1 million was earmarked for a livelihood program in the First Legislative District, P1.5 million for the water system improvement of Bais City, P1 million for “priority pro-poor programs,” P700,000 for “special projects pro-poor programs,” P500,000 for purchase of IT equipment, and P87,050 as financial assistance to a non-government organization (NGO).
But paper trail of the fund releases led auditors to a discovery that only the P1.5 million went to the Bais City Water District on January 29, 2013 as intended, while the rest of the money totaling P3.287 million went to the NGO, Negros Oriental Business Development Foundation (NOBDF) in five separate tranches all dated December 29, 2011.
As the project implementing partner of the provincial government, the NOBDF was supposed to submit the liquidation of the cash it received as well as the physical accomplishment status reports.
On November 19, 2023, the Supreme Court issued a decision declaring that the appropriations for the PDAF in 2013 and prior years were unconstitutional.
The High Court likewise ordered all remaining unused PDAF fund transfers to be returned to the Bureau of Treasury.
“However, the aforementioned funds transferred before the Supreme Court’s decision remained unliquidated which precluded the determination of the validity and propriety of the disbursements,” the audit team said.
The COA had issued an audit observation memorandum dated February 26, 2024 to the provincial government invoking the SC ruling, with a reminder that “any subsequent disbursements cannot have any legal and valid effect.”
The province agreed to revisit the memorandum of agreement with the NGO and the water district to determine the whereabouts of the cash grants and institute action against the NGO for defaulting on the liquidation.
