THE Commission on Audit has called on the local government of Tabaco City, Albay to speed up securing its ownership of 88 lots with a market value of P2.418 billion after finding out that they remain unregistered under its name.
In a 2023 audit report, the city government was warned of potential legal difficulties down the road if other entities should take interest in the untitled properties.
“Perusal of the Certification of Real Property Holdings from the City Assessor’s Office revealed that 88 lots owned by the City Government remained unsecured due to the absence of title of ownership,” auditors said.
Records obtained by the audit team showed the 88 lots were classified as residential (48), educational (20), commercial (13), industrial (3), agricultural (2), recreational (1), and others (1).
Based on its assessment, the residential lots were assigned a total market value of P942.98 million, the educational lots at P720.656 million, the commercial lots at P587.61 million, the industrial lots at P92.56 million, and the recreational lots at P69 million.
However, the total assessed value for the same 88 lots was pegged at P429.72 million.
“It was noted that several City structures were constructed on lots with unsecured titles of ownership, exposing the LGU to possible loss of rights over the constructed assets and claims by other interested parties,” state auditors said.
They reminded the city mayor that under COA Circular No. 92-386, responsibility for the proper titling and management of real estate properties of an LGU is assigned to the local chief executive, along with the job of safeguarding these land assets from illegal occupants and squatters.
In addition, the audit team found 76 other lots with a market value of P199.335 million that were not recorded in the city government’s books and not disclosed in its financial statements.
The said lots turned up after a comparison of the Certification of Real Property Holdings from the Assessor’s Office and the inventory of lots from the Accounting Office.
Auditors cautioned the Tabaco City government that it is required under the International Accounting Standards to disclose information about the said lands and their status for transparency and completeness of presentation in the financial statements.
They pointed out that in prior years’ audits, the attention of the city government had already been called out over the same issue.
“We reiterated our prior years’ audit recommendation that the Local Chief Executive designate a personnel/team for securing the land titles of the 88 lots and likewise appropriate funds to cover its cost,” the audit team added.
In its reply to the audit findings, the city management said it is already working on the review of land titling over the identified 88 lots.
On the unrecorded properties, it said the number used to be 589 but has been reduced to 76 because of ongoing efforts to reconcile the balances of the Accounting Office.
It said many of the properties were donated to the city government and the transfer of title is now being processed.
