COA to City Hall: Recover Embezzled Funds

The Commission on Audit (COA) has advised the Cebu City officials to initiate legal moves against those persons who were already convicted by the court for embezzling the city’s funds so that the amount involved can be recovered by forfeiting the property in favor of the government.

COA said the city officials are “lax” in protecting the people’s money that is why the amount of shortages from the accountable officers still remain at P42.3 million as of last December 31.

Some former disbursing officers of Cebu City had been convicted already by the court for malversation of public funds, but COA said the city should initiate further moves to recover the money.

During the stint of then mayor Alvin Garcia, disbursing officer Rosalina Badana was able to malverse P18 million
while Cleofe Delute also pocketed close to P10 million. Only Delute has been convicted while Badana remains at large.

Collection shortage

The agency’s records show that some of the tax collectors shortages started way back in the early 2000 until November 30, 2013. The state auditors interviewed the administrative officer of the City Treasurer’s Office and found out that despite the infractions committed by the accountable officers, there was no sanctions imposed against them and they are still allowed to collect taxes due to the lack of collectors.

“Some tax collectors habitually under-remitted their collections and continue doing so in the absence of sanctions,” the COA report said.

City Treasurer Diwa Cuevas confirmed that when she assumed into her position last year there were some tax collectors who failed to remit the whole amount of their collections.

She said she presently required collectors to submit their collections intact.

“Dili ko mosugot nga mo-remit sila og kuwang,” Cuevas said.

It was also learned that City government officials still issued clearances to retired employees even if they had outstanding cash shortages. The city also failed to deduct the amount from their benefits, COA said.

“The process flow clearly indicates a breakdown of internal control for cash are not amply safeguarded from physical loss through possible fraud and embezzelment,” said the state auditors.

COA added that the continued inaction of the concerned officers to establish written policies and sanctions to
refrain collectors from under-remittance had deprived the city government the immediate use of such fund for priority projects.

Image Credit: newsinfo.inquirer.net