By: Ben R. Rosario
The Commission on Audit has recommended the conduct of criminal investigation on former and incumbent officials of the Department of Budget and Management and other government agencies after State auditors found serious irregularities in the release of P38.807 billion in Malampaya funds from 2004 to 2012.
In the Sectoral Performance Audit of the Malampaya Fund released recently, CoA Director Eisielin Msangcay disclosed they found irregularities in the orders issued by the DBM on the release of some R36.288 billion in funds exclusively intended for energy resource development and exploitation programs and projects of the government.
“In view of the apparent disregard of applicable laws, rules, and regulations which contributed to the misuse of funds…the (audit) team recommends immediate conduct of investigation to determine officials and employees who may be responsible for the questionable release of funds and file appropriate charges, if warranted,” the CoA said.
The special audit was conducted by Overall Team Leader Grace T. de Castro, co-team leaders Ma. Luisa P. Gutay, Michelle V. Ceras, and Ray Christopher L. Pio Roda, and team member Pater Jigo V. Boado.
“SAROs (Special Allotment Release Orders) and NCAs (Notices of Cash Allocations) were released without complying with complete documentary requirements under the existing laws, rules, and regulations,” the auditors said in the SPA report.
The CoA noted that SAROs were released by the DBM without first “establishing the propriety of the projects to be funded and reasonableness of the amount being requested.”
“The absence of such requirements contributed to the irregular disbursement of funds,” the audit agency stated.
The audited funds covered 184 SAROs by the DBM totaling P36.288 billion as of May 21, 2012 to different implementing agencies.
Excluded in the audit is the P2.572-billion Malampaya funds intended for the implementation of projects in Palawan. This expenditure has been covered by the Fraud Audit Office.
Reacting to the audit findings, former DBM Secretary and now Camarines Sur Rep. Rolando G. Andaya Jr. said that during his term, he was “very confident about the professionalism and expertise of his subordinates” and that all request for funds have been “scrutinized and endorsed for his approval by his subordinates,” particularly the Budget Operations Office.