PH gov’t at a disadvantage in BuCor’s deal with Tadeco — COA

(Editor’s note: We are reposting this story to correct that the COA report mentioned in this story was released early in August and not on Thursday, Aug. 30, 2018.)

The Commission on Audit (COA) has claimed that the deal between the Bureau of Corrections (BuCor) and the Tagum Agricultural Developmental Co. Inc. (Tadeco) was “disadvantageous” for the Philippine government.

According to an audit report released earlier last month, when BuCor leased part of the Davao Prison and Penal Farms to Tadeco, a banana plantation company, for merely P50,000 per hectare, the government lost P460 million in possible revenues.

“The annual guaranteed income, including the profit share as consideration for the use of the reserved land for the BuCor, is grossly disadvantageous to the government considering the prevailing rental rate of P50,000.00 per hectare in the locality, or a revenue loss for the government of P460,181,652.00,” COA said.

COA recommended that BuCor should meet with Tadeco to discuss a raise in the agreed profit share.

“We recommended that management make representation with Tadeco for the increase in the guaranteed income and profit share in order not to cause more losses to the government,” the commission added.

The findings also revealed that there was a discrepancy in the total reported volume of bananas from the total actual volume of exported bananas.

“The total volume of bananas exported to various countries by Tadeco differ from the actual volume of bananas reported in the monthly production report submitted to BuCor,” COA noted.

“(This) resulted in the under-remittance of the profit share by Tadeco totaling P5,826,567.01,” it added.

Other BuCor problems

Aside from these two issues, there were 32 other items listed under the observations and recommendations part of BuCor’s audit report.

Some issues that were marked “unreliable” by COA due to discrepancies in the accounts involve wrong inputs on the annual profit share with Tadeco, account balances from non-government agencies, reported balances of inventory accounts, and cost of catering services for BuCor’s various activities.

The issue of jail congestion, specifically of the Leyte Regional Prison, was also tackled.  BuCor was called out for not adhering to the laws and standards set by the United Nations.

“The total jail population of 1,787 as of December 31, 2017 in BuCor-Leyte Regional Prison (LRP) exceeded by 1,243.25 on the total ideal population of 543.75 into a habitable area of 2,555.64 sq.m. or a total average congestion occupancy rate of 228.64 percent,” COA said.

“Thus, the agency did not conform with the Revised IRR (Implementing Rules and Regulations) of RA No. 10575 and the United Nations Minimum Standard Rules for the Treatment of Persons Deprived of Liberty, resulting in unhealthy living conditions of the inmates caused by heavy congestion,” they added. /je/au