Candidates may heave a sigh of relief for now as the Commission on Audit (COA) is suspending until after the May elections new investigations of those linked to irregularities to “uphold its political neutrality.”
COA Resolution No. 2018-031, dated Oct. 2 and released to reporters only on Wednesday, states that the agency will “desist from the creation of teams for and the conduct of fraud/special audit based on complaints and/or requests against all candidates in the 2019 national and local elections.”
The suspension of fraud inquiries will take effect for seven months from Oct. 11 to May 13 next year, the day of the midterm elections.
The resolution was signed by COA Chair Michael Aguinaldo and Commissioners Jose Fabia and Roland Pondoc.
But initial assessment or evaluation of audit requests will not be suspended. Audits that had been started before the involved persons filed their candidacies would proceed.
Corruption complaints
Fraud audits refer to investigations of the economic and financial misconduct or abuse of public funds and functions.
These are usually prompted by corruption complaints from individuals — even anonymous ones — as well as requests by investigative agencies like the Office of the Ombudsman.
On the other hand, special audits cover controversies on a government-wide basis, such as the misuse of the Priority Development Assistance Fund and the Malampaya Fund.
Audit findings sometimes form the basis for criminal and administrative liabilities against public officials and their private conspirators.
According to the resolution, the COA “shall in no way curtail or impair the regular functions of the offices, auditing units and audit teams of the commission, not otherwise affected by it.”
This means the agency will still be business as usual for the regularly released annual audit reports, which evaluate government entities’ compliance with the law, efficiency in performance or accuracy in financial reporting.
Voluminous complaints
During election season, the COA said it usually “receives voluminous complaints and/requests for special/fraud audit against candidates in the national and local elections, including nominees of party-list groups.”
To insulate its auditors from politics, the agency said it would implement “measures aimed at preventing opportunities and circumstances that may impair the independence, neutrality and professionalism of the commission, its officers and employees.”
The COA is no stranger to controversy.
In September, President Rodrigo Duterte expressed disdain at accountability measures being imposed by the COA to curb wasteful and improper spending during times of disaster. He dismissed the agency’s powers and ridiculed its regulations as just a “shit of a circular.”
Laoag City rant
At the goading of Ilocos Norte Gov. Imee Marcos, the President, who was then in Laoag City in the aftermath of Typhoon “Ompong” (international name: Mangkhut), said COA employees should be “pushed down the stairs.”
His rant came after Marcos, eldest child of late dictator Ferdinand Marcos, complained about the P15,000 limit being imposed by the COA on requests for cash advances to buy food.
Taking Marcos’ side, the President said: “Who’s from the COA here? Push him down the stairs so he won’t report anymore.”
“Why believe in that COA? You know, you just do it by circular and they expect everybody to obey. Circulars—what care do I have?” he said.
Marcos clapped, saying: “Yes, yes, yes!”
Irregularities in Ilocos
The COA has attested to the irregularities of the Ilocos Norte government’s misuse of cash advances from tobacco tax proceeds to purchase vehicles and fund other contracts not related to improving the plight of farmers.
Its findings also led to controversies casting doubt on the Duterte administration’s anticorruption efforts.
Tourism Secretary Wanda Tulfo-Teo resigned after the COA reported that her department had bought advertising time on a low-rated television program produced by her brother.
Amid the President’s criticism of the COA, Malacañang said it was studying possible reforms on procurement processes in government.