MWSS used P23M from Angat Dam project to pay another loan — COA
MANILA, Philippines – The Metropolitan Waterworks and Sewerage System (MWSS) has used the P23.75 million balance from an Angat Dam project to settle other obligations, the Commission on Audit (COA) said in its report.
COA’s report dated Thursday showed the balance from the Angat Dam and Dyke Strengthening Project (ADDSP) were used as additional funds to pay outstanding balances from the Bridge Financing Loan.
This was allegedly done without authorization and is considered a breach of MWSS’ memorandum of agreement (MOA) with the Department of Budget and Management (DBM), and Department of Public Works and Highways (DPWH).
“The remaining balance of the fund received for the implementation of the Angat Dam, and Dyke Strengthening Project (ADDSP) amounting to P23.750 million was used as payment of the guarantee fees payable due to non-segregation of the trust fund with the corporate funds,” COA said.
It added that MWSS’ decision goes against the Presidential Decree 1445, which says that trust funds “may be spent only for the specific purpose for which the trust was created or the funds received.
According to COA, the ADDSP is one of the MWSS projects aimed at rehabilitating Angat Dam to fortify its foundations and mitigate the capacity shortage. The funds, a total of P553.3 million, were supposedly provided by the Bureau of Treasury last April 2015.
Part of the ADDSP is the flood forecasting and warning system (P292.3 million) which was taken care of by the National Power Corporation (NPC); and the flood control protection on Angat’s downstream (P237.1 million), which was handed to the provincial government of Bulacan.
COA also found out that both government units have yet to submit their liquidation reports.
“Hence, to date, no reports were transmitted by the MWSS to the DPWH and DBM,” it said.
MWSS’ management was ordered to return the funds, submit the journal voucher, and create a separate bank account for trust funds given by the Bureau of Treasury. In its reply, MWSS told COA that the P23.75 million in question is back in the bank account for trust funds. (Editor: Eden Estopace)
