The Commission on Audit (COA) directed the Department of the Interior and Local Government (DILG) to explain why it was unable to fully utilize the P3.618-billion COVID-19 funds it got under the Bayanihan laws and leaving P447.629 million unobligated.
State auditors said the “bulk of the unutilized fund came from the Bayanihan to Recover as One Act,” in which the DILG got P3.511 billion. Under the earlier Bayanihan to Heal as One Act, the DILG got a P106.8-million budget for its COVID-19 response.
But the DILG central office and six regional offices were only able to use 61 percent to 73 percent of the funds.
“Based on the accomplishment report submitted by the DILG, initial target of at least 50,000 contact tracers was attained as they have hired a total of 50,885 all throughout the country. However, allotment released for the said act was not only intended for hiring of contact tracers but also for other related expenses, such as monitoring, training, logistics and operational expenses,” the audit report noted.
It added: “There were funds allocated for procurement of equipment, supplies and materials and other operational expenses amounting to P134.413 million, which were not fully utilized at yearend. Hence, the intended purpose of the fund was not achieved.”
Last year, the DILG received a total of P 3.618 billion in COVID-19 funds under the Bayanihan to Heal as One Act and the Bayanihan to Recover as One Act, both which already expired.
Of the P 3.618 billion, only P2.948 billion or 81.4 percent was actually disbursed as of the end of 2020, while the unobligated allotment is at P 447.629 million or 12.37 percent.
Under the P106.8-million budget from the Bayanihan 1 law, the DILG central office received P10 billion while 16 other regional offices, including the DILG National Capital Region office, received P6.05 billion each. But the DILG central office only utilized 61.82 percent, or P6.182 billion, of its P10-billion allocation.
Six other regional offices registered similar low utilization rates ranging from 60.07 percent for the DILG Bicol region office to 73.84 percent for the DILG Davao region office.
“Further analysis of fund utilization revealed that the central office and three regional offices have not utilized funds allocated for the purchase of equipment and drugs and medicines,” the audit report stated.
These are the DILG regional offices in the Cordillera Administrative Region, Bicol Region, Davao Region, which registered a zero-percent utilization rate for funds meant for drugs, medicines, and generator sets.