MANILA, Philippines—Spending P2 million to advertise its accomplishments in leading newspapers in early 2010 was “extravagant,” the Commission on Audit (COA) told the Local Water Utilities Administration (LWUA).
State auditors also noted that LWUA’s almost P5 million expense on medical check-ups and hospitalization for its executives was unauthorized, while P38 million was spent on water quality monitoring equipment that was unused.
To mark its anniversary in February 2010, LWUA ran an accomplishment report in leading newspapers at a cost of P1.194 million, and a special cover feature in the Philippines Free Press for P250,000, and sponsored the production and airing of the Philippine Women’s Basketball League (PWBL) on Solar Basketball TV for P500,000.
The newspaper and TV advertisements were unnecessary “as the nature of LWUA’s mission would not warrant such expenses,” the COA said in its 2010 audit report.
State auditors recommended that LWUA strictly adhere to COA Circular 85-55A, which states that advertisements of anniversaries merely for publicity are unnecessary except when they promote trade or business.
“LWUA should monitor and control Public Information Expenses to be incurred in order to minimize, if not prevent, wasteful, excessive and unnecessary expenses,” they said.
LWUA managers had explained that newspaper advertisements were meant to highlight the agency’s vital role in the water supply sector, while the sponsorship of PWBL on TV was in support of the government program for youth, sports and physical fitness development.
Created in 1973, the LWUA is a specialized lending institution to promote, develop and finance local water utilities.
In the same report, COA questioned why the agency continued to grant executive check-up and hospitalization to its board of trustees, officials and employees in the amount of P4.9 million in 2010 even though this had been disapproved by the Department of Budget and Management (DBM).
In its 2010 budget, the DBM disapproved LWUA’s P2.8-million budget for executive check-ups for lack of legal basis. Despite this, the agency has continued to grant reimbursements for hospital medical expenses amounting to P4,912,858.77.
COA said this should be discontinued unless LWUA secured approval from the DBM.
COA also noted that some 35 units of water quality monitoring equipment worth P38 million were not used by water districts.