OZAMIZ CITY, Philippines—The Commission on Audit (COA) said it found “grave irregularities” in the financial transactions of the city government.
But Mayor Nova Princess Echaves downplayed the report and maintained she and her officials have not done anything unlawful.
In a report submitted on Wednesday last week, which reporters obtained on Monday, Laura May Ozaraga, head of the special audit team formed by the COA in Northern Mindanao, said among the anomalies they uncovered was the failure of the city government to remit proceeds from real property taxes and community tax certificates to the city’s 51 barangays from July to September 2010.
The funds amounted to about P40 million.
The COA report said this constituted violation of the provisions of Republic Act No. 7160 or the Local Government Code of 1991.
The COA team also said it found the city government suffered cash overdrafts of P182 million from June to September last year.
At least P8 million in premiums for employees’ insurance coverage were also unremitted.
The COA team said the city government’s expenses on wages was bloated to P66 million. The approved allotments, it said, was only P29.4 million.
The COA team said it further discovered that wages for June, July and September 2010—totaling P13.4 million—were paid without documentation.
Echaves said the perceived anomaly stemmed from procedural lapses.
She also cited the supposed difference in the auditing procedures used by the city’s accounting office and that of the special audit team.
Echaves said no money was lost and that it can be proven.