The Commission on Audit (COA) has questioned the Taguig City government about how it spent P144.66 million in community development funds, particularly on two projects worth P76.66 million that did not meet program objectives.
“The projects/programs funded under the 20 percent development fund of the city government for the year 2011 amounting to P144.660 million were not implemented, thus attainment of desirable socio-economic developments and environmental management projects were not pursued,” COA said in its 2011 audit report.
It said the city government headed by Mayor Maria Laarni Cayetano failed to deliver on social and environment objectives set under 2005 Joint Memorandum Circular No. 1 between the Department of Interior and Local Government and the Department of Budget and Management.
COA pointed out two projects worth P76.66 million that included the carpet titling and settlement of boundary jurisdiction with a budget of P2 million; peace and order program with an allocation of P3.5 million (for mobile patrol and anti-illegal drugs campaign); a separate peace and order program worth P9.16 million (for fire and police stations) and P13 million (for purchase of vehicles); and a landbanking proposal to be bankrolled with P50 million.
The two projects were intended for landbanking and peace and order program, although capital expenditures in nature, did not fall in any of the categories provided in the guidelines, COA said.
The city government said the the projects were “in furtherance of socio-economic development” and that the DBM has already approved the proposed programs.
Under the joint memorandum circular, all projects should be in the nature of investment and capital expenditure.
Paragraph 4 of the memorandum circular says full responsibility was placed on the local chief executive to ascertain “that the 20 percent of the IRA is optimally utilized to help achieve socio-economic development and environmental outcomes.”