Water agency spent P30M on flowers, wines
The Local Water Utilities Administration (LWUA) overspent on miscellaneous expenses and extraordinary miscellaneous expenses by nearly P30 million in 2010, with part of the money being used to pay for flower arrangements, expensive gift items, alcohol and wines, among others.
The LWUA’s approved budget for these expenses was just a little under P1 million, according to the Commission on Audit (COA).
The LWUA also went way over its approved budget in spending for personnel benefits and allowances—some of which had been disallowed—overspending by P318 million on these, the COA said in its latest report on the agency.
But the LWUA contested the disallowances of the benefits and allowances, saying it could not see in what way it had acted without legal basis.
Miscellaneous expenses
In its report, the COA said the approved LWUA budget for extraordinary miscellaneous expenses was only P554,000, and P432,000 for miscellaneous expenses.
However, the LWUA spent way over these amounts. It spent P26.1 million for extraordinary miscellaneous expenses, and P4.8 million for miscellaneous items, or an excess of P29.9 million.
The COA found that funds were spent to reimburse receipts for expensive gift items, flower arrangements and other similar expenses, which it said “may be considered questionable unless properly justified.”
Also among the miscellaneous expenses were payments for wine and other alcoholic beverages, “which are considered excessive and extravagant expenditures.”
Unsupported by receipts
The LWUA also reimbursed from the miscellaneous funds receipts from KTV bars and paid for meals during weekends and holidays, phone bills, hotel accommodations, office and computer supplies, wind breakers, check booklets, Balikbayan magazines and honorarium for the valuation of LWUA-owned artworks.
Meanwhile, another P26 million in emergency miscellaneous expenses were unsupported by receipts or documents to show that they were properly disbursed, according to the COA.
The audit agency said the LWUA had submitted mere certifications attesting to the fact that money was spent for such items, contrary to a COA rule against certifications as these tend to be self-serving.
It said the LWUA should stay within the approved budget and follow the rules on reimbursing claims by requiring the submission of proper documents.
In response, the LWUA insisted that certifications are acceptable since they fall under “documents evidencing disbursements,” and that the COA circular had failed to specifically state that certifications were no longer acceptable to support claims.
As for the miscellaneous expenses, the COA said the LWUA management took note of the audit agency’s recommendations.
The COA also said the LWUA spent P318.9 million more on personal services than what the Department of Budget and Management (DBM) had approved.
The excess amounts were spent on 13th-month pay and other bonuses, meal allowances, cost of living allowances, amelioration allowances, medical benefits, clothing allowances, representation and transportation allowances, honoraria and salaries and wages.
The COA noted that the DBM had only approved P268.481 million for LWUA’s personal services, even though the latter had proposed a budget of P748.027 million. But the LWUA spent P587.4 million on personal services in 2010.
It noted that the DBM disallowed for lack of basis the benefits and allowances granted to LWUA officers and employees.
Approved by board
In its answer, the LWUA said the National Water Crisis Act recognized the principle of nondiminution of pay and benefits of its personnel.
It also contended that the disallowance ran counter to the National Water Crisis Act and the intention of the law to protect LWUA employees.
It said the allowances were also authorized under a board resolution, which was based on legal grounds and was not whimsical.
