MANILA, Philippines–State auditors have smelled something funny in Manila’s trash collection contracts.
The Commission on Audit (COA) has questioned the “correctness” of the Manila City government’s payment of nearly P512.6 million for garbage collection in 2013 due to “inadequate documents.”
In its annual audit report, the COA also reminded Mayor Joseph Estrada to strictly comply with the rules on spending the city’s Special Education Fund after it found out that P238.6 million of the funds intended for sports activities went to “ineligible expenses.”
The state auditors also found out that the budget of the city government for its workers’ salaries was P1.248 billion more than what was allowed under the Local Government Code.
Its actual expenses for personal services were also P661.34 million over the approved limit.
“We have recommended that the appropriation and the actual expenses for personal services of the city should not exceed the limitation of 45 percent of the total annual income from regular sources realized by the city in the next preceding fiscal year,” the COA said.
The audit findings on Manila’s financial transactions were included in the 918-page audit report covering the provinces, cities, municipalities and villages councils nationwide.
State auditors noted the “absence of criteria/standard in evaluating the performance of the contractor” which won the garbage contract.
“The correctness of the total payments made by the city for garbage collection and disposal… could not be established due to inadequate documents showing that the contractor complied with all the undertakings provided [under] the contract,” the COA said.
It urged the city government’s Department of Public Service to present the pertinent documents “proving the contractor’s full compliance with their undertakings as provided in the contract and the documents required by COA Circular No. 2012-001.”
Sought for comment, Diego Cagahastian, chief of the Manila City Development Information Services, promised that the city government would act on the COA report once it receives a copy.
“Edward Serapio, who is a member of the city’s financial committee, said that he has not yet seen the report. He will issue the appropriate response after he has read [it],” Cagahastian said.
City Treasurer Liberty Toledo, meanwhile, vowed to respond to the COA report and issue recommendations later this week. “As a general policy, we comply with the recommendations of COA,” she said in a text message.–With Nathaniel R. Melican