COA report misleading, says peace adviser’s office

THE OFFICE of the Presidential Adviser on the Peace Process (OPAPP) described as “misleading” a Commission on Audit report which questioned the agency’s use of over P45.3 million for car rentals in 2014, allegedly without the necessary authorization and with dubious supporting documents.

Undersecretary Luisito Montalbo, OPAPP executive director, Tuesday defended the car rental expenses, saying what was important was the recommendation of the COA which was to “secure the approval of the Department of Budget and Management (DBM) for the vehicle rentals.”

“This we have complied with and received DBM approval (on Sept. 15, 2015),” he disclosed.

Montalbo also pointed out that COA did not disallow the car rentals, noting Office of the President-attached agencies are allowed to “merely rent and not purchase vehicles outright for their operational use.”

“The (COA) report was intended to strengthen and tighten (OPAPP) procedures,” not to assail the agency,” he added.

In 2014, the OPAPP reportedly leased 294 vehicles, 89 of which were rented on a monthly basis. Another 205 vehicles were rented on a “per activity” arrangement.

The rented vehicles were on top of the 56 units the agency owns, according to the COA.

The audit body reported that the number of rented vehicles “exceeded what is usual or proper,” citing a COA circular, called Guidelines for the Prevention and Disallowance of Irregular, Unnecessary, Excessive and Extravagant Expenditures.

“The numerous vehicles utilized by the OPAPP on its day-to-day operations could be regarded as unconscionable and excessive under COA Circular 2012-003. We recommend that the management explain and justify the necessity of renting the said 294 vehicles,” said the COA report.

Based on the agency’s approved 2014 budget, only P7.97 million was set aside by the DBM for its rental of motor vehicles.

However, the OPAPP’s car rental expenses exceeded its budget allocation by over P37 million, or 469 percent for such services.

The COA added that they “verified compliance of OPAPP to the requirements and found that 89 vehicles rented on a monthly basis in 2014 were not covered by an authority from the DBM.”