LWUA ad too expensive, says COA

MANILA, Philippines—It may be peanuts for the Local Water Utilities Administration, but the P2 million the government agency spent to advertise its accomplishments in leading newspapers in early 2010 was extravagant, the Commission on Audit said.

To mark its anniversary in February 2010, LWUA ran an accomplishment report in leading newspapers at a cost of P1.194 million, and a special cover feature in the Philippine Free Press for P250,000, and sponsored the production and airing of the Philippine Women’s Basketball League on Solar Basketball TV for P500,000.

The newspaper and TV advertisements were unnecessary “as the nature of LWUA’s mission would not warrant such expenses,” the COA said in its 2010 audit report.

State auditors recommended that LWUA strictly adhere to COA Circular 85-55A, which states that advertisements of anniversaries merely for publicity are unnecessary except when they promote trade or business.

“LWUA should monitor and control Public Information Expenses to be incurred in order to minimize, if not prevent, wasteful, excessive and unnecessary expenses,” they said.

LWUA managers had explained that the newspaper advertisements were meant to highlight the agency’s vital role in the water supply sector, while the sponsorship of PWBL on TV was in support of the government program for youth, sports and physical fitness development.

Created in 1973, the LWUA is a specialized lending institution to promote, develop and finance local water utilities.

In the same report, COA said that the agency continued to grant executive checkup and hospitalization to its board of trustees, officials and employees in the amount of P4.9 million in 2010 even though this had been disapproved by the Department of Budget and Management.

In its 2010 budget, the DBM disapproved LWUA’s P2.8-million budget for executive check-up for lack of legal basis. Despite this, the agency continued to grant reimbursements for hospital medical expenses amounting to P4,912,858.77.

COA said this should be discontinued unless LWUA secured an approval from the DBM.

According to COA, some 35 units of water quality monitoring equipment worth P38 million were not used by water districts.