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CoA flags DND’s long-standing unliquidated project funds

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PHILSTAR

THE Commission on Audit (CoA) said the Department of National Defense (DND) has failed to implement various projects which has been pending for three to 11 years and failed to return the funds associated with the projects, incurring long-running payables to other agencies.

According to CoA 2018 report, the failure of DND to return or liquidate the funds for projects that were not implemented is a violation of a memorandum of agreement and Circular No. 94-013.

“Circular 94-013 dated Dec. 13, 2018 prescribes the rules and regulations in the grant, utilization and liquidation of funds transferred to implementing agencies. Paragraph 4.9 rules that the Implementing Agency shall return to the Source Agency any unused balance upon completion of the project,” CoA said.

CoA said funds received by DND from various agencies for the implementation of various projects amounted to P925.8 million.

Of this total, P80.6 million or 8.71% was transferred to the Armed Forces of the Philippines (AFP) for the implementation. Only P151.5 million or 16.37% was liquidated leaving a balance of P774.3 million.

“In the audit, of the P774,310,672.57 total balance, P19,812,293.14 or 2.56% represent balance of funds received from the Office of the President totaling P6,912,293.14 and from the Department of Environment and Natural Resources amounting to P12,900,000 aged from three to 11 years in violation of the MoA and Paragraphs 4.6 and 4.9 of COA Circular No. 94-013 dated Dec. 13, 1994,” CoA said. — Vince Angelo C. Ferreras