Saturday, October 6, 2012

COA Audit finds Philippines lost $2.46 billion to anomalies

Audit finds Philippines lost $2.46 billion to anomalies

State auditors say the Philippines lost $2.46 billion through misuse of
state funds and assets during the latter years of Arroyo's rule. (AP)

AGENCE FRANCE PRESSE

Saturday 6 October 2012

Last Update 6 October 2012 2:19 pm

MANILA: The Philippines lost $2.46 billion through misuse of state funds
and assets during the latter years of graft-tainted ex-president Gloria
Arroyo's rule, government auditors said Saturday.

The Commission on Audit highlighted anomalies that mostly occurred in
the 2007-2009 period in its investigation of government agencies last year.

"Most audit findings categorically indicate pecuniary loss on the part
of the government, as a result of violations of law, rules and
regulations," said the report, first posted on its website Saturday.

More than 4,000 cases of unauthorized expenses, unaccounted for cash
advances, uncollected duties, fictitious claims, missing assets, or
abandoned projects, cost the government 101.82 billion pesos ($2.46
billion), it said.

The total is equivalent to 5.6 percent of the country's budget this year.

Its conditional cash transfer program, where poor families get monthly
stipends in exchange for keeping their children in school, could not
account for 3.77 billion pesos.

Two state banks lent large sums unsecured by hard collateral, while
Manila airport left 21 abandoned aircraft parked in an area exposed to
natural elements, leading to their deterioration, despite being given
funding to house them.

Among the biggest items were 1.862 billion pesos in cash advances to two
government treasurers in the impoverished province of Maguindanao and
1.123 billion pesos in payments to "spurious" suppliers to a Muslim
self-rule area.

Chief state auditor Grace Tan said in a letter sent to Manila newspapers
Saturday that the audit covered items mostly relating to accounts prior
to 2010, when Aquino was elected to office on an anti-corruption platform.

"Pecuniary loss does not necessarily result from graft, and it is only
the courts that can make judgment of graft," Tan said.
Aquino has asked a special anti-graft prosecutor to file criminal
charges against people deemed responsible for 744 of the cases, the
auditors said.

The other cases are under investigation.

Arroyo was arrested and detained at a military hospital in Manila on
Thursday after allegedly using diverting 366 million pesos in state
lottery funds meant for charity programs into her election campaign kitty.

After being president for nearly 10 years, Arroyo was initially charged
in November last year with vote fraud for allegedly conspiring to rig
the 2007 senatorial elections, but later posted bail.

Her spokesmen did not reply to AFP's requests for comment.

Aquino spokeswoman Abigail Valte told reporters Saturday: "We have not
become complacent in our anti-corruption measures."

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