THE COMMISSION on Audit (CoA) has asked the Local Water Utilities Administration (LWUA) to return more than P53 million in unused subsidies to the national Treasury.
In its 2022 audit report posted on its website on June 28, state auditors said the unused subsidy funds from the National Government for 2009 to 2017 worth P140.66 million for projects that have been completed or yet to start had not been returned to the Bureau of Treasury (BTr).
State auditors cited a 1994 circular mandating agencies to return any unused balance once a project is completed.
LWUA officer-in-charge Eileen L. dela Vega did not immediately reply to a text message seeking comment.
In its reply to CoA, the LWUA management said it had conducted “further verification [and] established that only P53.17 million out of P140.66 million will be returned to the BTr.”
The management said the unused balance of P87.49 million “will be subject to initial validation with the water districts’ recipients regarding the actual project implementation.”
CoA said “no status of implementation or report is available to determine if the funds are still needed for other related projects.” It urged the LWUA to fast-track the validation of the unused balance.
LWUA had unsettled audit disallowances worth P1.46 billion and audit suspensions worth P1.38 billion, CoA said.
The LWUA was created under Presidential Decree 198 in 1973 to finance and oversee the development of water supply systems in cities and municipalities outside the capital region.
Meanwhile, the Philippine Ports Authority (PPA) said it would heed CoA’s call to avoid buying unnecessary items under its infrastructure projects.
“The PPA fully supports the newly released annual report for the agency’s fiscal transactions in 2022,” it said in a statement on Thursday.
In a 2023 audit report, state auditors flagged the port agency for buying unnecessary items worth P18.48 million under its infrastructure projects, including office equipment, furniture, computers, software and high-end models and brands of electronic gadgets.
The PPA said it “immediately followed CoA’s recommendation to discontinue the inclusion and provision of reimbursable items” in its dredging and infrastructure contracts.
The management has been changing its policies on reimbursable project items “to align with good governance practices,” according to the statement.
CoA said buying high-end or expensive models of electronic gadgets is unnecessary unless justified, citing an October 2012 circular.
The PPA is a government-owned and -controlled corporation under the Department of Transportation mandated to build, maintain and operate ports nationwide. — Beatriz Marie D. Cruz