Solon on COA report: Corruption in Arroyo admin 'systemic'

(Updated 5:54 p.m.) A militant lawmaker expressed outrage over the Commission on Audit (COA) findings that the Office of the President failed to account for questionable expenses last year, saying this was more proof of the "systemic" and "operationalized" corruption in the Arroyo administration. In a statement, Anakpawis Rep. Crispin Beltran said the COA report showed that Mrs Arroyo "severely failed" to keep her own office bereft of corruption. "We have firm grounds to assert that this failure also extends to her administration of the rest of the country and the economy," said Beltran. The lawmaker had previously claimed that he was offered a P2 million bribe to support an alleged "weak" impeachment complaint against President Arroyo. He accused Francis Ver, former deputy secretary general of the administration's Kabalikat ng Malayang Pilipino (Kampi), of dangling the bribe. "There's a theme and pattern emerging in how Malacañang utilized its funds and the funds that came under its supervision for distribution to various charities," Beltran said. Beltran also brushed aside the explanation of Sergio Apostol, chief presidential legal counsel, that it "is normal" for government agencies to incur unliquidated cash advances. "Malacañang and its spin doctors cannot make excuses for the damning conclusions of the COA by citing shoddy bookkeeping or absent-minded record handling," Beltran said. Government auditors said Section 80 of Presidential Decree 1445 required the liquidation of cash advances "as soon as the purpose for which it was given has been served." For his part, Sen. Manuel "Mar" Roxas II warned that mistrust for administration will "remain" should President Arroyo and her officials fail to account for the funds. "If the Palace had all the good intentions in using these funds, it should not hesitate to publish regular reports of the President's direct social interventions, including the reasons and the beneficiaries thereof," Roxas said in a statement. He added that, "The seeming cloak of secrecy raises suspicions of slush money being paid out in the guise of humanitarian spending." The 60-page COA report was submitted to Executive Secretary Eduardo Ermita on June 25, 2007. The commission rendered "a qualified opinion on the fairness of the financial statements" and listed 10 adverse "observations and recommendations." • Failed to settle cash advances worth P615 million made to officers and employees, local government units and government corporations; • Granted P269 million in loans out of the President’s Social Fund “without supporting documents and disbursement vouchers;" • Diverted P8.8 million in donations for calamity areas, including P900,000 to spruce up the Malacanang Golf Course, P3 million for hotel and conference expenses, and P4 million as "donation" to an unnamed foundation; • "Improperly recorded" P112 million in fund transfers to local government units, government corporations and nongovernmental organizations; • "Erroneously recorded in the books of the Office of the President" the P48.9 million balance of a trust account under the name "President's Social Fund-Livelihood Assistance Program" deposited with the Land Bank of the Philippines; • Failed to reconcile booked and physical inventory office supplies, property, plant and equipment, worth P70 million in all; • Understated the accumulated depreciation and depreciation expense accounts of property, plant and equipment worth P950 million. Lawyer Susan Vargas, Malacanang's deputy executive secretary for administration and finance; and Teresita Valdellon, department chief accountant, earlier certified that "the financial statements have been prepared in conformity with generally accepted state accounting principles and reflect amounts that are based on best estimates and informed judgment of management with an appropriate consideration to materiality." The COA also said the Office of the President failed to liquidate over P600 million more in cash advances since 2004. It also said P8.8 million in donations for calamity victims could not be "identified" with the money's intended purpose. - GMANews.TV