What is the allegation?
COA reports that, as of Dec. 31, 2014, the accumulated worth of unliquidated fund transfers of the DILG was P7.040 billion.
Because of this, VP Binay’s camp accused Mar of poor project monitoring and implementation as DILG Secretary.
What are we actually talking about?
The national gov’t allocated amounts to the DILG.
These amounts have not been audited because no reports have been given by the DILG concerning the P7 billion unliquidated fund transfers.
The barbed implication is that Mar as DILG Secretary is incompetent in managing the projects funded by the national gov’t.
What are the facts?
This amount of P7.040 billion can be divided into two groups: 83% and the balance.
The 83% (or P5.826 billion) refers to the accumulated amounts for financial year 2014.
The balance of 17% (P1.214 billion) refers to prior year balances ranging from 5 to 34 years.
It is primarily the 83% (P5.826 billion) that is in question here since Mar was DILG Secretary from Sept. 2012 to 2015.
What is the 83% about?
The accumulated amount of P5.826 billion are financial subsidies to the LGUs to implement 6,705 projects.
What projects did this 83% fund?
The projects can be enumerated as follows:
Bohol Earthquake Assistance (BEA) 1,079 projects),
Bottom up Budgeting (BUB – Water) (1,001 projects),
Bottom up Budgeting (BUB – Others) (89 projects),
Bottom up Budgeting (BUB – Local Access) (686 projects),
Sagana at Ligtas na Tubig Para sa Lahat (SALINTUBIG) (113 projects),
Payapa at Masaganang Pamayanan (PAMANA) (111 projects),
Recovery Assistance for Yolanda (RAY) (3,626 projects).
As of Dec. 31, 2015, out of these 6,705 projects implemented by the 83% fund in question (P5.826 billion):
2,083 are completed,
1,823 are on-going,
1,938 are under procurement process with approved program of work
637 projects are under preparation
Five (5) have been cancelled
What is the status of monitoring the 83%?
Of the P5.826 billion, P4.538 billion or 78% was released to the DILG in June of 2014.
To comply with regulations, it takes awhile to disburse this amount to the LGUs involved and have the same liquidated.
As of December 31, 2015, the accumulated balance has been reduced by P3.372 billion or 48%.
This is based on the submitted Reports of Disbursements by implementing agencies and LGUs.
Why is it taking so long?
The completion of the projects has an average timeline of 6 months to 1 year (except for water projects with an 18 months implementation period).
It has to be emphasized that the process of liquidation is a continuing activity.
Liquidation requires the submission of documentation of project implementation until all expenditures are fully accounted for.
Liquidation needs verification of the LGUs Resident Auditor. They need to inspect the projects as well as verify the reports of disbursements.
Is there wrongdoing?
No. In fact, people clearly get their taxes worth since the money trail is transparent.
As explained by Cong. Barry Gutierrez, the spokesperson of Daang Matuwid:
This is an old tactic of VP Binay: Cook up some story to deflect attention from him. I will repeat what I said: The funds have been downloaded to the LGUs and are no longer in the hands of DILG. Not everything has been liquidated because the projects being funded are not yet completed. DILG’s accounting for the transfer of funds to the LGUs is clean and transparent and easily verified. We now have this to say to VP Binay: Our answer to this issue is straight and to the point. We are still waiting for their direct answers to the numerous cases filed against them.