Lugi ang City Government
COA findings sa operasyon ng
Unang Serye ng Kabuuang Sampung Serye
May kasamang pananaw ni Dodie C. Banzuela
Simple lamang ang batayan ng mga nagpapautang: Kakayanang mabayaran ang uutangin. Sa lokal na pamahalaan, kalimitang “nakasanla” sa uutangan ang “kita” sa internal revenue allotment (IRA) at ang anumang kita ng pamahalaan mula naman sa kung anu-anong lokal na buwis.
Malaking bahagi din ng kita ng lokal ng pamahalaan ay nagmumula naman sa operasyon ng 
public market.
Sa kabatiran ng publiko, minarapat ng DERETSO na ilathala en toto (maliban na lamang sa ilang Annexes) ang “Comprehensive Audit Report on the operations of the San Pablo City Public Market and Shopping Mall” na ginawa ng Commission on Audit (COA) noong June 2001 upang makita kung nasambot o nalugi pa nga ba ang City Government sa operasyon ng nasabing public market & mall.
Ang nasabing audit ay ginampanan nina Teresita R. Del Mundo, State Auditor III, na siyang team leader at ni Mario A. Corcega, State Auditor II, team member. Ang binabanggit sa report na ito na “former city mayor” ay si Mayor Vicente B. Amante.
The Comprehensive Audit Report on the Operations of the
EXECUTIVE SUMMARY
On December 15, 1992, a big fire completely destroyed the old and original public market of
To give solution to the problems that existed after the destruction of the public market, its rehabilitation and re-construction must be made. But it would entail huge amount htat the City did not have at that time. With the ambition to have commercial center comparable with what is found in Metro Manila and with ingenuity of the former City Mayor, and the cooperation of the then Sangguniang Panglungsod, the San Pablo City Public Market and Shopping Mall was established as early as 1995. However, the operation of the new market was started in 1996. It consists of Phase I and Phase II buildings, in addition to the covered wet sections – the meat and fish sections.
Scope of Audit
A team was created under City Auditor’s Office Job Order No. 01-08 to conduct comprehensive audit on the operation of the
1. To determine the vialbility of the operations of the San Pablo Public Market and Shopping Mall;
2. To ascertain the viability and propriety of certain transactions selected in sampling basis;
3. To determine the fairness and reliability of the financial positions and the results of the market operations;
4. To determine whether the existing rules, regulations and policies relative to the operations of the public market have been strictly adhered; and,
5. To determine whether the desired return of investment in the selected programs, projects and activities related to the operations of the market were economically, efficiently and effectively achived.
Summary of Significant Findings and Recommendations
The significant audit findings and observations that are enumerated hereunder together with the corresponding recommendations, to wit:
1. The
2. Require the Chief Executive and the top officials concerned of the City to give significance and importance the operation of the market. There should be formulation of policies and guidelines on the operations and management of the San Pablo City Public Market and Shopping Mall. They should set forth objectives and targets to be achieved in order to ensure success of the market operations.
3. The City Government invested approximately P21.95 million on facilities and amenities that remained unused.
Require the City Treasurer to coordinate with the City Engineer Office to have the two elevators and two escalators put into operation of the market, and periodic maintenance and repair of these facilities should be done in order to extend its life span and operational capability. Require the City Treasurer to initiate actions to distribute the cost and expenses that will be incurred in the operations of these facilities to the lessees/tenants of the market as required in the contract of lease.
Require the City Treasurer to explore the possibility of utilizing the administration office at the fourth as the offices of the City Market Supervisor, City Engineer Office and office of the public security and assistance group. While the stalls in the second floor presently occupied by these offices can be leased to interested parties. On the other hand, require the City Treasurer to offer the space occupied by the Administration Office to interested parties for lease.
4. The City Government failed to implement the provision of Section X of the Contract of Lease relative to sharing of maintenance and operating cost of common areas and facilities of the market; thus, the City Government solely assumed the expense of at least P1.73M a year for the cost of electricity alone.
Require the City Treasurer, as the market Administrator, to initiate actions to implement the sharing of maintenance and operating cost of common areas and facilities.
5. The City Government disbursed funds for electric consumption of all tenants/stallholders in the market without appropriation and authority from the Sangguniang Panglunsod contrary to Section 4(1) of PD 1445; subsequently, it suffered losses of an average P116,894.75 every month for electricity it did not consume.
Require the City Engineer and City Legal Officer to explore the possibility that the individual stallholders and tenants of the market be directly provided with electricity by MERALCO.
Require the City Engineer to look into the discrepancy noted by the COA TAS in the consumption of electricity. If there was electric pilferage found, cause legal action against the culprit/s.
6. The City Engineer Office staff had collected daily the payment of electricity consumed at the market meat section without proper authority and did not issue official receipt contrary to Sections 64 and 68 of PD 1445 resulting to improper accounting of the collections.
Require the City Engineer Office staff to account and submit to the City Auditor records of their actual collections at the meat section of the market and to remit the undeposited collection to the City Treasurer Office.
7. The adjudication and award of market stalls were not undertaken in accordance with the provisions of the Revenue Code of the City of
Require Chief Executive and other concerned officials of the City to observed the provisions of Ordinance 56, otherwise known as the Revenue Code of the City of
8. The City Treasurer Office failed to monitor the actual occupancy of the lease resulting to nonpayment of stall rental and to implement administrative or legal sanction for violation of Sections IV, XIII and XVII of the contract of lease relative to the uses of the leased stall, transfer of rights and subleasing of the stall in the market.
Require the City Treasurer to remind all lesses to observe the provisions of the contract of lease relative to the uses, transfer and assignment of rights on leased stalls. And in case of relentless violation of any or all of the conditions cited in the contract despite this reminder, employ administrative or legal sanction to cancel the contract of lease as agreed upon in the contract.
Require the Market Supervisor to monitor the actual occupancy of the market stalls. Any violation of the provisions of the contract of lease shall be reported to the City Treasurer for appropriate action.
9. The contract of lease with Mr. Cheung Tin Chee in the third floor is deemed disadvantageous and prejudicial to interest the City Government of San Pablo.
Require the City Legal Officer to review and evaluate the foregoing premises for determining whether there is violation of Republic Act 3019 in executing the contracts of lease in the third floor of the SPC Public Market and Shopping Mall, and to ascertain the culpability of every official concerned. If warranted, initiate legal actions against the officials and persons involved to protect the interest of the City Government.
PART I – INTRODUCTION
Background Information
On December 15, 1992, a big fire completely destroyed the old and original public market of
To give solution to the problems that existed after the destruction of the public market, its rehabilitation and re-construction must be made. But it would entail huge amount that the City did not have at that time. With the ambition to have commercial center comparable with what is found in Metro Manila and with ingenuity of the former City Mayor, and the cooperation of the then Sangguniang Panglunsod, the San Pablo City Public Market and Shopping Mall was established as early as 1995. However, the operation of the new market was started in 1996. It consists of Phase I and Phase II buildings, in addition to the covered wet sections – the meat and fish sections.
Organization Set-up
Ms. Angelita M. Belen, the City Treasurer, administers the operations of the San Pablo City Public Market and Shopping Mall. This is in accordance with the Charter of the City of
Likewise, the City Engineer Office has assisted in the operations of the market by providing engineering services and technical assistance.
Scope of Audit
A team was created under City Auditor’s Office Job Order No. 01-08) to conduct comprehensive audit on the operations of the San Pablo City Public Market and Shopping Mall for the period January up to the first semester of the year 2001. The audit objectives are the following:
1. To determine the viability of the operations of the San Pablo Public Market and Shopping Mall;
2. To ascertain the validity and property of certain transactions selected in sampling basis;
3. To determine the fairness and reliability of the financial positions and the results of the market operations.
4. To determine whether the existing rules, regulations and policies relative to the operations of the public market have been strictly adhered; and,
5. To determine whether the desired return of investment in the selected programs, projects and activities related to the operations of the market were economically, efficiently and effectively achieved.
The audit was conducted in accordance with existing auditing standards, and scheduled for twenty-for (24) working days. However, it was extended because of other activities that need assistance of the COA Technical Audit Specialist.
Financial Profile
Illustrated hereunder are the incomes generated and expenses incurred in the market operations for the past four years, 1997 to 2001, to wit:
% of Expense PROFIT/(LOSS)
YEAR INCOME EXPENSES Over Income DURING THE YEAR
1997 P21,026,186.25 P66,801,880.16 305% (P44,875,693.91)
1998 12,388,390.95 51,527,960.85 416% (39,139,569.90)
1999 15,201,848.48 43,223,519.19 284% (28,021,670.61)
2000 14,643,899.88 39,976,663.25 273% (25,332,763.37)
TOTAL P64,160,325.66 P201,530,023.45 (P137,369,697.79)
Financial Condition
Increase/
2000 1999 (Decrease)
Total Assets P311,116,602.54 P232,229,067.79 P98,887,534.75
Total Liabilities P63,349,145.75 P86,048,121.08 (P22,698,975.33)
Total Residual Equity P267,767,456.79 P146,180,946.71 P121,586,510.08
PART II – FINDINGS AND RECOMMENDATIONS
I. Finding: The
The San Pablo Public Market and Shopping Mall – Phase I building was originally programmed for two-storey building with an estimated cost of P170,768,953.50, but it was finally constructed as four-storey building with construction cost of P304,863,281.76, including the cost of two (2) elevators and two (2) escalators with a total amount of P7,155,763.
To have the financial requirements needed for the construction of the originally two-storey building, the Sangguniang Panglunsod authorized the former City Mayor to secure a P150 million loan from the Land Bank of the
The loan agreement was approved in February, 1995. It was payable in seven years at the interest prevailing prime rate at the time of each drawdown pus a minimum spread of 2%. The loan was secured by the first real mortgage covering different properties of the City, including assignment of the City’s Internal Revenue Allotment in favor of the lender bank.
The schedule of loan releases and payments of amortization (principal and interest) that started on August 31, 1995 are shown in the statement provided by the City Accountant. Its breakdown is shown as follows:
Year Interest Principal Total
1995 P2,748,972.61 P0.00 P2,748,972.61
1996 19,830,861.87 11,666,666.66 31,497,528.53
Subtotal P22,579,834.48 P11,666,666.66 P34,246,501.14
1997 P20,654,350.50 P17,982,350.33 P38,636,700.83
1998 12,952,395.91 19,300,044.30 32,252,440.21
1999 10,946,858.28 18,827,499.12 29,774,357.40
2000 10,061,287.90 22,378,493.10 32,439,781.00
Subtotal P54,614,892.59 P78,488,386.85 P133,103,279.44
Jan to May
31, 2001 P3,493,276.44 P15,554,813.76 P19,048,090.20
Grand Total P80,688,003.51 P105,709,867.27 P186,397,870.78
Record revealed that the City was able to collect goodwill rights fee in the amount of P109,920,284.89 as of July 31, 2001 leaving a balance of P66,345.11. But this was not used for the payment of loan amortizations. It was rather appropriated and applied for the expansion of the Phase I building; for the purchase of parcel of land; and, payements of amelioration assistance and salary increase of the officials and employees of the City.
Despite the income generated from the operatons of the market to the tune of P64,160,325.66 for the period 1997 to 2000, it could not pay the loan interest of P54,614,892.59 incurred in the same period and other operating costs. For this reason, the City Government was obliged to transfer funds from the General Fund Proper to sustain the market operations and to pay the loan amortizations. This adversely affected the City’s other priority projects.
Recommendation
Require the Chief Executive and the top officials concerned of the City to give significance and importance the operation of the market. There should be formulation of policies and guidelines on the operations and management of the San Pablo City Public Market and Shopping Mall. They should set forth objectives and targets to be achieved in order to ensure success of the market operations.
The City should create a separate office responsible for the operations and management of the market headed by a qualified market administrator, the one who is expert and specialized in the market and shopping mall operations. Included in the functions and duties of the Market Administrator should have been as follows:
1. To implement all the plans, policies, rules and regulations formulated relative to the operations and management of the public market and shopping mall.
2. To define all duties and responsibilities of all personnel and staff under his supervision.
3. To look after the property and facilities of the market and provide these with adequate maintenance.
4. To maintain complete and systematic records of the market operations.
5. To coordinate with the City Engineer Office, City Health Office and City General Services Office in the maintenance, cleanliness, public order and sanitation of the public market.
6. To periodically evaluate the result of operations of the market, submit report on the evaluation made directly to the Chief Executive, and recommend and suggest possible remedies to the improvement of the market operation.
May karugtong
Ang Phase II o Mall 2 na baka nga maging multo na sa administrasyong Amante sapagkat hanggang ngayon nakatiwangwang pa rin ito. Milyong piso ang halaga ng ipinagpagawa nito.
posted by Deretso Balita @ 11:35 PM
1 comments
1 Comments:
Wow.. ok pala 'to ah?
-Juan
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