COA scores Olongapo for P159-M collection failure
Posted 6 years ago
The Commission on Audit (COA) has revealed that the Olongapo City government has been remiss in its duty to collect over P159 million in additional revenues from delinquent constituents, blaming such negligence to the city’s failure to finance vital programs and projects of the city.
At the same time, COA decried Olongapo City’s failure to fully comply with the full disclosure policy in its local budget finances and bids and public offerings as required by the Department of the Interior and Local Government (DILG).
These, COA disclosed, are among the audit observations contained in the 2016 annual audit report for the city government that the audit agency released.
“Had the City Government efficiently imposed stringent collection policies and procedures and enforced the civil remedies available pursuant to Section 174 of RA No. 7160, the City could have realized additional revenues from various economic enterprises totaling to at least P159,005,065.72 which it could have utilized to finance vital programs and projects,” COA said.
The uncollected income were traced from the following economic enterprises that the city government operates: James L. Gordon Memorial Hospital – P133,060,886.79; Gordon College – P20,656,843.54; James L. Gordon Market and Mall, P4,245,451.00 and Olongapo City Public Market, P1,041,884.39.
Auditors noted a discrepancy of P49,579,824.99 between the figures of the accounting office and the JLGMH. They revealed that the discrepancy was due to the non-recording of other receivables by the JLGMH.
“The failure of the city to resort to the civil remedies in the collection of fees and charges violated Section 174 No. 7160,” COA said.
“Consequently, the inefficiency of the city go adopt rational revenue raising measures affected its financial capaicity to carry out better programs/projects/ activities for the welfare of its constituents,” the audit body added.
Remedies include judicial action or adminsitraive action thru the seizure of goods, chattles or other effects of the delinquent patients, stallholders and others with unpaid credit.
COA asked City Mayor Rolen Paulino to require department heads of the economic enterprises to implement aggressive collection strategies and enforce the cancellation of lease agreements, if any.