COA flags OCD over slow utilization of COVID-19 funds

The Commission on Audit (COA) has flagged the Office of Civil Defense (OCD) for the supposed slow utilization of funds intended for the government’s COVID-19 pandemic response.

In its audit report for 2021, COA said the OCD’s slow construction of quarantine and isolation facilities in various local government units (LGUs) “deprived the intended beneficiaries of the needed facilities” to curb the spread of the virus.

State auditors said the implementing agency has received P4.5 billion under Republic Act (RA) No. 1194 or the Bayanihan to Recover as One Act for the construction and maintenance of isolation facilities.

In compliance with the law, the OCD transferred over P713.529 million across 24 LGUs in six regions, of which P335.293M was allocated for the operational requirements of two LGUs, while the remaining P378.235 million was intended for the construction of isolation facilities in 22 LGUs.

However, according to COA, Only four of the 22 LGUs completed the construction of the isolation facilities.

“The non-completion of these isolation facilities within the target completion date deprived the intended beneficiaries of the needed facilities to curtail the spread of the virus during the pandemic,” said COA.

“Moreover, failure of the LGUs to complete the construction within the deadline will result in the termination as provided under Section 4 of RA 1159 or the ‘Extending the Availability of the Appropriations under RA 11494’,” it added.

The audit agency, however, pointed out that the OCD has “deliberately made consistent efforts to ensure the timely implementation of the program and projects through the issuance of various memoranda which clearly set clear guidelines and conditions including the validity of funds for all recipient LGUs to be guided properly.”

Relief funds

Further, the COA noted the OCD’s low utilization rate of funds for its humanitarian and disaster relief (HADR) operations transferred to its regional offices (ROs).

The COA said OCD received a quick response fund (QRF) of over P1.854B in 2021 under RA 11518 or the 2021 General Appropriations Act (GAA). Its office utilized more than P1.814B or 97.89%.

Its ROs, however, only utilized 74.17% of the funds transferred to them, leaving an unused balance of around P174.756M.

Responding to COA's findings, the OCD regional offices said the low utilization was due to the late downloading of funds, incomplete technical specifications and/or details on the proposed procurement, as well as lack of technical experience of the Regional Bids and Awards Committee.

“However, these issues could have been avoided had the agency judiciously planned its procurement projects,” the COA said.

“ROs inability to fully utilize the funds transferred deprived the government and the intended users of the benefit that could be derived therefrom,” it added.

OCD head responds

For his part, OCD Administrator Ricardo Jalad said the COVID-19 funds are “demand-driven.”

Since the budget was allocated for the utilities and maintenance of COVID-19 facilities as well as for the basic needs of healthcare workers, Jalad said “it cannot be spent on other expenses.”

“If these requirements are meant, there’s no need for additional expenses. if these quarantine facilities will have a reduction in occupancy, there will be a reduction in expenses,” he said in an interview on ANC.

He said the slow implementation of funds is due to the late downloading of funds. He added that some of their personnel were also hit by COVID-19.

Despite the unused funds, Jalad said the OCD received an Unqualified Opinion from COA. The Unqualified Opinion is the highest finding bestowed on post-audit.

“In their letter they said they have a basis for giving an Unqualified Opinion. Therefore, the overall handling of OCD funds are excellent,” he said. —KBK, GMA News