COA: Manila Has P3.5-B Liabilities

Despite having thousands of business and commercial establishments within its jurisdiction, the city of Manila is still in financial crisis with current liabilities amounting to P3.553 billion and available cash of only P1.006 billion.

This was bared by the Commission on Audit (COA) in its 2011 audit report released to media yesterday.

Under this bleak scenario, COA officials expressed fear that benefits due city government employees would be adversely affected because of non-payment of taxes and contributions to the Bureau of Internal Revenue, the Government Service Insurance System, Home Development Mutual Fund (Pag-IBIG) and the Philippine Health Insurance Corp. (Philhealth).

As gathered by government auditors, the city's unpaid taxes to BIR stood at P237.826 million while withheld contributions that were not remitted to GSIS, Pag-IBIG and Philhealth amounted to P97.664 million, P0.172 million and P20.794 million, respectively.

"The above amounts include taxes and contributions deducted from salaries and wages of personnel and claims of contractors/suppliers of the City for the months of November and earlier but remained unremitted to the respective government agencies at year-end," COA stated.

"The funds withheld for the BIR, GSIS, PAG-IBIG and PhilHealth were not remitted on time which in effect, may cause forfeiture of claims/benefits due the members/employees of the City and deprive the agencies concerned of the timely use of the funds due them," it warned.

COA said it has advised City officials, particularly the City Accountant and the City Treasurer, to "immediately remit all the withheld funds" and was assured that its recommendation will be implemented fast.

COA pointed to the City Government's bloated payroll as the biggest source of its problem noting that Manila has been forced to cough up money for salaries of its employees that was way beyond its capacity to earn.

"The City of Manila appropriated and incurred expenses for Personal Services in excess of the 45 per cent of the total annual income from regular sources realized in the next preceding fiscal year limitation by P1.092 billion and P966.243 million, respectively," the audit report noted.

Based on its calculations, Manila could only afford to pay personal service of only P2,457,972,363.96 out of its 2011 income of P5,462,160,808.79 but it appropriated P3.55 billion and actually disbursed P3,424,215,320.51 in salary payments including retirement and terminal benefits.

The situation was further worsened by the grant of "financial assistance" to city officials and employees amounting to P1.404 billion in the last three years - P556.69 million in 2009, P585.96 million in 2010 and P260.95 million in 2011.

Although the money effectively served as additional allowances, auditors found the said item inserted in the city's "Maintenance and other Operating expenses" account.

"Despite the fact that financial assistance was not provided in the City's Annual Executive Budget, it was noted that the transactions relative thereto were recorded under MOOE-Other Maintenance and Operating Expenses instead of Personal Services," COA noted.

When asked for an explanation, the City Accountant justified the grant as assistance in light of "the present economic conditions or financial crisis which have adversely affected their livelihood and to help them buttress the effects of the tremendous increase in the cost of living in the City."

The City Accountant added that the same is released only upon the approval of the Mayor when the finances of the City allow or contingent upon the availability of cash as certified by the City Treasurer," the COA said.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Anguished families make 'last visit' before Indonesia executions
    Anguished families make 'last visit' before Indonesia executions

    Relatives of two Australian drug smugglers on death row in Indonesia cried out in anguish as they arrived at a prison island Tuesday, in distressing scenes as they paid what could be their final visit to the condemned men ahead of their executions. Myuran Sukumaran and Andrew Chan, ringleaders of the so-called "Bali Nine" heroin-trafficking gang, are among eight foreign drug convicts who are expected to face the firing squad imminently after authorities gave them formal notice of their …

  • Celebrities urge Australia PM to do more to save execution pair
    Celebrities urge Australia PM to do more to save execution pair

    Celebrities including Oscar winner Geoffrey Rush released a video Tuesday urging Australian Prime Minister Tony Abbott to fly to Indonesia to help save two citizens facing execution, forcing the government to defend its tactics. "Bali Nine" drug traffickers Myuran Sukumaran and Andrew Chan could face the firing squad within hours, along with others from Brazil, Nigeria, the Philippines and an Indonesian prisoner. Australia, Indonesia's close neighbour, has mounted a sustained diplomatic …

  • ISIS has not penetrated Phl – AFP
    ISIS has not penetrated Phl – AFP

    Security officials yesterday maintained that the Islamic State of Iraq and Syria (ISIS) has not penetrated the Philippines following an expert’s warning that the group poses a threat to the country. Abu Sayyaf, BIFF (Bangsamoro Islamic Freedom Fighters), private armed groups to our knowledge are the people making problems down south,” Armed Forces chief Gen. Gregorio Catapang Jr. said. The BIFF and the Abu Sayyaf have pledged allegiance to the ISIS but it remains uncertain whether they are …

  • Cerbo named national police intel chief
    Cerbo named national police intel chief

    Philippine National Police officer-in-charge Deputy Director General Leonardo Espina yesterday ordered the appointment of PNP spokesman Chief Superintendent Generoso Cerbo Jr. as chief of the Directorate for Intelligence. …

  • Pump prices up anew
    Pump prices up anew

    Oil companies announced yesterday another round of price hikes with independent oil firms among the first to issue their respective announcements. PTT Philippines, the local subsidiary of Thailand’s biggest oil firm, and Phoenix Petroleum Philippines, another independent oil company, were among the first to issue their respective advisories. Seaoil Philippines also issued its announcement. …

  • PNP to ease rules on gun permit processing
    PNP to ease rules on gun permit processing

    The Philippine National Police will simplify requirements for getting a firearm’s permit under the new gun control law, PNP officer-in-charge Deputy Director General Leonardo Espina said yesterday. Espina said they are working to simplify the process to secure a license to own and possess firearms (LTOPF) amid complaints of excessive requirements from gun holders. Espina directed the Firearms and Explosives Office (FEO) to make it easier for legitimate gun owners to comply with the …

  • Mercy for Mary Jane: Pacman joins appeals
    Mercy for Mary Jane: Pacman joins appeals

    World boxing superstar Manny Pacquiao took time out yesterday from final preparations for his $400-million megafight with Floyd Mayweather Jr. to plead for the life of a Filipina on death row in Indonesia. Pacquiao, a national hero in the Philippines, added his voice to a chorus of global opposition led by United Nations Secretary General Ban Ki-moon to the executions of a group of foreign drug convicts, including compatriot Mary Jane Veloso. The eight-division world champion, who will face …

  • Phl condoles as Nepal death toll hits 3,700
    Phl condoles as Nepal death toll hits 3,700

    Foreign rescue teams equipped with heavy cutting gear and relief supplies were landing round the clock at Nepal’s only international airport on the outskirts of Kathmandu, which has been devastated by Saturday’s 7.8-magnitude quake. “We need more helicopters for our rescue operations in rural areas,” said Nepal Home Affairs spokesman Laxmi Prasad Dhakal. In a statement issued yesterday, Aquino said a team from the Philippine embassy in New Delhi, India would travel to Nepal to meet the needs …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options