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.

  • US ambassador recovers from knife attack praised by N. Korea
    US ambassador recovers from knife attack praised by N. Korea

    The US ambassador to South Korea, Mark Lippert, was recovering from surgery Thursday after having his face and arm slashed by a knife-wielding activist in an attack applauded by North Korean state media. The United States condemned the "act of violence" which saw the ambassador rushed to hospital where his condition was described as stable after two-and-a-half hours of surgery that included 80 stitches to a deep gash on his right cheek. During the assault, Kim screamed a slogan in favour of …

  • New Moro rebel group emerges
    New Moro rebel group emerges

    A radical Muslim cleric trained in the Middle East and considered one of the leaders of the Bangsamoro Islamic Freedom Fighters (BIFF) has broken away from the terror group to form his own band of jihadists who are now reportedly providing sanctuary to bomb expert Basit Usman and at least five foreign militants, the military said yesterday. Armed Forces of the Philippines (AFP) spokesman Col. Restituto Padilla, citing reports from the field, said the Justice for Islamic Movement (JIM) was …

  • Billionaire finds wreck of WWII ship in Phl
    Billionaire finds wreck of WWII ship in Phl

    Microsoft co-founder Paul Allen says he has found the Japanese Navy’s biggest warship at the bottom of the sea in the Philippines, 70 years after US forces sank it. Allen posted a photo on Twitter on Tuesday of the World War II battleship Musashi’s rusty bow, which bore the Japanese empire’s Chrysanthemum seal. The American billionaire, who has also pursued space exploration, said his luxury yacht and exploration ship, the M/Y Octopus, found the Musashi one kilometer (1.6 miles) deep on the …

  • Sy moves up, Villar enters Forbes list of billionaires
    Sy moves up, Villar enters Forbes list of billionaires

    Eleven Filipinos are included in Forbes’ 2015 list of richest people in the world. Filipino-Chinese tycoon Henry Sy Sr. continues to be the wealthiest man in the Philippines. The 90-year-old SM supermalls, banking and property tycoon ranked 73rd among the world’s richest with an increased net worth of $14.2 billion from $11.4 billion last year. Sy’s net worth was attributed to the continued growth of his SM Investments Corp. and his more recent venture, the City of Dreams Manila resort and …

  • Ohio mom, boyfriend guilty; child emailed teacher for help

    PORTSMOUTH, Ohio (AP) — A woman and her boyfriend pleaded guilty to raping her young children and were sentenced to prison on Wednesday, a year after one of her daughters emailed a teacher for help and said she and her siblings were being chained to their beds, deprived of food and sexually assaulted. …

  • US billionaire says WWII Japanese ship found in Philippines
    US billionaire says WWII Japanese ship found in Philippines

    Microsoft co-founder Paul Allen said Wednesday he had found one of Japan's biggest and most famous battleships on a Philippine seabed, some 70 years after American forces sank it during World War II. Excited historians likened the discovery, if verified, to finding the Titanic, as they hailed the American billionaire for his high-tech mission that apparently succeeded after so many failed search attempts by others. Allen posted photos and video online of parts of what he said was the …

  • World's oldest person wonders about secret to longevity too
    World's oldest person wonders about secret to longevity too

    TOKYO (AP) — The world's oldest person says 117 years doesn't seem like such a long time. …

  • Australian drug smugglers being taken to Indonesian island for execution - media
    Australian drug smugglers being taken to Indonesian island for execution - media

    By Jane Wardell and Beawiharta SYDNEY/DENPASAR, Indonesia (Reuters) - Two convicted Australian drug smugglers were removed from a prison in Bali on Wednesday to be taken to an Indonesian island where they will be shot by firing squad, Australian media reported. The planned executions of Myuran Sukumaran, 33, and Andrew Chan, 31, have ratcheted up diplomatic tensions amid repeated pleas of mercy for the pair from Australia and thrown a spotlight on Indonesia's increasing use of the death …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options