COA upholds disallowance of Catanduanes intel funds in 2012, 2013

MANILA, Philippines – The Commission on Audit (COA) has upheld the notice of disallowance against Catanduanes Governor Joseph Cua and five other provincial officials for the P14.8 million spent on intelligence and confidential activities in 2012 and 2013.

The COA en banc rejected their appeal, siding with the Intelligence and Confidential Fund Audit Unit, which found the spending invalid due to the lack of appropriations for Peace and Order Programs (POPs) during those years.

State auditors noted that the Annual Budgets for 2012 and 2013 did not allocate funds for POPs, indicating that the province did not prioritize intelligence funding.

The decision, signed by COA Chairperson Gamaliel Cordoba and Commissioners Roland Café Pondoc and Mario Lipana, cited a Department of the Interior and Local Government circular, which mandates budget appropriations for POP if deemed a priority by the local government unit.

Without a POP allocation, COA said it was impossible to determine whether the intelligence and confidential fund was calculated based on 30% of the POP funds or 3% of the Annual Appropriations, whichever was lower.

LGU officials argued that the absence of a specific POP appropriation was due to its integration into the Community Public Safety Plan, which was financed by the 20% Development Fund, Calamity Fund, and Maintenance and Other Operating Expenses.

However, the COA dismissed this explanation, stating that the law requires a “specific allocation for POPs in the annual budget, not funds pooled from regular appropriations.” – Rappler.com