COA seeks criminal probe into DBM's P38.8-billion Malampaya Fund releases
MANILA — The Commission on Audit has recommended a criminal investigation on the Department of Budget and Management and other government agencies over the allegedly unlawful releases of P38.807 billion drawn from the proceeds of the Malampaya natural gas project.
"In view of the apparent disregard of applicable laws, rules and regulations which contributed to the misuse of funds, the [audit] Team recommends immediate conduct of investigation to determine officials and employees who may be responsible for the questionable release of funds and file appropriate charges, if warranted," the COA said in the recommendatory portion of its 80-page Sectoral Performance Audit report.
The performance audit report, released last October 30, covers Malampaya Fund releases by the DBM from 2004 to 2012, involving the full six-year presidential term of Pampanga Rep. Gloria MacapagalArroyo and the first two years of the term of former president Benigno Aquino III.
Based on the report, a total of P173.280 billion was received by the government as of June 30, 2013 as its share from the net proceeds of the operations of the CamagoMalampaya gas plant in Palawan.
The audit body said that of this amount, P38.807 billion or 22.41 percent were released by the DBM to various national government agencies (NGAs), government owned and controlled corporations (GOCCs) and the Provincial Government of Palawan from January 20, 2004 to May 21, 2012.
The COA said the fund releases “were not intended for energy resource development and exploitation programs and projects of the government.”
Thus, “the very purpose for which Malampaya Fund was established is therefore yet to be served”.
The special audit was conducted by overall team leader Grace De Castro, coteam leaders Ma. Luisa Gutay, Michelle Ceras, and Ray Christopher Pio Roda, and team member Pater Jigo Boado.
The audit team grouped their observations into three major findings based on the nature of the fund releases violations.
Based on the report, a total of P36,287,503,000 of the funds was released to 62 government implementing agencies (IAs) through 184 special allotment release orders (SAROs).
The COA said the fund releases were made by the DBM despite the absence of the mandatory documents such as formal request from the IAs, approval from the Office of the President, endorsement from the Department of Energy and DBM evaluation reports.
The table provided in the report shows that the following IAs received the biggest amounts of fund:
• Department of National Defense (Armed Forces of the Philippines- General Headquarters) — P7.268 billion
• Department of Finance-Bureau of Treasury (National Power Corp.) – P6.624 billion
• Department of Agriculture – P5.824 billion
• Department of Public Works and Highways (Office of the Secretary) – P2.99 billion
• Department of Interior and Local Government (Philippine National Police) – P2.14 billion
• DOF-BTr (National Electrification Administration) – P1.922 billion
• DOF-BTr (National Housing Authority) – P1.399 billion
• Department of Agrarian Reform – P900 million
• DPWH-Regional Office 1 – P759.362 million
• Department of Health – P745.926 million
• Department of Energy-Provincial Government of Palawan – P560 million
• DOE – P550 million
The rest of the IAs identified in the report received well below P500 million.