COA slams Iloilo LGU for depriving public schools of R46.4-M special fund

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Local officials of Iloilo City have deprived public schools of R46.4 million in educational projects much needed due to damage wrought by Yolanda and other typhoons, after the city government decided to put the money in time deposit in 2014, the Commission on Audit (COA) disclosed recently.

COA, in its 2014 annual audit examination report for Iloilo City, said a total R46,428,163.63 in Special Education Fund (SEF) was deposited in time deposit which is not in conjunction with the provisions of Republic Act no. 5447, the law that created the SEF.

COA said the SEF should have been used by city officials to support the goals of education as provided under the Constitution.

“The Iloilo Provincial government invested a portion of its Special Education fund amounting to R 46,428,163.63 in a time deposit account instead of using the Funds for the specific purposes for which these were intended, contrary to the provisions of Section 1 of R.A. No. 5447 and Section 272 of R.A. No. 7160, thus, deprived the public schools of the benefit of the programs and projects that could have been sourced there from,” the audit examination report stated.

COA noted that with the various natural disasters that hit Iloilo City in 2014, the SEF should have been used for the restoration of damaged schools and educational facilities.

“Had the money invested in the time deposit account been utilized, it could have very well served as financial support for the goals of education as envisioned by the constitution,” the audit agency stated.

Under R.A. 7160 or the Local Government Code, SEF tax should be allocated for the operation and maintenance of public schools, construction and repair of school buildings and facilities; educational research, sports development or purchase of books and periodicals.

State auditors said there is no provision in the law that provides for the setting up of a time deposit account for the SEF.