Paranaque incurs P2.8-B deficit: COA

Michael Punongbayan, The Philippine Star
Posted at 08/30/2015 8:44 AM

MANILA, Philippines – The city government of Parañaque has incurred a cash deficit of P2.853 billion last year due to fund mismanagement, according to the Commission on Audit (COA).

In a 2014 report sent to Mayor Edwin Olivarez on June 30, but released only yesterday, state auditors said the city government also had unrealized income of P786.147 million.

The amount include uncollected local taxes amounting to P535.776 million, projected income from public auction of delinquent real properties amounting to P240.614 million and ad valorem tax on idle land amounting to P51 million.

The COA report also questioned the use of last year’s collections for the settlement of previous obligations amounting to P824.099 million and non-payment of obligations amounting to P1.180 billion last year in violation of the Local Government Code.

The COA report recommended cost-cutting measures and strategies to improve the city government’s cash position, an intensified collection of local taxes and identification of other potential sources of income to meet its targets.

City officials were also asked to provide attainable budget estimates and implement its plans, programs and policies within its financial resources.

In a 2014 report sent to Mayor Edwin Olivarez on June 30, but released only yesterday, state auditors said the city government also had unrealized income of P786.147 million.

The amount includes uncollected local taxes amounting to P535.776 million, projected income from public auction of delinquent real properties (P240.614 million) and ad valorem tax on idle land (P51 million).

The COA report also questioned the use of last year’s collections to settle inter-fund borrowings amounting to P205.42 million and failure to provide funding for statutory and contractual obligations amounting to P318.07 million, in violation of the Local Government Code.

State auditors recommended cost-cutting measures and strategies to improve the city government’s cash position, an intensified collection of local taxes and identification of other potential sources of income to meet its targets.

City officials were also asked to provide attainable budget estimates and implement plans, programs and policies within its financial capability.

State auditors said city officials gave assurance they would exert efforts to address the cash deficit next year.