The Commission on Audit (COA) spotted various deficiencies in the management of the 5% Local Disaster Risk Reduction and Management Fund (LDRRMF) of the Mabalacat City government and “may not still be considered to be fully disaster-prepared owing to lack of in-depth planning and proper monitoring of resources.”
The LDRRMF is a unique program in the Philippines that encourages local government investment in disaster risk reduction. The LDRRMF builds on a long-standing directive from the national government to local governments to set aside 5% of their budgets as a local calamity fund.
Starting in 2012, the government introduced new legislation to authorize local governments to use up to 70% of these funds to support pre-disaster preparedness and risk reduction measures.
Section 21 of RA 10121 states that not less than five percent (5%) of the estimated revenue from regular sources shall be set aside as the LDRRMF to support disaster risk management activities such as, but not limited to, pre-disaster preparedness programs including training, purchasing life-saving rescue equipment, supplies and medicines, for post-disaster activities, and for the payment of premiums on calamity insurance.
Of the amount appropriated for LDRRMF, thirty percent (30%) shall be allocated as Quick Response Fund (QRF) or stand-by fund for relief and recovery programs in order that situation and living conditions of people In communities or areas stricken by disasters, calamities, epidemics, or complex emergencies, may be normalized as quickly as possible.
COA Regional Director Ma. Corazon S. Gomez called the attention of Mayor Crisostomo Garbo to address the audit observations.
The 2020 COA Annual Report revealed that “the city’s appropriation for LDRRMF was short by P4,905,181.00 of the required 5% (P91,734,416.25) of the estimated revenue from regular sources amounting to over P1.8 billion as a result of reversion of funds from the LDRRMF to the projects, programs and activities (PPAs) of the Mayor’s Office, personnel services, and maintenance and other operating services leaving a short balance of P86,829,235.25 or 4.7%.”
The COA report also added “P27,974,723.03 worth of COVID-19-related disbursements charged from the unexpended balances of the LDRRMF accrued to special trust fund were not duly supported with amended/supplemental annual LDRRM plan for CY 2020 and/or an Appropriation Ordinance authorized by the Sangguniang Panlungsod presided by Vice Mayor Gerald Aquino contrary to Section 321 of RA No. 7160 or the Local Government Code.”
However records showed that the city has not prepared an amended LDRRM investment plan for CY 2020, instead the three-year local development investment program covering CY 2018-2020 which was drafted four years ago by the local development council was presented.
Moreover, the audit team noted that P2,833,000.00 LDRRMF project, programs and activities (PPAs) were also reverted and reprogrammed to other expense classes as payment for overtime pay of CDRRMO personnel.
The enactment of the city’s Appropriation Ordinance No. 30, S. 2020 of the Sangguniang Panlungsod presided by Vice Mayor Gerald Aquino dated November 27, 2020 authorized the reversion of five LDRRMF PPAs (Personnel trainings; Year-end assessment; Orientation and assistance program; Purchase of rescue vehicles and maintenance; and Auxiliary services of 300 volunteers at P3,000/month) with aggregate budget of P4,905,181.00. While, the balance of P2,072,181.00 was also reprogrammed to various MOOEs and PPAs under the office of Mayor Garbo.
The COA report emphasized that these reversions and reprogramming of the city government has violated Section 336 of RA 7160 and Article 454 of its IRR required that the item(s) of appropriation to be augmented and that from which the savings will be derived are within the same expense class in the appropriations within the executive department or the legislative department.
Meanwhile, the COA report also revealed that seven expenditures totaling P1,675,495.00 for the 1st Mayor Cris Garbo (MCG) Fire & Rescue Olympics on March 27, 2020 (CDRRM uniforms P635,400; T-shirts P279,000; Cash advance payments for prizes P70,000; Payment of ID maker and printer inks P71,000; Payment of meals P415,710; Payment of training materials P10,585; Payment of trophies, sash and flowers P193,800) were not among those eligible as pre-disaster preparedness programs enumerated under COA Circular No. 2021-02 on the use of the LDRRM.
The Mabalacat City government has not yet commented on the audit recommendations, COA report said.