The Commission on Audit (COA) has raised doubts over the Provincial Government of Bohol’s (PGBh) transfer of P55 million to component Local Government Units (LGUs) for aid to victims of Typhoon Odette.

According to the COA report, these fund transfers were not covered by the required Memoranda of Agreement (MOA), violating government regulations and potentially exposing public funds to mismanagement risks.

The audit findings revealed that PGBh’s fund transfers, intended for the implementation of the National Housing Authority’s (NHA) Special Emergency Housing Assistance Program (SEHAP) for Typhoon Odette victims, failed to comply with Section 4(6) of Presidential Decree No. 1445 and COA Circular No. 2012-001.

These regulations mandate that all claims against government funds must be supported by complete documentation, including MOAs for inter-agency fund transfers.

COA auditors discovered the absence of MOAs between PGBh and the recipient municipalities upon reviewing the Fund Utilization Report (FUR) and Liquidation Reports (LR) for the SEHAP-related transfers.

Capitol’s act contradicts the documentary requirements outlined in COA Circular No. 2012-001, which specifically calls for MOAs as supporting documents for disbursements involving fund transfers between agencies, the report stated.

When questioned about the lack of MOAs, personnel from the Provincial Accountant’s Office (PAcO) stated that management believed such documentary requirements could be set aside during emergency situations to expedite the flow of funds.

However, the COA audit team firmly disagreed with this interpretation.

The auditors emphasized that Section 4(6) of PD No. 1445 clearly mandates that all claims against the government must be supported by sufficient documentation, with no provisions for exceptions, even in emergency cases.

The audit report further noted that it was incorrect for management to assume that MOAs between PGBh, NHA, and recipient municipalities were unnecessary.

COA pointed out that municipalities, under the Constitution and the Local Government Code of 1991, possess distinct and separate legal personalities from the province.

Consequently, any MOA signed between PGBh and NHA would not automatically bind the recipient municipalities to its terms and conditions, the report said.

From an operational standpoint, the absence of MOAs has resulted in an unclear delineation of rights and obligations between PGBh and the recipient LGUs.

COA said the ambiguity exposes the management to various risks in fund utilization.

For instance, without a MOA, there is no clear statement of applicable guidelines for the recipient LGUs to follow in making payments to qualified beneficiaries, particularly concerning prioritization.

The report noted that PGBh had identified 131,413 affected families, with the SEHAP intended for 11,000 of these families.

COA stressed that the situation necessitated prioritization and the application of specific criteria by recipient LGUs to attain the objectives of NHA’s SEHAP. The lack of a formal agreement leaves these critical aspects undefined.

COA expressed particular concern over the potential lack of uniformity in implementing guidelines across different LGUs in the province.

The audit body warned that these risks are further compounded by PGBh’s limited control over the processes and personnel of component LGUs, given their separate legal status.

ODETTE DAMAGE TO BOHOL

In December 2021, Super Typhoon Odette (international name: Rai) struck the country, leaving a trail of destruction across multiple provinces, with Bohol emerging as one of the hardest-hit areas.

Nearly three years later, the aftermath of the catastrophic event continues to resonate through the communities, infrastructure, and economy of Bohol.

Casualties and Displacement

The impact of Typhoon Odette was devastating, with Bohol reporting at least 111 confirmed deaths and over 2,040 injuries.

The storm displaced approximately 61,010 individuals, forcing many to evacuate their homes as the typhoon unleashed winds of up to 240 kilometers per hour and heavy rainfall, leading to widespread flooding and destruction across 33 of the 48 towns in the province.

Infrastructure Damage

The typhoon wreaked havoc on Bohol’s infrastructure, with initial estimates placing the total damage at around P10 billion. This figure includes significant destruction to roads, bridges, and public buildings, which severely hampered recovery efforts.

As of early 2022, nearly 4,000 houses were reported destroyed, but local assessments indicated that the actual number could be much higher, given the extensive damage in remote areas.

Agricultural Impact

Bohol’s agricultural sector faced catastrophic losses, with initial damage estimates reaching P3.1 billion. The storm devastated crops and livestock, threatening the livelihoods of countless farmers and fishermen who rely on these resources for their survival.

The agricultural losses were compounded by the challenges posed by hard recovery efforts, which have been slow and underfunded by the national government.

Education Sector Struggles

The educational infrastructure in Bohol was also severely affected, with 3,338 classrooms damaged across 366 schools.

Nearly two years post-typhoon, only 17% of these classrooms have been repaired or reconstructed, primarily due to funding shortages.

The Department of Education had highlighted the urgent need for P2 billion to fully restore educational facilities, yet only a fraction of this amount has been released for repairs.