Cabanatuan flagged over undisposed assets
‘On the contrary, had the DC expedited the disposal, bigger return of cost and income to the city could have been generated and put to good use for the benefit of its constituents.’
Daily Tribune‘On the contrary, had the DC expedited the disposal, bigger return of cost and income to the city could have been generated and put to good use for the benefit of its constituents.’
The Commission on Audit (CoA) called out Cabanutan City for failing to dispose of 36 unserviceable vehicles, including dump trucks and transit mixers, which, if sold, could generate additional funds for the city.
The 36 units of unserviceable vehicles were acquired from 2011 to 2012 with carrying value of P13,615,245.22 and total appraised value of P59,584,371.57, respectively, based on the 2023 audit report.
CoA lamented that as of 2023’s year-end, Cabanatuan City’s disposal committee (DC) still failed to properly treat and reasonably dispose of the subject vehicles, notwithstanding that state auditors had already raised the recommendation as early as 2022.
Audit findings showed that the DC did not initiate any proceedings on disposing of the 36 unserviceable vehicles last year. Their last activity was on 20 December 2022, when they conducted the second auction sale, which they claimed was a failure due to a lack of bidders.
The DC informed auditors that they are planning to repair the vehicles for possible usage of the Cabanatuan City local government unit, but auditors said it may entail huge funds.
An ocular inspection on 14 February revealed that the said vehicles were still being kept in an open space, thus, improperly maintained and exposed to the elements of nature causing fast deterioration.
According to CoA, the continuous retention of subject unserviceable vehicles caused further devaluation or decrease in the recoverable value of the impaired assets, which was detrimental to the LGU.
It also breached Section 79 of Presidential Decree No. 1445 or Government Auditing Code of the Philippines, which provides for the destruction or sale of unserviceable property.
“On the contrary, had the DC expedited the disposal, bigger return of cost and income to the city could have been generated and put to good use for the benefit of its constituents,” the auditing body said.
