CoA says keeping eye on ‘unsupported’ OSG deals
In its defense, the OSG said the bank credit transactions had already shrunk to P10,663,566.10 as of 11 March
Daily TribuneIn its defense, the OSG said the bank credit transactions had already shrunk to P10,663,566.10 as of 11 March
The Commission on Audit (CoA) has called the attention of the Office of Solicitor General (OSG) to “unsupported” bank credit transactions in the aggregate amount of P28.457 million.
In its 2023 report, CoA discovered the OSG had “unidentified and unverified” bank credit transactions amounting to P28,457,192.14 recorded under Cash in Bank-Local Currency, Current Account (CIB- LCCA).
The reliability of collections, however, could not be established by the state auditors due to the lack of supporting documents.
Based on the audit, the sum pertained to deposits and remittances intended to pay honoraria to lawyers who rendered legal assistance and services to the OSG’s various client-agencies.
The identification and verification of the nature of all reconciling items, in this case, bank credit transactions, is required to establish control and ownership of the OSG over its ability to use the right and obtain the benefits that the right produces as per asset recognition criteria, CoA said.
It should be supported by the appropriate documents to substantiate the CIB-LCCA account, the CoA added.
Audit findings revealed, however, that the P28.457-million worth of bank credit transactions were not supported by credit memoranda and notices of payments/remittances from various client-agencies of the OSG for the payment of honoraria to lawyers rendering legal assistance/services.
“In view thereof, the identity of the lawyers and the remitting client-agencies concerned could not be determined, thus, rendering the year-end balance of the account CIB-LCCA unreliable,” CoA said. It added that it was not the first time the OSG had been called out due to the same irregularities.
In its defense, the OSG said the bank credit transactions had already shrunk to P10,663,566.10 as of 11 March.
Nevertheless, the OSG committed to continually coordinate with the legal task forces concerned to exercise all means to identify bank credit transactions that appear as reconciling items in the agency’s bank reconciliation statements.
The CoA said it would keep an eye on the OSG’s adherence to its recommendation.
