Malabon audit finds P37M in unsupported expenses

The Commission on Audit (CoA) flagged P37.6 million in undocumented expenditures by the Malabon City government for 2023 projects, including P24 million disbursed through the office of Mayor Jeannie Sandoval.

In its annual audit report, state examiners revealed the local government failed to submit required supporting documents for transactions covered by disbursement vouchers (DVs), violating Section 7.1.1 of CoA Circular No. 2009-006.

The missing documentation included payroll records, daily time reports, and project proposals needed to verify two major liquidations worth P8 million and P16 million.

“The absence of these documents prevented our team from validating the transactions’ propriety,” the CoA stated, citing the Government Auditing Code mandate that all public fund claims require complete documentation.

The audit specifically noted Mayor Sandoval’s accountability under circular provisions requiring agency heads to ensure timely submission of financial reports.

While the Malabon LGU pledged compliance with CoA recommendations, auditors emphasized the lapse compromised transparency in the use of public funds.

The development followed CoA’s increased scrutiny of local government expenditures nationwide, particularly for projects implemented during election years.

Malabon officials have yet to specify a timeline for submitting the outstanding documents.