From the perspective of the THE AUDITOR, the dissolution of a government office like the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) requires a comprehensive audit process to ensure accountability, transparency, and the safeguarding of public funds and assets, including those related to the Maharlika Investment Fund (MIF).

Given that the Maharlika Fund belongs to the people, the audit by the Commission on Audit (CoA) must specifically focus on the OSAPIEA’s interactions with and any direct involvement with the management or utilization of the MIF and the Maharlika Investment Corporation (MIC).

Any records, documents, and data systems related to the MIF must be secured and transferred according to National Archive rules to ensure public access to information (to the extent permitted by law) and the potential for future congressional oversight or special audits.

The CoA may conduct special audits if deemed necessary particularly to address specific concerns raised by the public or other authorities regarding the use of funds.

The necessary undertakings for the CoA audit on the dissolution of OSAPIEA include:

Financial Audit and Accountability

1) Financial Accounting: The CoA must conduct a full financial audit of all accounts;

2) Asset Management and Disposal: A complete inventory of all properties and assets (e.g., equipment, records, supplies) must be performed. Adherence to established CoA and DBM joint Circular No. 2024-I guidelines for the disposal or transfer of these assets to successor or relevant agencies is crucial;

3) Settlement of Obligations: The audit must verify that all outstanding financial obligations, including employee benefits (if applicable), contracts with private entities, and fund transfers to other agencies, are properly settled and documented;

4) Fund Transfers and Liquidations: If the office transferred funds to implementing agencies (IA) or non-government organizations (NGO), the liquidation of these funds must be audited according to CoA Circular No. 2023-004 to ensure proper utilization and the refund of any unused amounts.

II. Compliance and Special Concerns

1) Compliance with Laws and Regulations: The audit will determine the Office’s compliance with all applicable laws, rules, and regulations throughout its operations and the dissolution process, in accordance with the Auditing Code of the Philippines (PD).

CoA must also audit the Department of Budget and Management (DBM) and its officials, including former secretary Amenah Pangandaman.

It is a constitutional mandate for CoA to audit the DBM, its transactions, and the use of its funds which are all subject to regular audit.

The head of the DBM—in this case former secretary Pangandama—is responsible for the management and use of funds within the department. The CoA’s audit reports cover the financial conditions and operations of the entire department, which inherently scrutinizes the actions and decisions of its leadership.

Collaboration: The DBM and CoA often interact and collaborate on financial matters, as seen when the DBM and the Department of Health jointly requested a special audit for the Health Emergency Allowance (HEA) funds to ensure transparency.

In short, the CoA has the inherent power and duty to audit the DBM and its former secretary as a standard and essential part of the government’s checks and balances system.

Email: arturobesana2@gmail.com