The Commission on Audit (COA) has ordered a former barangay captain to pay P38.2 million to the government, representing funds allegedly drawn from the general fund of Barangay Kalayaan in Angono, Rizal, from 2016 to 2021.

In its Notice of Finality of Decision dated March 5, 2026, COA cited the encashment of 485 checks at the Land Bank of the Philippines during the tenure of Bernardo Balagtas as chairman of Barangay Kalayaan.

Also named in the order is Marilou Eusebio in her capacity as barangay treasurer.

“Accordingly, the above-named persons liable shall pay the above amount immediately to the agency (COA) cashier,” read part of the document signed by COA Local Government Audit Sector Regional Director Dondon Marcos.

Prior to the issuance of the notice, state auditors Marietta Paltao and Olivia Bautista said Notices of Disallowance had been sent to Barangay Kalayaan and officially received for compliance.

“We were now able to audit various disbursements of Barangay Kalayaan due to non-submission of the disbursement vouchers,” said Paltao, who led the audit team.

“The aforementioned amount, which represents the paid transactions, was disallowed due to failure to submit disbursement vouchers and supporting documents despite repeated demand letters, pursuant to existing COA circulars,” she added.

COA also directed the municipal accountant to hold both Balagtas and Eusebio accountable.

Records showed that almost all of the checks listed had Eusebio as payee.

From June 10, 2016 to August 15, 2019, the barangay treasurer encashed 145 out of 209 checks issued during the period. From October 12, 2020 to November 23, 2021, she encashed 340 of 401 checks.

The list of issued checks also included payments to Meralco for electricity, Manila Water for water services, Skyline CATV for internet service, PLDT, catering services, and shares for the provincial government.