Top OTC execs under probe

“The three OTC officials are in hot water over their alleged misuse of P3.3-million PUVMP funds.”

Department of Transportation (DoTr) Secretary Arthur Tugade has ordered the suspension of the head of the Office of Transportation Cooperatives (OTC) and two other officials over their alleged misuse of P3.3 million worth of public funds.

In a suspension order signed by DoTr Undersecretary for Administration Artemio Tuazon Jr., OTC chairman Emmanuel Virtucio, executive director Eugene Pabualan and Finance and Administration division chief/special disbursing officer Wilfredo Clave Jr. will be suspended for a maximum term of six months pending results of an investigation due to grave misconduct and conduct prejudicial to the best interest of the service.

The three OTC officials are in hot water over their alleged involvement in the misuse of P3.3-million funds allocated for Public Utility Vehicle Modernization Program (PUVMP).

The DoTr gave them three days to respond to the charges.

In a statement yesterday, the department said it had downloaded P3.3 million to the OTC for the implementation of the PUVMP on Dec. 15, 2017.

However, the Commission on Audit (CoA), in its 2017 report, discovered the OTC immediately released the P3.3-million budget as cash advances: P2 million to Pabualan and P1.3 million to Clave which they deposited to their personal accounts.

State auditors also found only P33,000 had been liquidated by Pabualan while Clave liquidated only P537,255.36, leaving an unliquidated balance of around P2.73 million.

Tugade has ordered that there will be no further downloading of funds unless the P3.3 million released to the OTC has been fully liquidated.

“Why did they deposit the funds to their personal accounts? Is that their money? They should explain what happened to the P3 million. If not, they should no longer be working in their offices,” Tugade said.

The same audit report also discovered other irregularities allegedly committed by the OTC chief such as his failure to request authority to impose fees on certificates issued to participants of seminars and trainings conducted by the OTC; failure to observe rules and regulations involving the reimbursement of travel expenses; penalty charges due to airline trip cancellations; claiming transportation allowances despite being provided with a transportation vehicle; travel expenses amounting to over P200,000 not authorized by the DoTr secretary; miscellaneous expenses incurred on weekends and holidays and in places not indicated in a travel order; and clothing allowance despite not having met the required six months of rendered services.

Virtucio was also asked to explain the office’s irregular procurement of a pick-up vehicle contrary to the approved authority to purchase issued by the DoTr secretary, and through a negotiated procurement instead of a competitive bidding; the OTC’s hiring of Contract of Service Personnel who did not have technical expertise and performed regular functions of the agency; and using cash advances amounting P85,000 to procure common supplies, instead of applying the standard procurement procedure.

Tugade assured the three officials of a fair investigation, but he warned heads will roll if they are found guilty.