The Commission on Audit (COA) has flagged over P1 billion in unused funds for the government’s service contracting program (SCP).
In its 2022 audit report on the Department of Transportation (DOTr), the COA said P1,426,466,534.86 or 8.41% of the total fund allocation of P16,970,000,000 for the SCP was not utilized.
State auditors also observed that P619,709,794.77, or 3.99% of the total obligations of P15,543,533,465.14, remained unpaid to SCP participants as of December 31, 2022.
Moreover, it said that overpayments to participants amounting to P21,872,365.50 had not yet been collected as of December 31, 2022.
Under the service contracting program, operators and drivers who participate in the government’s free ridership program will receive a one-time payout and weekly payments based on kilometers traveled per week, with or without passengers.
Operators of PUVs will be contracted via an agreement based on a plan prepared by the Land Transportation Franchising and Regulatory Board (LTFRB).
The Republic Acts (RA) 11494 (Bayanihan to Recover as One Act), 11518 ( 2021 General Appropriations Act), and 11639 (2022 GAA) allocated a total of P16,970,000,000 for the implementation of the SCP to provide monetary subsidies that serve as a temporary livelihood for those workers in the transport industry who were recovering from the effects of the COVID-19 pandemic and for the continuous implementation of the program.
The LTFRB was not able to fully utilize the SCP phase 1 funds despite the extension of its utilization until June 30, 2021; thus, the total cash in bank balance as of August 5, 2021, in the amount of P4,007,491,117.58, was fully refunded by the LTFRB to the DOTr, COA said.
The COA recommended to the LTFRB, to which the latter agreed, that it facilitate the immediate payment of all unpaid obligations to the SCP participants and their corresponding liquidation to the DOTr to determine the exact amount of unutilized funds as of December 31, 2022.
State auditors also ordered the immediate refunding of all unutilized SCP funds under Republic Act Nos. 11494, 11518, and 11639 that are refundable to the DOTr for their remittance to the Bureau of the Treasury.
“In a letter dated May 15, 2023, the LTFRB committed that they will exert their best effort to comply faithfully with the issued Memorandum Circular for the SCP. Nonetheless, they are continuously [making] efforts to fully comply with the detailed audit findings of the Audit Team,” COA said. — VBL, GMA Integrated News
