COA: P1.42B meant for drivers, operators
The Commission on Audit has called the attention of the Department of Transportation for an unused P1.42 billion out of the P16.97-billion budget for the service contracting program (SCP) in 2022.
In an audit report, state auditors said P1,426,466,534.86, or 8.41 percent, of the total fund allocation for the SCP, was not used.
At least P619,709,794.77 or 3.99 percent of the total obligations of P15,543,533,465.14 remained unpaid to SCP participants as of Dec. 31 last year.
COA cited overpayments to participants worth P21,872,365.50 had not yet been collected as of Dec. 31, 2022.
Under the service contracting program, the participating operators and drivers in the government’s free ridership program would receive a one-time payout and weekly payments based on kilometers traveled per week with or without passengers.
The Land Transportation Franchising and Regulatory Board would tap operators of public utility vehicles under an agreement.
Republic Act 11494 or the Bayanihan to Recover as One Act, RA 11518 or the 2021 General Appropriations Act, and RA 11639 or the General Appropriations Act allocated P16.97 billion for the implementation of the SCP.
This would provide monetary subsidies as a temporary livelihood for workers in the transport industry who were recovering from the impact of the COVID-19 pandemic and the continuous implementation of the program.
According to COA, the LTFRB failed to fully utilize the SCP phase 1 funds despite the extension of its utilization until June 30, 2021.
It cited a total cash in bank balance as of Aug. 5, 2021 in the amount of P4,007,491,117.58 that was fully refunded by the LTFRB to the DOTr.
It recommended to the LTFRB to 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 Dec. 31, 2022.
The auditors directed the immediate refund of all unutilized SCP funds to the DOTr for their remittance to the Bureau of the Treasury.
On May 15, 2023, the LTFRB vowed to exert its best effort to comply faithfully with the order.