The Commission on Audit has called the attention of the Department of Agriculture for its failure to complete infrastructure projects under the World Bank-funded Philippine Rural Development Program worth P957 million in 2017.
In its annual audit report, CoA said the DA was only able to finish four sub-projects out of the 16 SPs.
“Out of the 49SPs approved for implementation during the year costing P3.5756 billion, 16 SPs costing P1.124 billion were targeted for completion, of which only four SPs were completed and the remaining 12 SPs costing P957.678 million were not yet complete as of year-end,” it read.
Among the unfinished infrastructure projects were farm-to-market roads, potable water system and a warehouse in Cavite, Laguna, Batangas, Rizal and Quezon (Calabarzon) region, and Bicol.
“Any delay of implementation will also result in the delay of project completion thereby depriving the intended users of the immediate benefits that will be derived therefrom,” CoA said.
“We recommended and [the] management agreed to promptly resolve the identified issues in the delayed project implementation/completion,” it added.
Meanwhile, the National Food Authority vehemently denied that it diverted food security funds for other purposes because the P5.1-billion subsidy granted to the agency in 2017 was actually fully utilized for the procurement of palay, corn and imported rice for buffer stocking and food security during the year.
The NFA said that in its year-end report, the CoA did not even mention about the diversion of NFA funds.
“Yet a news report said that the Commission on Audit has called out the National Food Authority for diverting the P5.1-billion subsidy meant to ensure food security to pay off its maturing loans last year, possibly hampering the agency’s ability to maintain a stable rice supply.
“This is not accurate and this places NFA in a bad light,” the NFA said.
To set the record straight, the NFA said it received the P5.1-billion government subsidy from the Department of Budget and Management on Feb. 24, 2017. Of the total amount, the Bureau of Treasury automatically deducted 10 percent or P510 million as payment for previous years’ guarantee fee while P2.5-billion represented payment of annual contribution for the P8 billion worth of 10-year Treasury Bonds issued to the NFA in February 2008. This means the NFA actually received net proceeds of only P P2.090 B out of the total subsidy.
The NFA operates under a One Fund Concept in managing its finances. This means all funds and revenues accrue to one General Fund where all expenditures for operations, programs, and projects for food security, as well as for debt servicing are sourced.
During the exit conference with COA last month, the NFA was even commended for its prudent management of funds resulting to lower losses and timely settlement of its financial obligations.
At the end of the year, the NFA submitted a report to DBM detailing the actual utilization of the P5.1 B subsidy.