COA Investigates DBM's Alleged Unlawful Release of P38.8 B Malampaya Proceeds During Previous Admin

The administration of Pres. Duterte is indeed doing its best to have a cleaner government after the Commission on Audit (COA) recommended a criminal investigation on the Department of Budget and Management and other government agencies over the allegedly unlawful releases of P38.807 billion drawn from the proceeds of the Malampaya natural gas project in the province of Palawan.

COA released the following statement:

"In view of the apparent disregard of applicable laws, rules and regulations which contributed to the misuse of funds, the [audit] Team recommends immediate conduct of investigation to determine officials and employees who may be responsible for the questionable release of funds and file appropriate charges, if warranted," the COA said in the recommendatory portion of its 80-page Sectoral Performance Audit report.

The Commission on Audit released the performance audit report last October 30 which covers Malampaya Fund Release by the DBM from 2004 to 2012 which involved the full six-year term of former Pres. Arroyo and the first two years of the term of former Pres. Benigno S. Aquino III.

Based on the report, a total of P173.280 billion was received by the government as of June 30, 2013 as its share from the net proceeds of the operations of the Camago-Malampaya gas plant in Palawan.

The audit body said that of this amount, P38.807 billion or 22.41 percent were released by the DBM to various national government agencies (NGAs), government owned and controlled corporations (GOCCs) and the Provincial Government of Palawan from January 20, 2004 to May 21, 2012.

COA stated further that the fund releases "were not intended for energy resource development and exploitation programs and projects of the government.”

Thus, “the very purpose for which Malampaya Fund was established is therefore yet to be served”.

Based on the report, a total of P36,287,503,000 of the funds was released to 62 government implementing agencies (IAs) through 184 special allotment release orders (SAROs).

The COA said the fund releases were made by the DBM despite the absence of the mandatory documents such as formal request from the IAs, approval from the Office of the President, endorsement from the Department of Energy and DBM evaluation reports.

Here's the List of IAs Receiving the Biggest Amount of Malampaya Funds:

  • Department of National Defense (Armed Forces of the Philippines- General Headquarters) - P7.268 billion
  • Department of Finance-Bureau of Treasury (National Power Corp.) – P6.624 billion
  • Department of Agriculture – P5.824 billion
  • Department of Public Works and Highways (Office of the Secretary) – P2.99 billion
  • Department of Interior and Local Government (Philippine National Police) – P2.14 billion
  • DOF-BTr (National Electrification Administration) – P1.922 billion
  • DOF-BTr (National Housing Authority) – P1.399 billion
  • Department of Agrarian Reform – P900 million
  • DPWH-Regional Office 1 – P759.362 million
  • Department of Health – P745.926 million
  • Department of Energy-Provincial Government of Palawan – P560 million
  • DOE – P550 million

Source: PNA

COA Investigates DBM's Alleged Unlawful Release of P38.8 B Malampaya Proceeds During Previous Admin COA Investigates DBM's Alleged Unlawful Release of P38.8 B Malampaya Proceeds During Previous Admin Reviewed by Phil Newsome on November 05, 2017 Rating: 5
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