The Commission on Audit (COA) has called out the Talisay City Government in Cebu for improperly charging millions in pesos worth of expenses to its Local Disaster Risk Reduction and Management Fund (LDRRMF). The state auditors found that from 2023 to 2024, the city used the fund designated for calamities for costs unrelated to disaster risk activities, violating national policies.
Traffic Center and Unauthorized Expenses
In its 2024 Audit Report, COA detailed a major irregularity: the city charged ₱20,944,241.93 to the LDRRMF in 2023 for the rehabilitation, repair, and installation of the Talisay City Traffic Communication and Command Center. This project, with a total contract cost of ₱24,992,802.41, was not included in the city's approved Local Disaster Risk Reduction and Management Plan (LDRRMP) for that year. A payment of ₱18,744,601.81 for this project was released on January 8, 2024.
Auditors also noted there was no record of a revised or supplemental LDRRMF Investment Plan submitted to the Sangguniang Panlungsod to justify this expenditure. The city's own Local Disaster Risk Reduction and Management Officer (LDRRMO) stated they were unaware the traffic command center project had been charged to the disaster fund.
Additional Questionable Charges in 2024
The audit uncovered further misuse in 2024, with an additional ₱5,708,568 in non-disaster related expenses charged to the LDRRMF. These included:
- ₱2,705,568 for salary differential and gratuity pay.
- ₱2,955,750 for rice assistance to barangay health workers.
- ₱47,250 for the LDRRMO's year-end evaluation.
COA emphasized that compensation-related expenses are strictly prohibited from being charged to the LDRRMF. Gratuity pay, under DBM Budget Circular 2024-8, must be sourced from available appropriations or surplus via a supplemental budget.
City's Defense and COA's Firm Rebuttal
During the exit conference, Talisay City officials defended the charges. They argued that the repairs to the traffic command center were part of disaster preparedness, claiming the CCTV cameras were damaged by Typhoon Odette and that the repairs were included in their disaster management plans.
For the 2024 personnel expenses, officials contended that the salary differential and gratuity pay were for responder personnel assigned to the LDRRMO, which they believed justified using the fund.
The Audit Team, however, firmly rejected these explanations. They countered that the city should have presented a revised or supplemental LDRRMP to verify its claim about the CCTV repairs. More critically, they reiterated that compensation-related expenses cannot be charged to the LDRRMF under any circumstance, regardless of where employees are assigned. Only costs directly linked to approved disaster-risk management activities are permissible.
COA has recommended that Talisay City immediately stop charging unauthorized expenses to the LDRRMF. It also urged the City Budget Office and the LDRRMO to settle the questioned costs and to ensure that only qualified activities are funded by the disaster reserve. This safeguard is crucial to prevent the depletion of funds earmarked for genuine calamities and emergencies.
