GMA overshot 2009 travel budget by P696 million

MANILA
, Philippines - Former President Gloria Macapagal-Arroyo and those who accompanied her on local and foreign trips overshot her travel budget for 2009 by over P696 million, a Commission on Audit (COA) report bared yesterday.

The Office of the President spent almost P1 billion, or 284 percent more than what was appropriated under Republic Act 9524.

Of the amount, P848.1 million was used for foreign travels including trips to Vancouver in Canada and Washington and New York in the US on July 29, 2009 to Aug. 5, 2009, which alone incurred expenses totaling P69.6 million.

The COA report said travel was among the “highly financed” programs of the Office of the President in 2009 considering that the budget for this under the General Appropriations Act (GAA) was only P244.6 million.

The COA report said that the Office of the President’s actual disbursements for Arroyo and her party’s traveling expenses reached P940,643,778.23, including unliquidated cash advances.

The report showed that the excess amount used for the local and foreign trips was sourced from augmentation from the General and Administration and Support Services Program of Malacañang and from the contingent fund which is, after all, allowed under the 2009 GAA.

State auditors said Arroyo and her party’s travel expenses last year used up to 29 percent of the total funds received from the Department of Budget and Management (DBM) in the amount of P3,230,801,921.74.

Entourage galore

The COA report said those who accompanied the President on a foreign visit usually reached 60 people on average, which leads to the observation that “trimming the members of the delegation may greatly reduce the total travel expenses.”

State auditors said members of the party accompanying a President on foreign visits may be classified into non-paying and paying members and that the latter were required to refund or return to the Office of the President their personal traveling expenses.

“We noted, however, that most of the paying members do not reimburse the OP funds spent for their travel. The total collections received from the refunds/payments of the paying members of the delegation were not reflected as a deduction to the Traveling Expenses account,” COA said.

“Verification revealed that OP does not set up a receivable account upon sending bills to paying members, thus collection could not be properly monitored. Notwithstanding the authorized augmentation for travel expenses, some of the urgent and mandatory expenditures have been imperiled,” the audit report reads.

Costly travel

Under the category of “Unsettled suspensions and disallowances on foreign Presidential visits/travels,” the COA report revealed how Malacañang actually spent P848.1 million for Arroyo’s foreign travels.

Records show that the biggest chunk amounting to P422,105,968.55 was used for “Charter Lease,” which includes lease of aircraft for the various foreign visits of the President.

The cost of the charter lease included the cost of fuel, oil and other maintenance of the aircraft, landing fees, hangar fees, dispatch cost and other ground handling cost of the aircraft, salaries, flight pay and per diem for the crew and selected ground personnel during the flight and during the stay on the ground at intermediate stations.

The COA report said P75,873,910.14 was spent for hotel expenses; P70,709,692.30 for gratuities; P63,774,644.99 for transportation; P56,436,105.14 for airfare; and P28,993,409.98 for the per diem of the members of the delegation.

The rest of the amount was used for other expenses like meals (P14,406,459.66); supplies (P2,437,629.65); rental (P6,676,607.65); honorarium (P38,776.00); communication (P1,099,720.57); translator’s fees (P1,293,928.28); representation (P7,165,054.44); and miscellaneous (P902,641.34).

Justification

The COA recommended in the same report that the Executive Secretary minimize the use of contingent fund for travel purposes, although such is allowed as one of its purposes.

State auditors said the official who approves travel orders should adopt measures on the selection of members in the delegation to the President’s foreign travels with the mission that will be proportionate to the different activities of the government.

It also called on the chief of the finance office to set up a billing system to handle the billings on the paying members of the delegation.

Lastly, the COA report advised the chief accountant to adjust the traveling expenses account for the payment of the paying members of the delegation.

In its comments, the Office of the President said the traveling expenses for 2009 were indeed sourced from the regular MOOE (Maintenance and Other Operating Expenses) of the Office of the President and from the contingent fund.

Malacañang explained that augmentation is authorized under the General Provision of the GAA which states that “agencies may augment any item of expenditures within MOOE, except confidential and intelligence funds, from savings in other items of MOOE without prior approval of the DBM.”

“Rest assured that all members of the delegation during foreign presidential travels were all covered with approved travel authorities. The participation of all members of the delegation was essential to the visit and had official involvement in the activities of the places visited,” the Office of the President said.

Michael Punongbayan, Philippine Star