The Commission on Audit (COA) has caught the Marikina City government siphoning off calamity funds for purposes not provided under the law.

State auditors said at least P10.3 million was illegally spent by city officials even in the absence of a declaration of a state of calamity in the city or a portion of its territory last year.

This is contained in the 2008 annual audit report released recently by COA Director Rolando Rey.

The report also assailed the administration of Mayor Ma. Lourdes Fernando for withholding the release of P46.2 million share of 16 barangay units from real property tax and community tax collections of the city government.

The COA ordered the city government to return the P10.3 million calamity fund it spent for non-calamity related programs.

Government audit examiners explained that under Republic Act 8185, all local government units are directed to allocate 5 percent of the total annual budget to finance relief, reconstruction and rehabilitation efforts during times of calamities.

Before the calamity fund can be touched, legislative bodies of LGUs must first determine and declare a state of calamity affecting the whole territorial jurisdiction or a portion of the locality affected by natural or man-made disasters.

In examining Marikina City’s annual expenditure for 2008, state auditors noted that Calamity Fund amounting to P10.30 million was utilized for purposes other than those provided by law.

They noted that P49,980 was spent for payment of salaries and wages; P151,525 for ready-mix concrete; P250,000 for rice subsidy for employees; and P9,853,044.53 for thermoplastic lane remarking.

“Examination of the documents revealed that the aforementioned expenses were charged to the said fund although not related to disaster or calamity, thus, casting doubt on the legality and validity of the transaction,” the COA report stated.

When asked about the expenditure, Fernando and the city accountant failed to justify the expenses.

In the report, the state audit agency scolded the city government for failing to “automatically release” tax collection shares of 165 barangays, saying that this violated Section 271 of the Local Government Code.

Citing the law, audit examiners said real property and community tax collections accruing to barangay units in Marikina City should be transferred to their depository banks within five days after the end of each quarter.