04 JULY 2019

A6 NEWS
Thursday, 4 July 2019
Daily Tribune
DILG’s odd contracts flagged
P43 million airfare for local and foreign travels
paid by central office were obtained through direct
booking which deprived the government of the
chance to avail of eight to nine percent discounts
From page A1
noted five regional DILG
offices along with the central
office did not comply with
the implementing rules and
regulations of RA 9184 in
procuring several items.
CoA said the central office
spent P2.9 million for the payment
of fuel, oil and lubricants through
reimbursement; P43.08 million
for airfare payments through
direct booking from airlines
or travel agency and P4.024
million advance payments to
contractors.
State auditors observed
P4.6 million for training
requirements were not
specified.
The audit agency emphasized
that the P43 million airfare for
local and foreign travels paid
by central office were obtained
through direct booking which
deprived the government of the
chance to avail of eight to nine
percent discounts which would
have resulted in P3.4 million
savings.
Unspecified expenses
Meanwhile, state auditors
observed P4.6 million for
training requirements were
not specified in the project
procurement management
plan and P1.75 million
were through inappropriate
mode of procurement
made by DILG-Cordillera
Administrative Region.
For DILG Region IV-B, CoA
noted P109,670 expenses for small
value procurement for the repairs
and maintenance.
DILG Region V also awarded
P2,661,176.50 worth of contract
to a supplier with expired
certificate of registration
in Philippine Government
Electronic Procurement System.
DILG Region V also signed
P4.6 million worth of contract
beyond the bid validity period,
while performance scrutiny was
posted beyond a prescribed time
and the process took longer than
the maximum period.
The audit agency also
disclosed P9.5 billion
unliquidated fund transfers
to various government
agencies.
CoA also flagged the same
regional office for P1.06 million
worth of subcontract arrangement
and P303,694 purchases made
through reimbursement.
Documents missing
DILG Region IX has also
spent P400,000 through
an undetermined mode of
procurement and it lacks eligible
documents and post-qualification
bid process. CoA also noted that
its procurement process from bid
opening to awarding was done in
just a day.
Meanwhile, DILG Region X
released P498,810 for inexpensive
suppliers and hotels but the
procurement lacked Request for
Quotations.
CoA told DILG to follow
the procurement process and
procedures provided by the law.
On its part, DILG’s central
office justified that only
P283,793.42 was paid for the
fuel, oil and lubricant out of the
petty cash fund.
It also explained that the
recommendations made by CoA
are impossible to implement
in 2019 as the bidding process
may take 136 days maximum
and these recommendations
can be implemented in 2020
“subject to Early Procurement
Activity” on the last quarter of
this year.
Fund transfers queried
Aside from irregular
procurements, the audit agency
also disclosed P9.5 billion
unliquidated fund transfers to
various government agencies,
local government units and
government-owned and
controlled corporations. Of the
said amount, P1,699,518,600.25
remained unliquidated in the
year 2018.
Five regional DILG offices
along with the central
office did not comply with
the implementing rules and
regulations of RA 9184 in
procuring several items.
CoA disclosed that the
Social Housing Finance Corp.
has the highest amount of
unliquidated funds with P350
million, P278 million for
Region V and P213 million
transferred to National
Housing Authority.
The Presidential
Commission for the Urban
Poor has also P199 million
unliquidated funds together
with Local Government
Authority with P85 million,
Bureau of Fire Protection
with P39 million and the
Presidential Communications
and Operations Office P12
million to specify some.
DILG was told to strictly
monitor and enforce the
liquidation of the said fund
transfers.
The agency was also advised
to require the implementing
agencies to refund the
unspent balance for completed
undertakings and for cancelled
projects. CoA said that DILG has
agreed to the recommendations.
Hananeel Bordey
It’s a free country This Baguio City native appears to be doing the tai chi in his Sunday suit but then again it is anyone’s guess.
Country moving towards an aging
society, according to PIDS study
From page A1
these free public services such as free
healthcare, free basic education, as well
as free college education. But these paying
consumers will grow old and someone else will
have to pay for these freebies in the future,”
Abrigo expounded.
Abrigo said the rising number of old people
may pose a heavy burden on the country’s
resources.
“He was, however, quick to add that the
same economic and demographic forces that
will eventually lead to population aging also
provide potentials for economic growth.
Aging not bad
“Population aging is not a bad thing. It
represents a story of our collective success
as Filipinos. It means that we were able
to conquer the challenges such as those
related to income, health and education,” he
explained.
Still, it comes with both challenges
and prospects. The government, he noted,
is particularly affected as
Noon heat A fruit vendor’s sales zoom parallel to the
temperature at lunch time.
ROMAN PROSPERO
Rude interruption Long walk resulted in flipflop of a boy to give up as a companion tells him to hurry up to get their haul of the day to the nearest junk shop.
Sweetspot narrowing
income tax, health insurance premiums and
pension contributions, as a proportion of
the total population, may decline as a result
of the demographic shift. This, in turn, may
affect the sustainability of services that the
government provides.
The country’s favorable demography has
contributed to growth but “dividends may
be weakened or even negated by existing
economic conditions,” according to the study.
It highlights that while demographic
dividends pose potentials for growth, these
are not automatic, but instead rely on
various enabling conditions. “Public policy
is therefore important in ensuring that such
enabling conditions are available,” it said.
“Affirmative actions by government, such
as direct cash transfers, may be necessary to
ensure that no population get left behind,”
it said.
We will approach being an ‘aged
society’ when the share of the
elderly population is already at least
14 percent by 2069.
“The government has made great
strides on some aspects, particularly on
promoting human capital investments,
including ensuring that children are able
to attend school and receive necessary
healthcare,” it said.
It noted the challenge is in
making certain the continuity
of these programs. Still, in other
facets, like in stimulating greater
household saving or investment,
there may be greater room for
growth.
Higher savings, investments
“More elderly people means
more subsidies for healthcare
expenses. Moreover, the elderly
tend to have medical conditions
that are more expensive on the
average,” Abrigo said.
On the other hand, aging, along
with rising life expectancy, also leads
ROMAN PROSPERO
to higher savings and investment, hence,
may result in faster economic growth and
improved living standards. “Because we
expect longer lifespan, we also tend to save
more, and this leads to greater productivity,”
he elaborated.
Abrigo maintained that demographic
dividends are just growth potentials and are
not automatic as people still need to work
to attain them.
Affirmative actions by government,
such as direct cash transfers, may be
necessary.
The study warned that public transfer
programs could lead to unsustainable
public debt burden in the longer term,
especially when changes in the population
age distribution, particularly population
aging, are taken into account.
Debt may rise
Public debt, it noted, could increase to
P29.4 trillion by 2030 from P6 trillion in 2015
and could reach 100 percent of the country’s
primary income by 2060.
Abrigo said the government should not
only look at income inequality but also at
generational equity.
Likewise, he cautioned that the potentials
of having a fast-growing working population
may be rendered irrelevant if people
cannot be productively employed. Thus, he
recommended that public policies promoting
economic growth and employment be put in
place.
Chito Lozada
Kiss for Copa
From page A1
Alegre on Wednesday and Stephanie Cayo has
promised to kiss the player who wins the match
for her country.
“We want to give a kiss to the Peru national
team. I’m seriously thinking about offering a
kiss (obviously with permission) to whoever is
responsible for beating
Chile on Wednesday,” the
31-year-old actress wrote
on Twitter to her almost
800,000 followers.
That generated 8,000
likes and more than 7,000
comments.
Cayo is a soap actress
and singer who is wellknown
in both Peru and
Colombia.
She’s currently
starring in the Netflix
series “Club de Cuervos”
(crows club).
She added on
Instagram that she was
“offering my grain of
sand” towards a Peru
victory.
Peru have won the
Copa America twice
before in 1939 and 1975
and this is the third time
in the last four editions
that they have reached
the semi-finals.
Chile have won the
last two Copa editions,
on home soil in 2015
and then the Centenario
tournament in the United
States a year later.
The semi-final
winners will play either
hosts Brazil or Argentina
in Sunday’s final at the
Maracana in Rio de
Janeiro. AFP
ROMAN PROSPERO