Solon eyes return of government pre-auditing

MANILA, Oct. 6 (PNA) PNA) – Senator Aquilino Pimentel, Jr. will study proposing a measure on reviving pre-audit of government agencies.

He said this will promote transparency in government transactions and help people monitor status of public investments, particularly in the United States which continues to reel from financial woes.

”We no longer have pre-auditing so maybe reviving this function is worth looking into,” he said on the side of Kapihan sa Sulo forum.

Article IX-D of the 1987 Philippine Constitution gives Commission on Audit (COA) “the power, authority, and duty to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property, owned or held in trust by, or pertaining to, the Government, or any of its subdivisions, agencies, or instrumentalities, including government-owned or controlled corporations with original charters.”

The Constitution also requires COA to undertake such tasks on post-audit basis for “(a) constitutional bodies, commissions and offices that have been granted fiscal autonomy under this Constitution; (b) autonomous state colleges and universities; (c) other government-owned or controlled corporations and their subsidiaries; and (d) such non-governmental entities receiving subsidy or equity, directly or indirectly, from or through the Government, which are required by law or the granting institution to submit to such audit as a condition of subsidy or equity.”

However, Pimentel considers post-auditing insufficient in promoting transparency as he pointed out irregularities are discovered after funds have been moved.

”Funds could have vanished already even before post-auditing is done and if this happens, it’ll be very difficult to recover such money,” he said.

He noted pre-auditing will help “put in the checks."

The Constitution clarified that “where the internal control system of the audited agencies is inadequate, the Commission may adopt such measures, including temporary or special pre-audit, as are necessary and appropriate to correct the deficiencies. It shall keep the general accounts of the Government and, for such period as may be provided by law, preserve the vouchers and other supporting papers pertaining thereto.”

Pimentel indicated interest in looking into possible pre-auditing for all public agencies, however.

Clamor continued for government agencies to disclose respective investments as there is fear part of these might be lodged in US companies that either hit rock bottom already or are nearing collapse.

Pimentel is supporting such call, noting government agencies are duty-bound to make the disclosure.