COA Confirms Disallowance of Dengue Fund Usage in Laoag City
The Commission on Audit (COA) has upheld its notice of disallowance regarding the use of funds by Laoag City officials in Ilocos Norte. The controversy revolves around the improper spending of P3.183 million from the city’s Quick Response Fund for purchasing chemicals used in dengue fumigation back in 2019.
Former Laoag City mayor Michael Marcos Keon, along with four other local officials, challenged COA’s decision. They filed a petition for review, contesting the disallowance notice numbered 20-042-100, which questioned the P3,183,000 payment for Cyfluthrin W and Temephos chemicals. These chemicals were procured from Fharoyo Trading on October 15, 2019, and were intended to control the spread of dengue.
Improper Use of Quick Response Fund
COA’s notice found that the payment made from the city’s Quick Response Fund (QRF) violated existing laws and regulations governing the use of the Disaster Risk Reduction and Management Fund (DRRMF) allocated to local government units. Specifically, Laoag City had not been declared under a state of calamity by the President, the provincial council, or the city council. COA emphasized that the declaration of a national epidemic does not equate to a state of calamity, which is a prerequisite for utilizing the QRF.
In his appeal, Keon cited that the Ilocos Region exceeded the dengue alert threshold with 4,396 cases. The city itself reportedly recorded 442 confirmed dengue cases and one fatality from January to September 10, 2019. He stressed that the procurement was executed in good faith to protect public health.
COA Denies Petition and Orders Further Investigation
Despite these explanations, COA dismissed the petition, concluding that the city officials failed to justify the release and use of its Quick Response Fund for the chemical payments. As a result, COA directed its Prosecution and Litigation Office to evaluate the case and, if warranted, forward it to the Office of the Ombudsman for investigation and possible filing of charges against those responsible.
The decision, spanning nine pages, was signed by COA Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana. Local experts note that this ruling reinforces the strict guidelines on the proper use of disaster funds and serves as a reminder for government units to adhere to the legal processes when addressing public health emergencies.
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