7.5. This requirement is further reinforced by Section 305 (a) of the RA No. 7160,
which states that “No money shall be paid out of the local treasury except in
pursuance of an appropriations ordinance or law.”
7.6. On April 5, 2023, the Municipality entered into a contract for the project entitled
“Concreting of Barangay Balili Road at Purok 5 to Purok 6,” with a total contract
cost of ₱1,391,537.64.
7.7. The Contractor and the Municipal Government reported the project as 100%
complete as of August 1, 2023, as reflected in the Statement of Work
Accomplished (SWA) and the Accomplishment/ Inspection Report, respectively.
These documents were attached to the final billing payment, which was covered by
Check No. 88476142 and Disbursement Voucher (DV) No. 100-2023-12-5349
dated December 13, 2023.
7.8. Furthermore, the Certificate of Completion and Certificate of Final Inspection,
both dated August 1, 2023, and prepared by the former Municipal Engineer,
certified that “the project has been satisfactorily completed in accordance with
plans and specifications of the contract.” (Emphasis supplied.)
7.9. The Program of Work prepared by the same Municipal Engineer explicitly stated
that the road concreting project was to be implemented from Purok 5 to Purok 6 in
Barangay Balili, Valencia, Negros Oriental. This was corroborated by the as-built
plan, which also indicated that the completed project was constructed in the same
area.
7.10. However, during an inspection on September 10, 2024, conducted by the
Technical Audit Specialist (TAS), it was discovered that the project was not
constructed at the approved location specified in both the original and as-built
plans. The TAS reported that the former Municipal Engineer acknowledged the
absence of a Deed of Donation for the right-of-way at the intended location, which
had prevented the project’s implementation at the site. Despite this, and without
securing the necessary revisions to the Program of Work and seeking a re-
appropriation of funds, Management decided to proceed with the project at an
alternative location within the general vicinity of Purok 5 to Purok 6, since the
contract had already been awarded. This deviation was later confirmed by the
current Municipal Engineer during a telephone inquiry.
7.11. Based on the foregoing, it is evident that the original plan for the road concreting
project, covered by an appropriation of ₱1,500,000.00, was not implemented as
intended. Conversely, the project that was actually completed and inspected on
September 10, 2024, was executed at a location not covered by the approved
appropriation and, therefore, lacked the necessary legal basis for public
disbursements.
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