Camiguin Gov. Jesus Jardin Romualdo has now ordered the investigation of the brutal murder of a lady barangay official who was stabbed 10 times in front of her son inside the victim’s home Friday evening.

He vowed that justice will be served to those who were behind the death of 52-year old Antonia Obsid Cuizon, first kagawad of Barangay Baknit, Sagay, Camiguin.

“We will do everything we can to find the suspects,” he told Gold Star Daily yesterday.

Barangay Baknit chairperson Eleuterio Ubanto and Sagay Police Station investigating officer SPO4 Olinar Lozada reported in separate radio interviews that three unidentified suspects entered the victim’s house around 7:30 in the evening last Friday.

Ubanto said two of the three men disguised themselves as friends of Cuizon’s older son Marvin and inquired from the victim if she was Antonia Cuizon.

When the victim confirmed this, the two men immediate took hold of her two arms while a third man stabbed her 10 times in the presence of the victim’s son 17-year old son Virgiliano Cuizon , Jr., he said.

Ubanto said the victim’s son tried to do everything he can but escaped from the crime scene and went to call for help when he saw there were three men armed and was told by her mother to run.

“We immediately responded but the suspects already fled,” he said adding that the police only arrived around 10:00 in the evening as the Cuizon’s home is located in a far-flung area.

Ubanto said Cuizon was still alive when they rushed her to the Catarman District Hospital but later expired after requesting him to take care of her children.

Lozada said their initial investigations revealed that the suspects were around 20-25 years old and that two of them were armed with what was described by the Cuizon’s son as .38 caliber pistols.

He said the third man had an ice pick which was used to stab the victim with one stab wound landing close to her heart.

Lozada said they are eyeing the possibility that it was the Cuizon’s husband who was behind her murder.

He said Cuizon was actually from Cebu City and was married to Virgiliano Cuizon, Sr. a seaman who went abroad and left his family.

As Cuizon’s husband no longer sent any money to support his family and took in a mistress instead, she transferred to Barangay Baknit, Sagay, Camiguin with her sons and filed adultery charges against the latter, he added.

Ubanto who claimed to be a cousin to Cuizon said he too suspects that it might be Cuizon’s husband who might be behind the murder or the latter’s mistress.

Victims : forty-two (42) families
Case : a criminal case of illegal occupancy in Mantigue Island
A family (Pedro,Felipa,Maria Luz,Danilo) was served a warrant of arrest August 8, 2008 but posted bail a bond of Php4,000./person for their release. Of the 3 children one was dead already a year ago (Gaspar) but still included in the warrant of arrest.
There are 24 families residing in the island with pending warrants of arrest from the municipal government of Mahinog.

Background:

The 4.4 hectare Mantigue island is part of the municipality of Mahinog. It was occupied by migrants from Bohol in the early 1950’s. The oldest occupant is Luisa Pladias who is 89 years old. Their means of living to support their families is by fishing, growing seaweeds(guso), and getting seashells. A family has a generator to supply electricity to some families from 6 to 9pm only. At the beginning there were just few families but they grew through the years. Of late there are forty-two(42) households with about three hundred (300) population in Mantigue Island. A Kagawad resides in the island. Julito Portrias is the current Kagawad, but his father Teofilo Portrias was also a former Kagawad in the island.

A complete elementary school (Grades 1 to 6) is found in the island, but the teachers come from Mahinog who come to the island early Monday and leaves Friday afternoon. There exist a Catholic chapel named in honor of their patron saint Our Mother of Perpetual Help, as it is part of the St. Michael Parish of Mahinog.

In 1987 then DENR Secretary Fulgencio Facturan Jr. declared the island as alienable and disposable land and therefore it is fit for titling or ownership. In March 16,1998 DENR Secretary Victor Ramos issued Administrative Order 98-13 reverting Mantigue Island’s category to forest land.

The local government unit of Mahinog together with the provincial government of Camiguin are hell bent to make Mantigue island a tourist destination, as it is part of the master tourism plan of the province to be a top eco-tourism destination. Hence they considered the residents of the island as illegal occupants, offered them a relocation site in Brgy. San Roque, with each family to be given a sack of rice, plus five thousand pesos (Php 5,000.-) and a 10 day carpenter assistance. For families who will opt to transfer outside the relocation site each family will be given Php 10,000. The affected families will be provided livelihood assistance. The local government of Mahinog has allocated Php 400,000.- for said relocation project. (source: flyer prepared by Jorie C. Valcorza PIA MisOr)

However in an interview with the victims revealed : that only a half sack rice was given to each family of the 8 families who volunteered to leave the island and went to the relocation site, and only five (5) days carpenter assistance, contrary to the promise of a sack of rice, and 10-day carpenter assistance. Hence the families who volunteered felt they were duped, in fact some of them went back to the island and are staying with their relatives. Due to fear of receiving a warrant of arrest, there are seven (7) more families who volunteered to leave but are still there in the island waiting for their relocation and assistance.

What is inspiring is the unified stand of the 24 families with warrant of arrest who expressed their resistance to leave the island. They said they will not leave because the island is their source of livelihood, most of them were born there, established relationships with people and with nature. They also found out that in the relocation site there are no livelihood opportunities for them. Hence the families who were relocated first are still going back and forth to the island to look for livelihood opportunities to support their families.

Stop the eviction of the families in Mantigue Island. Provide livelihood opportunities !

————-

Fact Sheet

Date : October 29, 2008

Case : Arrest, Harassment

Victims : 42 adults & 22 children from Mantigue Island

Perpetrators : Mahinog Police Force led by the Chief of Police & CVOs

Incident :

At about 2 am residents of the island were awakened when they heard a motor boat that docked, and when they peeped from their windows, they saw a group of uniformed policemen. They dispersed themselves around the island, then at 4am another motorboat of the Task Force Bantay Dagat docked with another group of uniformed policemen accompanied by ten (10) CVOs from Mahinog. At about 6am the big Bantay Dagat boat arrived at the island with another group of policemen with another 10 CVOs. All in all twenty-two (22) policemen surrounded the houses of the residents. Their leader was the Chief of Police Bryan Inojaldo; his companions : SPO Allan Estrobo, SPO Silverio Galacio,SPO Joey Labadan, SPO Zagado, SPO Tabamo, SPO Tagaylo, SPO Linaban, SPO Flores, a policewoman and the rest of the police force, the residents couldn’t identify their names. They went from one house to another to serve the warrant, inviting them to go with them in the three boats, as they will be brought to the office of the judge. At first they resisted, but due to fear they brought along their infants, toddlers, clothes placed in plastic bags, some brought bed sheets, mats, thermos bottle containing hot water for their infants being bottle fed, etc. Others did not bring anything, just the clothes being worn. Some families left their adolescent children to take care of their house in their absence, but some have nobody left in their abode. Three(3) policemen were left in the island, the rest accompanied the arrested island residents.

At about 10am the Bantay Dagat big boat arrived at the Benoni pier, a police car already waited, and the arrested residents were brought to the municipal gymnasium. Five (5) policemen controlled the gate of the gymnasium keeping eye on the arrested residents. An employee from the Municipal DSWD got in to list down the under age children of the arrested residents. The arrested residents were hungry, hoping the policemen will give them lunch. But until 1:30pm no sign that they will be given food, so a relative of one of the arrested was generous enough to bring them cooked rice, and another generous person bought “ginamos” to go with the cooked rice. What was disturbing was the presence of a suspicious frail adolescent guy about 15 years of age, who kept taking pictures, and when asked who he was and who asked him to do it, he readily answered the Chief of Police requested him to do it, that he was a prisoner, and his name – Marvin Babia. After my interrogation, he never showed himself, instead a policeman held the camera.

Another policeman told them to transfer to the Senior Citizen’s Building as the gymnasium will be used for a program at 1 pm. Upon arrival to the said building, they found out, it was so small to accommodate the big group. The unanimous decision of the group was to stay at the street, until the judge decides to release them as promised.

Brief Background

October 28, 2008 at 2:30pm Sr.M. Francis Añover,RSM filed a document entitled Motion for Bail on Recognizance to the office of the Municipal Judge of Mahinog. It was stamped received and signed by the clerk. That document was also signed with No Objection by the Provincial Prosecutor Alma Concepcion Parreno of the Bulwagan Ng Katarungan Mambajao on the same date.

It was explained by the judge to Sr.M. Francis that once the Motion for Bail on Recognizance will be signed with No Objection by the Provincial Prosecutor he will take that into consideration, will lift the financial bail of the accused, and the warrant of arrest will not be served anymore. That good news was relayed to the Mantigue residents by Sr.M. Francis. Hence it was a big surprise why they were arrested. Again when Sr.M. Francis asked the judge October 29 at 10:30am in his office, his reply was the Motion …. should have contained Teofilo Portrias et als (plural) and that the criminal case numbers from 2074-2099 should have been mentioned to include all the accused and their cases. Immediately the group’s lawyer was informed to do it, or else they will not be released. The lawyer who resides in Cagayan de Oro then decided to see his clients and meet the judge. As of this writing no updates yet .

Five residents of Mantigue approached the office of Sr.M. Francis Añover,RSM of Fatima College of Camiguin seeking help for their plight, only to discover that some of them have sent their children to FCC to study and have finished a college course. Some of them (especially their faces/countenance) have been familiar to Sr.M. Francis as they are vendors of sea shells, seaweeds known as guso and fish in Mambajao where she sometimes accompany the convent girls to buy at the market.

by: Sr.M. Francis Añover,RSM
5:00pm
October 29, 2008

—————–
Fact Sheet

Victims : forty-two (42) families

Case : a criminal case of illegal occupancy in Mantigue Island

A family (Pedro,Felipa,Maria Luz,Danilo) was served a warrant of arrest August 8, 2008 but posted bail a bond of Php4,000./person for their release. Of the 3 children one was dead already a year ago (Gaspar) but still included in the warrant of arrest.

There are 24 families residing in the island with pending warrants of arrest from the municipal government of Mahinog.

Background:

The 4.4 hectare Mantigue island is part of the municipality of Mahinog. It was occupied by migrants from Bohol in the early 1950’s. The oldest occupant is Luisa Pladias who is 89 years old. Their means of living to support their families is by fishing, growing seaweeds(guso), and getting seashells. A family has a generator to supply electricity to some families from 6 to 9pm only. At the beginning there were just few families but they grew through the years. Of late there are forty-two(42) households with about three hundred (300) population in Mantigue Island. A Kagawad resides in the island. Julito Portrias is the current Kagawad, but his father Teofilo Portrias was also a former Kagawad in the island.

A complete elementary school (Grades 1 to 6) is found in the island, but the teachers come from Mahinog who come to the island early Monday and leaves Friday afternoon. There exist a Catholic chapel named in honor of their patron saint Our Mother of Perpetual Help, as it is part of the St. Michael Parish of Mahinog.

In 1987 then DENR Secretary Fulgencio Facturan Jr. declared the island as alienable and disposable land and therefore it is fit for titling or ownership. In March 16,1998 DENR Secretary Victor Ramos issued Administrative Order 98-13 reverting Mantigue Island’s category to forest land.

The local government unit of Mahinog together with the provincial government of Camiguin are hell bent to make Mantigue island a tourist destination, as it is part of the master tourism plan of the province to be a top eco-tourism destination. Hence they considered the residents of the island as illegal occupants, offered them a relocation site in Brgy. San Roque, with each family to be given a sack of rice, plus five thousand pesos (Php 5,000.-) and a 10 day carpenter assistance. For families who will opt to transfer outside the relocation site each family will be given Php 10,000. The affected families will be provided livelihood assistance. The local government of Mahinog has allocated Php 400,000.- for said relocation project. (source: flyer prepared by Jorie C. Valcorza PIA MisOr)

However in an interview with the victims revealed : that only a half sack rice was given to each family of the 8 families who volunteered to leave the island and went to the relocation site, and only five (5) days carpenter assistance, contrary to the promise of a sack of rice, and 10-day carpenter assistance. Hence the families who volunteered felt they were duped, in fact some of them went back to the island and are staying with their relatives. Due to fear of receiving a warrant of arrest, there are seven (7) more families who volunteered to leave but are still there in the island waiting for their relocation and assistance.

What is inspiring is the unified stand of the 24 families with warrant of arrest who expressed their resistance to leave the island. They said they will not leave because the island is their source of livelihood, most of them were born there, established relationships with people and with nature. They also found out that in the relocation site there are no livelihood opportunities for them. Hence the families who were relocated first are still going back and forth to the island to look for livelihood opportunities to support their families.

Stop the eviction of the families in Mantigue Island. Provide livelihood opportunities !

by: Sr.M. Francis Añover,RSM
5:00pm
October 29, 2008

==============

Mantigue residents (among the 24 families with warrant of arrest ) present during the interview August 31, 2008 @ 9am RSM Convent Mahinog, Camiguin

1.

Mrs. Conchita Saturos 52 yrs. old /husband Cirilo 54 yrs old with 9 children
2.

Alfredo Portrias 55 yrs. old
3.

Mila –wife of Alfredo Portrias 52 yrs. old with 6 children
4.

Yolanda Portrias 50 yrs. old/Alfonso –husband with 6 children
5.

Hazel Portrias 17 yrs. old daughter of Alfredo & Mila

================

Volunteered to leave Mantigue Island received 5,000 pesos, half sack rice & 5 day carpenter assistance

1.

Benjamin Portrias now living in Litikan San Roque
2.

Bonifacio Pabillore
3.

Vicente Umbria
4.

Jeffrey Ballado
5.

Jovito Portrias
6.

Leoanrdo Pabillore
7.

Peter Pabillore
8.

Pablo Portabis

Documented by: Sr.M. Francis Añover,RSM

Document sent to * www.bulatlat.com (Aug. 31)

Republic of the Philippines

Municipal Circuit Court

Mahinog & Guinsiliban

Mahinog, Camiguin

People of the Philippines CRIM. CASE no. 2067

Plaintiff

vs.

Pedro Portrias,Felipa Portrias For: Violation of Section 69

Danilo Portrias, Maria Luz Portrias Presidential Decree No. 1559

Gaspar Portrias

Accused,

x……………………../

MOTION TO CONDUCT PRELIMINARY INVESTIGATION

COMES NOW, Accused through counsel unto the Honorable Court most respectfully move:

1.

That accused in this case were charged for violation of Sec. 69 of Presidential Decree No. 1559 as amended.

2.

That in the said law it provides in “Sec. 53 Criminal prosecution –Kaingeros, squatters, cultural minorities and other occupants who entered into forest lands and grazing lands before May 19, 1975, without permit or authority , shall not be prosecuted; provided that they do not increase their clearing; provided further that they undertake, within two(2) months from notice thereof the activities to be imposed upon calculated to conserve and protect forest resources in the area; Provided finally, the kaingeros, squatters, cultural minorities and other occupants shall whenever the best land use of the area so demands as determined by the Director, be ejected and relocated to the nearest accessible government resettlement area.”

3.

That in the instant case the accused where occupants of the area as early 1968 as evidence by the affidavit of former Municipal Mayor of Mahinog and forest occupancy survey note conducted by the employee of Bureau of Forest development marked as Annex “A”B” respectively;

4.

That the affidavit of the former mayor will show and proved that the people of Mantigue where authorized to stay and occupy in the area hence their stay is not illegal;

5.

That the alleged demand to vacate was not received by the herein accused;

6.

That in the instance case it is clear that there is no provable cause to the crime charged;

WHEREFORE PREMISES CONSIDERED, it is respectfully prayed to the Honorable Court, in the interest of justice to conduct the preliminary investigation in the instant case and on the subsequent cases filed by the Provincial Prosecutor’s Office.

Other relief are also prayed for under the circumstances.

Cagayan de Oro City, for Mahinog, Camiguin, August 22, 2008.

BANAAG LAW OFFICE

2ND Flr. GPL Banaag Bldg.

Pabayo Gomez Street

Cagayan de Oro City

By:

ATTY. GIL U. BANAL

Counsel for the Accused

PTR NO. 1665709 12-27-07

IBP NO. 706105 11-14-07

ROLL NO. 37946

MCLE No. II-0009141

NOTICE OF HEARING

THE CLERK OF COURT

Municipal Circuit Court

of Mahinog & Guinsiliban

Mahinog, Camiguin

GREETINGS:

Please take notice that the undersigned counsel will submit the foregoing motion for the Approval of the Honorable Court upon receipt hereof.

Sgd. ATTY. GIL U. BANAAG

CC:

ATTY. ALMA CONCEPCION M. PARRENO

Provincial Prosecutor’s Office

Mambajao, Camiguin Province

Stamped Received by the Provincial Prosecutor’s Office

Mambajao, Camiguin

8-26-08

====================================================

REPUBLIC OF THE PHILIPPINES Annex A

Municipality of Mahinog

Province of Camiguin

AFFIDAVIT

I, FELIPE G. KHO, of legal age, Filipino, married, and a resident of San Roque, Mahinog, Camiguin, after having been duly sworn to in accordance with law do herby depose say;

1.

That I was the Municipal Mayor of Mahinog, Camiguin for eighteen (18) consecutive years from 1968-1986.

2.

That sometime in 1968, I authorized a group of Boholanos headed by the late Ariston Sagarino, Florencio Portrias and Alfonso Portrias Sr. with Teofilo Portrias Sr. to occupy a portion of the island of Mantigue, this municipality.

3.

That in all baranggay political exercise, a resident of the island is always represented in baranggay San Roque, Mahinog as an elected official.

4.

That I executed this affidavit to attest the foregoing facts.

IN WITNESS HEREOF, I have hereunto affixed my signature this 5th day of March, 2008 at San Roque Mahinog.

Sgd. FELIPE KHO

Affiant

SUBSCRIBED AND SWORN to before me this 5th day of March 2008 in Cagayan de Oro City.

Sgd. ROSWALD JOSEPH J. PAGUE

Notary Public

PTR No. 1651839 9-11-08

IBP No. 708329 9-11-2008

TIN No. 926-988-168

Doc. No. 17

Page No. 4

Book No. 01

Series of 2008

Annex B

Republic of the Philippines

Ministry of Natural Resources

Bureau of Forest Development

Region x_ District No. 5_ Station _Mambajao_ Control Sector No._____

FOREST OCCUPANCY SURVEY

A. PERSONAL RECORD C. HOUSEHOLD FAMILY COMPOSITION

1. Name : Teofilo L. Portrias Name Relation Age Sex

2. Date of Birth March 5, 1941 Josephine daughter 19 F

3. Place of Birth Sondol, Loon Bohol Teofilo Jr. son 17 M

4. Sex – M Status Married Gemma daughter 15 F

5. Educational Attainment Julito son 13 M

Elementary Graduate Jovelin daughter 11 F

6. Ethnic Group – Boholano Jessel daughter 9 F

7. Actual Residence Joel son 7 M

8. Occupation –Fisherman Jacqueline daughter 4 F

9. Annual Income – Php 1,500.-

10. Other sources of income___

B. INFORMATION ON LAND OCCUPIED D. MEMBERSHIP IN ORGANIZATIONS

1. Location Mantigue, Mahinog 1. Do you plan to stay here permanently?

2. Camiguin __/__Yes ____No

3. Approximate area occupied______ 2. Are you willing to be resettled?

since 1965 _____Yes __/_No

4. Existing land use: timberland 3. State the reasons for unwillingness to be

5. Data of occupancy _______ resettled – I have learned to love the place

6. House : _/_ Permanent

___ Temporary E. What do you wish the government should

do to help you? That we will not be

7. Group Area No. Status

______ _______ ______ F. REMARKS

______ _______ ______ ________________________________

______ _______ ______ ________________________________

8.Other land ownership

Area:____ Location Loon, Bohol

I hereby certify the above statement as I hereby certify that I personally conducted

true and sworn freely declared by the the interview of the forest occupants referred

undersigned. to on July 23, 1985.

Sgd. Teofilo Portrias Sgd. Miguel A. Jaquilmac

Forest Guard

Witnessed by:

Sgd. Luciano A. Padilla

Municipal Councilor

Republic of the Philippines

Municipal Circuit Trial Court

Of Mahinog & Guinsiliban

Mahinog, Camiguin

People of the Philippines Crim. Case No. 2078

Plaintiff

Versus For:

Teofilo Portrias Violation of Section 69

Alfonso Portrias et.al of Presidential Decree 1559

Accused

x………………./

URGENT MOTION FOR BAIL ON RECOGNIZANCE

COMES NOW, Accused through counsel unto the Honorable Court most respectfully move

1.

That the bail bond recommended for the temporary liberty of each accused is P 1,000;

2.

That pursuant to Sec. 1 Rule 114 of Rules of Court, on Bail, it may be in the form of corporate security, property bond, cash deposit or recognizance;

3.

In view of the fact that several accused are involved in this case and most of them are indigents it is respectfully prayed that they be bail on recognizance by Sr.M. Francis Añover,RSM

4.

That accused in thsic ase promised to the Court that they will attend every hearing of this case;

WHEREFORE PREMISED CONSIDERED, it is respectfully prayed to the Honorable Court that all the accused be bail in recognizance by Sr.M. Francis Añover,RSM

Other relief are also prayed for under the circumstances.

Cagayan de Oro City for Mahinog Camiguin October 27, 2008

BANAAG LAW OFFICE

Counsel for Accused

2nd Floor GPL Banaag Bldg.

Pabayo Gomez St. Cagayan de Oro City

By:

ATTY. GIL U. BANAAG

IBP OR No. 706105(12-14-07) Misamis Oriental Chapter

PTR No. 1665701 (12-27-07 CDO

MCLE No. 11-0009141

NOTICE OF HEARING

Clerk of Court

MCTC – Mahinog-Guinsiliban

Mahinog, Camiguin

Greetings !

Please take notice that the undersigned counsel unto the Honorable Court submit this Urgent Motion for Bail on Recognizance for the consideration of the Honorable Court upon receipt thereof.

Sgd. Atty. Gil U. Banaag

cc: No objection ( handwriting)

Sgd. Atty Alma Concepcion M. Parreno

Provincial Prosecutor

Mambajao, Camiguin

Stamped received dated 10-28-2008 Stamped Received by the MCTC

By the Provincial Prosecutor Mahinog-Guinsiliban Court

10-28-2008 @ 2:30p.m.

Some 42 families were arrested for illegally squatting at a government owned property in Mantigue island, Mahinog which is set to be turned into a top eco-tourist destination by the Provincial Government of Camiguin.
In an email yesterday, Sr.M. Francis Añover, RSM gave a detailed description on how the families were thrown out of their homes as early as 2:00 a.m., rounded-up and then “illegally held” against their will inside the a gym last Wednesday.
She said local officials did not fulfill their promises when they offered the affected families a relocation site in Barangay San Roque, with each family to be given a sack of rice, P5,000 and a 10-day carpenter assistance as what was given was only a half sack rice for each family who left the island and went to the relocation site, and only five-day carpenter assistance.
According to Anover, the local officials also promised P10,000 and a livelihood assistance for all families who will opt to transfer to the relocation site but such were not received by those who went to new site.
“Hence the families who volunteered felt they were duped, in fact some of them went back to the island and are staying with their relatives,” she said in her e-mail to this paper.
She added that some of those arrested were served with warrants of arrests but have already posted bail.
But Camiguin former governor now Cong. Pedro Romualdo said they have long been requesting these families to vacate the 4.4 hectares of land which was declared as a protected area by the Department of Environment and Natural Resources.
He said he and his son incumbent Camiguin Governor Jesus Jardin had time and again tried to negotiate with these families to leave the area and allow the “fauna and flora to flourish” anew.
Romualdo said that these families were not actually from the place but were from the island of Bohol and are illegal settlers who are driving away rare wildlife species and bringing in waste in the area.
“Gahi gyud kana sila ug ulo mao kana gidakop sila (They are hard-headed and that is why they were arrested),” he told Gold Star Daily.

8. In view of the weak specific and monitoring controls, the Province has collected only P549,680 of the total loans receivable of P22,494,522.93 or has 2% efficiency rate in the collection of the SAIL and PNPL Loans thus casting doubts on the effectiveness of the program in the attainment of its objectives specifically on the religious repayment of loan for roll-over purposes and increase production of agricultural products.

The Operational Scheme of the PNPL Program states the basic features of the program which are the following:

Principle of credit as a fundamental right. Every deserving poor person should be given a fair chance to improve his/her economic condition by ensuring the privilege to credit.

Lending without collateral at zero interest rate

Small Loan, Small Repayment. This is a scheme aimed at alleviating poverty. To provide convenient means of living, small loan is offered to interested constituents to repay also in small and less burdensome amount depending on the capacity of the borrower to pay. No required amount of payment is demanded so long as it is done religiously for roll over purposes.

Moreover, in the project outline attached to the Annual Investment Plan (AIP), project objectives includes 1) to minimize the importation of vegetables being marketed in the locality from the mainland and 2) to be self sufficient in vegetable production.

Records showed that the Province has been extending no collateral loans to interested constituents since 1991. Funding of which was initially from the Spanish Assistance for Integrated Livelihood. In CY 2001 to 2002, the Department of Agriculture, Regional Office No. 10 and Southern Philippine Development Academy also provided funding for the said program. Then, starting in the year 2002, the Province provided funds for the PNPL program under the 20% Development Fund as follows:

CY 2002 P 1,400,000

CY 2003 1,600,000

CY 2004 1,000,000

CY 2005 500,000

CY 2006 500,000

Total P5,000,000

On Sept. 4, 1998, a Special Order was issued authorizing some personnel of the Provincial Agriculture Office to collect loan repayments. But, On May 19, 2005, the Provincial Governor has issued amendatory Office Order designating the Provincial Agriculturist as the accountable officer in the collection. However, the Provincial Agriculturist also designated its municipal coordinators as collectors of loans in their field assignments. Field collectors remitted collection to the Office Clerk assigned by the Provincial Agriculturist to prepare the consolidated Report of Collections and Deposits and to maintain the cashbook. Under this setup, late remittances of collections could not be directly associated to specific collector.

During the same period, Accounting Office did not maintain individual records of loan borrowers. Only the Office of the Provincial Agriculture maintained subsidiary records upon which the Provincial Accountant relied so much. At this instance, record keeping and collections was done by the same Office.

In the CY 2005 Annual Audit Report, it was recommended that the Provincial Treasurer’s Office intensify collections of the loans.

As of December 31, 2006, total collections of the Province for the Loans Receivable Account of P22,494,522.93 was only P549,680 leaving a collectible balance of 21,944,842.93. ( Annex 4)

The PNPL operational guidelines mentioned that “All PNPL Coordinators, Institutional Development coordinator and Community Organizers will have weekly meeting to update themselves on the updates of PNPL programs and other relevant information on PNPL.”

According to one PNPL coordinator, they have not followed the conduct of weekly meetings. Various problems they have encountered in collections includes the following:

Some borrowers claimed they have previous arrangement with the Local Chief Executive in the loan repayments thus, they would not pay.

PNPL coordinators are not provided with due financial support like reimbursement of traveling expenses in going to the barangays even actual transportation expenses. They could not afford to take the daily transportation expenses from their meager take home pays.

Some of the projects no longer existed thus, borrowers could no longer pay.

Some borrowers view government loans as dole-outs so they refuse to pay.

The above-stated problems have not been properly addressed so it contributed to the low repayment rate.

Section XI of the Operational Scheme mentioned that demand letters will be sent to borrowers who have not paid their loan after a given grace period of 6 months but it did not mention whose Office would do the job. Per inquiry, neither the Provincial Accounting Office nor the Provincial Agriculture Office has made the demand letters. However, the Provincial Accountant promised to inform the Local Chief Executive on the status of the loans receivable as of December 31, 2006.

In the actual operations, no independent office is assigned to review the records of the PNPL borrowers, confirm office records with the borrower’s record for correctness of collections and balances and no periodic reports was required on the status of the program.

Had borrowers paid their dues religiously, the amount of P5,000,000 appropriated in the years 2002-2006 would be enough seed money for the program.

Weak specific and monitoring controls in the implementation of the program resulted to 2% collection efficiency thus; attainment of the objectives specifically on the religious payment of loan for roll-over of the funds and the increase production of agricultural products could hardly be realized.

RECOMMENDATION:

For the above stated deficiencies, we recommend the following:

Designate the Municipal Coordinators as the accountable officer to establish his accountability for the collections received by him and to enable the auditor to pinpoint who among them are not remitting regularly. Let them maintain own cash books for their collections.

Designate responsible person who will monitor the project implementation and will prepare the monthly monitoring report which would include problems encountered in the field.

Issue Office Orders to person/office responsible for the issuance of demand letters to delinquent borrowers.

Issue Office Order to persons/office responsible for the reconciliation/confirmation of the records with the borrowers for proper monitoring of collections and balances.

7. The Province have not adequately planned their Annual Procurement because of the lack of coordination between offices which is contrary to the provision of Section 7 and 12 of the Implementing Rules and Regulations of Republic Act 9184 thus, numerous Purchase Request, Purchase Orders and supporting documents were prepared and processed daily resulting to tedious encoding of the inventories for the computerized accounting system notwithstanding the incurrence of more expenses for the office supplies used in printing the supporting documents.

As provided under Section 7 of the Implementing Rules and Regulations of Republic Act No. 9184, “Each procuring entity shall judiciously prepare, maintain and update an Annual Procurement Plan (APP) for all its procurement that shall include, for each individual project, a Project Procurement Management Plan (PPMP). No government procurement shall be undertaken unless it is in accordance with the approved Annual Procurement Plan (APP). The preparation and updating of the PPMPs shall be the responsibility of the respective Project Management Offices (PMOs) or end users while the consolidation of these PPMPs into an APP shall be lodged with the BAC Secretariat of that procuring entity. Meanwhile, Section 12 of the same act also states “ In proper cases, the BAC shall also recommend to the Head of the procuring entity the use of alternative methods of procurement as provided for in Rule XVI hereof. The BAC shall be responsible for ensuring that the procuring entity abides by the standards set forth by the Act and this IRR.

Per record of the Provincial General Services Officer, average Purchase Request (PR) and Purchase Orders (PO) received and processed per month are 154 and 165, respectively.(Annex 3) The province is composed of only 20 departments/offices. The figures suggested that the offices prepared at least 7 PRs per month. In the interview, the Provincial General Services Officer pointed out that implementing offices of projects did not prepare the Project Procurement Management Plan (PPMP). Purchase Request was prepared by requisitioning office as they wish. The Province has not set specific schedules for the submission of PRs for bulk procurement. While, they have prepared the procurement plan of office supplies, PRs were not checked against the submitted Annual Procurement Plan. Nobody was assigned to do the job. Such voluminous paper works could be avoided if each office could consolidate their office requirement in reduced no. of Purchase Request.

Scrutiny of the Disbursement Vouchers of the Province revealed numerous Purchase Orders were based on the shopping mode of procurement. Many of them are spare parts, medicines and drugs, laboratory supplies, and others. According to the Provincial General Services Officer (PGSO), Province did not adopt purchase from Procurement Service due to the distance and the cost that would be incurred in the travel. But, they have adopted public bidding for the purchase of regular office supplies, drugs, medicines, medical and laboratory supplies. Purchase Request charged to the projects under the 20% Development fund, Trust Funds and SEF were usually purchased thru the use of alternative methods of procurement except infrastructure projects. Selection as to what mode of procurement will be used is per PR and it was decided upon by the PGSO. They did not practice consolidating the PRs received. Conditions specified under the shopping mode of procurement were usually not considered in the selection.

On the other hand, Bids and Awards Committee (BAC) members complained that they would not be able to perform their regular functions if all the PRs would pass thru the BAC for the selection of mode of procurement.

Nevertheless, it is stated in Section 7.3 of Implementing Rules and Regulations of Republic Act No. 9184 that the PPMP shall include:

a) the type of contract to be employed,

b) the extent /size of contract scopes/packages;

c) procurement methods to be adopted

d) time schedule for each procurement activity

e) Estimated budget for the general components of the contract.

Based on the above-quoted regulation, selection of the mode of procurement would be done during the planning stage so it won’t really affect much their performance of regular functions.

The Head of the BAC Secretariat have reasoned out that their Office have not received any PPMP therefore nothing will be consolidated.

This condition resulted from the lack of coordination between the component offices of the Province.

RECOMMENDATION:

Require the project implementing office to prepare the PPMP to be submitted to BAC Secretariat for consolidation and incorporation in the Annual Procurement Program. Further, require PGSO to practice bulk procurement to economize in the cost of office supplies and to avoid the tedious encoding of the inventories in the computerized accounting system. Adherence to the provision or Section 7 and 12 of the Implementing Rules and Regulations of R.A. 9184 is hereby enjoined.

Pursuant to Section 7 of the Implementing rules and Regulations of Republic Act No. 9184, in infrastructure contract packages projects, the ABC shall cover the individual cost components of civil works only. The ABC for the contract shall be at all times consistent with the appropriations for the project authorized in the General Appropriations Act (GAA) and/or continuing appropriations. While Section 85 (1) of Presidential Decree No. 1445 also states “No contract involving the expenditure of public funds shall be entered into unless there is an appropriation therefore, the unexpended balance of which, free of other obligations, is sufficient to cover the proposed expenditure.

In CY 2005, the Improvement of Bonbon-Kilon-ac-Minocol road proposed by the Province as ADB Assisted Project for Agrarian Reform Communities was approved.

Proposed funding of the project would be derived from the following:

Loan Proceeds (ADB) P8,814,703.56

Gov’t of the Phils (GOP) 991,069.03

LGU Equity 2,910,710.24

Total P12, 716,482.83

The Approved Agency Estimate of the project was P10,811,662.20. Per Project Cost Summary, the cost is broken down as follows:

Direct cost

DAR-ADB-ARCP P 7,283,051.41

LGU Equity 1,726,667.09

Taxes (DAR-ADB-ARCP) 900,971.85

Profit (GOP) 900,971.85

Total P10,811,662.20

According to the Provincial Accountant and Provincial Engineer, the Province committed the following as LGU equity:

Cash Equity P 1,003,848.78

In Kind (Equipment

Utilization) 1,726,667.09

Contingency 180,194.37

Total P 2,910,710.24

In the Annual Appropriations of CY 2005, the Province appropriated the following for the above-mentioned project:

Non-Office P 339,000.00

20% Development Fund 500,000.00

Total P 839,000.00

The Provincial Treasurer opened an account with LBP for the LGU Equity in the amount of P839,000.00 October 25, 2005. Another deposit was made on April 12, 2006 in the amount of P1,300,000. The amount was taken from the Local Government Support and Equalization Fund (LGSEF) of the Trust fund which they intend to replenish, the Provincial Accountant said. Actual cash deposited totaled P2,139,000. The transfer was authorized by the Local Sanggunian as embodied in SP Resolution No. 103 Series of 2005 duly discussed during their Session on December 12, 2005. According to the Provincial Accountant, the receipt of the LGSEF Fund has no specific purpose and they just recorded it in the Trust Fund books ready to be used for augmentation of funds for other needed projects.

On the 21st day of October, 2005, the Province signed a Contract with L.G. Lasacar Construction the Improvement of Bonbon-Kilon-ac-Minocol road amounting to P10,775,412.27. The Provincial Engineer has reported completion of the project on July 30, 2006.

Review of the project plans and contract revealed the following:

The Project Cost Summary and Summary of Item Cost did not specify that LGU equity will be divided into in-kind and cash equity. In fact, LGU equity in the Summary of Item Cost is broken down as follows:

Materials P 1,553,816.83

Labor 67,088.90

Rental 105,761.36

P1,726,667.09

The Instruction to Bidders did mention that the LGU Equity in the amount of P1,726,667.09 which is part of the Approved Budget Cost (ABC) shall be in the form of Heavy/Light Equipment usage.

It was not also stated in the Contract Agreement for the Improvement of Bonbon-Kilon-ac-Minocol Road that the LGU Equity shall be in the form of Equipment usage.

Under the payment 3rd partial billing, the Provincial Accountant deducted the amount of P1,124,020.99 as in kind equity of the Province represented by the light/heavy equipment usage of the contractor. The deduction was opposed by the contractor on the ground that he was not duly informed about it. He expected to be paid in full of his accomplishment. Since, it was not duly stipulated in the contract and other supporting documents, the province could not adequately rebut the contractor’s allegations. The Office is not precluded to have an in-kind equity but it should be clearly communicated or agreed upon by both parties.

Meanwhile, the Province should have included the equipment usage they have pledged as LGU equity of the project in the estimated income and fully appropriated the said amount for the said purpose so that it would be recorded as part of the project cost.

RECOMMENDATION

Require the Provincial Budget Officer to prepare supplemental budget for the LGU equity. Adhere strictly to Section 84 and Section 85 (1) of P.D. 1445. In the future, LGU Equity which is part of the contract price and contemplated to be contributed in kind should be duly stipulated in the Contract and other supporting documents to avoid misunderstanding.

5. Individual debtors of loans funded from PNPL Loan repayments totaling P2,063,971.95 and PNPL-SAIL II/SPDA of P9,110.48 have remained unidentified as of year-end caused by the failure of the Accounting Office to create subsidiary ledger of loan recipients coupled with the absence of initiative of both the Provincial Accounting and Agriculture Offices to dig up previous disbursement voucher consequently its collection could not be effected.

Section 04.e of the National Government Accounting System (NGAS) Volume I requires the accounting unit to maintain the books of original and final entries which include maintenance of subsidiary ledgers.

In the prior years audit recommendation, the Accounting Office had been required to reconcile the General Ledger and Subsidiary ledger balances with the record of the Provincial Agriculture Office since they don’t have the individual names of borrowers. While, the Provincial Agriculture Office has index cards of borrowers, their total receivables did not jibe with the total record of the Accounting Office.

Before the actual adoption of the computerized accounting system of the Province, the Accounting Office was instructed by this Office to update all their records including the subsidiary ledgers (SL).

Finally, the Province adopted the computerized accounting system in October, 2006. However, the total of Loans Receivable with individual borrowers still did not jibe with the General Ledger (GL) total. So, they just encoded the reconciling amount in lump sum. Though such procedure was initially allowed for the sake of having the same totals for the SL and GL, the Office should not continue to report the same.

On August 28, 2006, an advisory letter was sent to the Local Chief Executive requesting for the formulation of a duly approved Operational Scheme for the Plant Now Pay Later Program. At year end, the Provincial Agriculture Office submitted the required operational manual. However, Office responsible for the collection and records keeping was still not clearly provided. In its absence, smooth flow of its operation would not be likely attained.

Although, PNPL operations manual did not clearly state the office responsible for its record keeping, the work is clearly the major function of the accounting unit. The Office is tasked to provide reliable financial information to end-users.

Such condition continue to exist because the Accounting Office failed to create subsidiary records of loan recipients coupled with the absence of initiative of both the Provincial Accounting and Agriculture Offices to dig up the previous vouchers/records for the purpose of identifying loan recipients.

Consequently, collection of the total loans receivable of P2,073,082.43 could not be effected.

The Provincial Accountant replied the reconciliation is on-going and they have formulated a flowchart for the smooth flow of the operations which will be presented for confirmation by offices concerned and approval of the Provincial Governor.

RECOMMENDATION:

Require the Provincial Accounting Office to dig up previous records/ vouchers starting from the ledger to the journals and vouchers to identify the loan recipients. Further, Provincial Accounting Office is required to adhere with the provisions of Section 04.e of the National Government Accounting System (NGAS) Volume I.

4. In view of the complexity of some transactions, erroneous entries were prepared for the transfer of Drugs, Medicines, Medical and Laboratory Supplies from the stock room to the hospital pharmacy which is not in accordance with Section 4j of the New Government Accounting System, volume I. In addition, there was no effective internal control system installed in the operation which expose the assets to risk of possible loss .

Under the Generally Accepted Accounting Principles, items or stocks which are intended for sale shall be recorded as Merchandise Inventory in the books. While, one the basic features and policies of the New Government Accounting System, Volume I stipulated under Section 4j is the use of Perpetual Inventory System in recording supplies and materials. Regular purchases shall be coursed thru the inventory account and issuance thereof shall be recorded as they take place.

Review of the journal entries to record the transfer of drugs, medicines, medical and laboratory supplies from the stock room to the Camiguin General Hospital Pharmacy showed the following Entries:

1. Charged to Current Appropriations

Drugs & Medicines Expenses XX

Drugs & Medicines Inventory XX

2. Charged to Trust Account in GF

Other Payables XX

Drugs& Medicines, Inventory XX

The Merchandise Inventory account was recorded in the books based on the Received portion of the Monthly Inventory Report submitted by the Pharmacist at the end of the month and credited to Other Payables.

The Provincial Accountant has reasoned out that the items were included in issued Requisition and Issue Slips and reported in the Statement of Supplies and Materials Issued (SSMI) submitted by PGSO. So, they recorded it as expense in the books.

With the entries made, the items were taken out from the inventory account which should not be the case because it actually existed as Merchandise inventory at Camiguin General Hospital Pharmacy. There are no expenses yet because the items were not yet actually issued. Meanwhile, the recording of Merchandise Inventory should be based on source document which is the Requisition and Issue Slips prepared by the Supply Office and received by the pharmacist and not the Monthly Inventory Report of the Pharmacist. How do we know that all drugs, medicines, medical and laboratory supplies were duly reported by the pharmacist as received? With the present practice, there was no proper monitoring of the pharmacy stock received and issued.

On the Other hand, the revolving fund which is recorded as Other Payables was not reduced by the transfer in inventory caption so there is no need to debit the account. Since, the drugs, medicines, medical and laboratory supplies was only transferred to stocks for sale, the items should have been recorded under

Merchandise Inventory account instead of its corresponding expense account. It should remain as such until sold or issued.

Under such condition, the assets were exposed to the risk of possible loss.

RECOMMENDATION

Require the Provincial Accountant to prepare necessary adjusting entries per suggested journal entries hereto attached. Further, adherence to Section 4j of New Government Accounting System, Volume I is also requested.

Section 4.s of the New Government Accounting System, Volume I states “Liability shall be recognized at the time goods and services are accepted or rendered and supplier/creditor bills are received. It is also provided under Sec. 120 of the same manual that “upon receipt of the Acceptance and Inspection Report (AIR) and other supporting documents, the Chief Accountant shall record the deliveries in the appropriate ledger cards.” Pro-forma accounting entries are also provided in Sec. 126 as follows:

Record delivery of items and charge invoice for procurement on credit

Office Supplies Inventory XX

Accounts Payable XX

Payment of Charge Invoice

Accounts Payable XX

Due to BIR XX

Cash in Bank – LCCA XX

During the post-audit of vouchers, the following was observed:

a.) The journal entries for the purchase of supplies were debited to their respective inventory accounts even if items were delivered in the prior months.

The Province did not purchase supplies for stocks rather most deliveries of supplies were automatically forwarded to requisitioning office.

In this instant case, it is possible that supplies delivered last month would be included in the Summary of Supplies and Materials Issued (SSMI) during that month of delivery thus, included in the expenses for that month. However, those particular supplies delivered last month whose payment was processed and issued check in the following month would be recorded as Inventory during the month of payment. Therefore, the supplies were first recorded as expenses and inventory or asset later.

On the other hand, review of the vouchers entered as Accounts Payable revealed that the liability was established based on the approved Purchase Orders instead of the suppliers/creditors bills or Acceptance and Inspection Report (AIR). The Provincial Accountant said many of the items were not yet delivered as of December 31, 2006 but they have included it as payables as was practiced in the prior years.

This happened because the Provincial Accountant failed to review the basic features and policies of the New Government Accounting System of which some are not consistent with the old system of government accounting.

As a result the Inventory and Accounts Payable reported in the Balance Sheet as of December 31, 2006 is overstated by P2,730,303.08. (Annex 2)

RECOMMENDATION

Remind the Provincial Accounting Office to abide with the provisions of Section 4s, 120 and 126 of the New Government Accounting System in recognizing the liabilities of the Province in the books.

As provided under Section 123 of the New Government Accounting System, “all issuances of supplies or property shall be properly receipted using the forms prescribed under applicable rules and regulations on supply and property management in the local government units.

Balance Sheet in the Trust Fund Account of the Province as of November 30, 2006 reported Agricultural Supplies Inventory in the amount of P1,496,829.61. Subsidiary record revealed the source of funds in the purchase of these inventories as follows:

DA Rehabilitation Program (2002)P961,109.55DA Livelihood Program (2002) 12,000.00Proceeds from DA Seedlings (2004) 13,780.00Camiguin Reforestation &

Mangrove Rehab. Project (2002) 509,940.06

Grand Total P1,496,829.61

Upon verbal follow up, the Provincial Agriculturist promised to submit the Report of Supplies and Materials issued to Accounting Office so that inventory account will be adjusted. But up to present, the said report was never submitted.

Per interview, it was determined that the Office did not practice the preparation of the Requisition and Issue Slip (RIS) for every issuance of agricultural supplies in the prior years. Although, they have a logbook, not all issuances are recorded in it. In addition, they alleged that their Office was not informed that they need to prepare Report of Supplies and Materials Issued because the supplies they have received were still recorded as inventories. At present, they did not know what items were still recorded as inventory in the books. So, they can’t just easily prepare the required report.

In view of the material amount involved, it is very necessary that the Provincial Agriculture Office should submit the Report of Supplies and Materials Issued duly signed by the person receiving the supplies.

Failure of the Provincial Agriculture Office to submit the required report has overstated the assets of the Province by P1,496,829.61.

During the exit conference, the Provincial Agriculturist promised to submit the report within the month of February, 2007.

RECOMMENDATION

Require the personnel in charge of the distribution of agricultural supplies to coordinate with the Accounting Office in retrieving the disbursement vouchers pertaining to the purchase to enable them to prepare the Report of Supplies and Materials Issued.

Furthermore, require the Provincial Agriculture Office to prepare the Requisition and Issue Slip for every issuance of agricultural supplies pursuant to the provision of Section 123 of the New Government Accounting System.