DEC.

8, 2011 DATE

NR # 2611
REF. NO.

Failure to liquidate cash advances to be considered malversation of public funds

A lawmaker today expressed dismay over the Commission on Audits (COA) reports of huge amounts of unliquidated cash advances in government offices. This is a disturbing situation. We have to resolve this issue and instill the value of accountability on the part responsible public officials, Rep. Roman Romulo (Lone District, Pasig City) underscored. Romulo noted that in 2005 alone, cash advances for the national government reached P4.8-billion per COAs published Annual Financial Report. What about the succeeding years to the present? The financial statement of the government when not presented accurately affects the data gathered by the readers of the financial statements particularly the policy and decision makers in the government, Romulo said. In view of this continuing complacency to liquidate cash advances within the period provided by law, Romulo filed HB 2009 to consider such failure as prima facie proof of malversation or misappropriation of public funds. HB 2009, now pending with the House Committee on Revision of Laws, is entitled An Act to Amend Article 217 of the Revised Penal Code making the failure to liquidate cash advances within the period provided therein prima facie proof of malversation. Romulo proposes to amend Article 217 of the Revised Penal Code by adding another paragraph to read as follows: In addition, the failure of a public officer or employee, who was previously granted a cash advance, to liquidate the same after the purpose for which it was given has been served within the following periods shall be prima facie proof of malversation or misappropriation of the fund received, to wit: 1. Salaries, wages, etc. within five days after each 15th day/end of the month pay period. 2. For petty operating expenses and field operating expenses within 20 days after the end of the year. 3. For special operations, and operating expenses or purchases of supplies, materials and the like in an amount exceeding P100,000 -20 days after the completion of the operation or the delivery and acceptance of the supplies, materials and the like.

DEC. 8, 2011 DATE

NR # 2611
REF. NO.

4. For local travel within 15 days upon return to his official station. 5. For foreign travel within 60 days upon his return to the Philippines. 6. Others within six months after the purpose for which the cash advance has been granted, has been served. Both the Revised Penal Code and Presidential Decree 1445 have strict provisions on the matter of cash advances, its limitations, responsibilities of public officials and employees and corresponding penal clauses. In all cases, Romulo said, persons guilty of malversation shall also suffer the penalty of perpetual special disqualification and a fine equal to the amount of the funds malversed or equal to the total value of the property embezzled. Depending on the amount involve, the penalty of imprisonment ranges from prision correcional to reclusion perpetua. Our proposal seeks to correct the practice of government officials and employees of disregarding the requirement of laws and regulations on the prompt liquidation of cash advances granted them in the pursuit of official business, Romulo concluded. (30) dpt