Governance News

Ghost projects

This is a re-posted opinion piece.

Despite the modest pay, public office is often seen in this country as a sure path to fortune if not fame. The results of an investigation conducted by the Commission on Audit in the Autonomous Region in Muslim Mindanao give an indication of why this is so. Going over documents and interviewing people, COA auditors have uncovered “ghost” deals in the ARMM amounting to a whopping P2.6 billion. This was in 2010 alone.

Suppliers interviewed by auditors denied delivering goods worth millions to the ARMM. Purchases were covered by spurious documents. Projects for which funds were released were not implemented or fell way below the level of accomplishment reported by ARMM officials, according to COA auditors.

How prevalent are these practices? The COA should find out. It’s likely that similar illegal activities are being perpetrated in many other local government units. It was probably no coincidence that ARMM expenditures were subjected to a thorough COA scrutiny as President Aquino prepared to appoint an officer-in-charge who would be tasked to deliver good governance in the autonomous region for the next two years.

Not everyone will be caught. But these rackets can be discouraged if at least some of those involved are identified and penalized, including any auditor who might have coddled perpetrators. All government offices are subjected to regular audit, but how many anomalies have been reported and those responsible penalized? These activities have been going on for decades because of the failure of the state to punish perpetrators.

Recent congressional inquiries have unearthed major corruption scandals, with government auditors themselves apparently conniving with crooks. “Ghost” procurements and non-existent projects have been uncovered in many government agencies including the military, the Philippine National Police, and revenue-generating agencies such as the Philippine Amusement and Gaming Corp. It is not farfetched to believe that local government officials apart from those in the ARMM have pocketed public funds disbursed for non-existent projects, goods or services. The COA should subject more local government units to a thorough probe.
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Source: The Philippine Star, Editorial, Aug. 31, 2011
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