COA upholds liability of ex-Cebu lawmaker for misuse of funds

MANILA, Philippines – The Commission on Audit affirmed the liability of former Cebu Representative Clavel Martinez, following the alleged fraudulent withdrawal of P25 million from the funds of the Girl Scouts of the Philippines in Cebu in 2002.

In a decision released on Friday, October 23, COA chairman Michael G. Aguinaldo and commissioners Heidi Mendoza and Jose Fabia rejected Martinez’s motion for reconsideration.

The P25 million, COA said, was supposedly allocated for the GSP-Cebu’s anti-drug campaign out of Martinez’s Priority Development Assistance Fund (PDAF). 

A report submitted by the special investigating panel of auditors showed the entire amount was broken down into 3 checks and were withdrawn on separate dates by the former lawmaker and her daughter, Maria Cielo Martinez. 

The COA’s Fraud Audit and Investigation Office (FAIO) earlier issued a notice of disallowance against Martinez, as none of the withdrawals of GSP-Cebu funds were authorized by its Board of Trustees.

In her motion for reconsideration dated January 11, 2011, Martinez claimed GSP-Cebu Council is a private corporation hence its financial transactions are outside the jurisdiction of the COA.

COA, however said, the amount came from Martinez’s PDAF, insisting it is public funds.

 “This Commission finds the instant petition bereft of merit. In the case of the Boy Scouts of the Philippines (BSP) vs. The Commission on Audit, the Supreme Court held that the BSP is a public corporation because it is a corporation created for public interest or purpose. Thus its funds are subject to COA’s audit jurisdiction,” the COA said

“Sound internal control dictates that the person who has signing authority to withdraw corporate funds should not have custody of the said funds especially if the amount involves millions of pesos. It makes the transaction dubious. Hence, a board resolution authorizing the withdrawal is necessary to validate propriety and legality,” the COA added.

Martinez, her daughter Maria Cielo, and son former Bogo City Mayor Celestino Martinez III are facing graft and malversation charges before the Ombudsman. (READ: Ex-Cebu rep, children allowed to post bail in PDAF case)

Charged along with the Martinezes are then Bogo treasurer Rhett E. Minguez, municipal accountant Cresencio P. Verdida, GSP Cebu Council bookkeeper Rhodariza V. Kilantang, and GSP-Cebu cashier-designate Julieta G. Quiño. – Rappler.com