COA urges charges vs NFA officials over P2.9B stock shortage

MANILA, Philippines – The Commission on Audit (COA) has recommended the filing of criminal and administrative charges against some National Food Authority (NFA) regional and provincial officials after it discovered nearly P3 billion in rice stock shortages as of 2013.

In an audit report released on Monday, January 26, COA said it spotted discrepancies in stock delivery reports compared to bag-to-bag counts. The discrepancies have been mounting since 2003 or even earlier, such that as of 2013, stock shortages hit P2.995 billion ($68 million), the report said.

COA did not specify if the shortages were due to pilfering or under-deliveries. It noted that the bad record-keeping of officers in charge of stock accounting and warehouse supervisors has made it difficult for both the NFA central office and government auditors to trace the missing grain stocks. 

Even if “tolerable allowances” (TOLA) for the variance in figures is considered, the shortage increase is still alarming, said COA.

The 2013 figure increased by P367.77 million ($8.3 million) from P2.618 billion ($59 million) in 2012 despite efforts to address the problem.

“As reported in the 2012 Annual Audit Report (on NFA), the shortages determined from the variances during the physical count of stocks had accumulated…for more than 10 years because of incomplete or absence of stock examination and TOLA computation which are requisites in the determination of final shortages,” it said. 

The anomalies persisted for more than 10 years showing that “efforts exerted in the conduct and completion of the stock examination and TOLA computation were till wanting,” added COA.

Recommendations 

NFA provincial officials defended themselves by saying they are unable to conduct a thorough examination of the stocks because they lack personnel. 

Some officers accountable for stocks have already passed away, retired, resigned, or  on leave, making it hard to verify the accuracy of the records, they said.

COA recommended that the NFA Legal Affairs Department file cases against the erring officers. The NFA has already filed criminal cases for malversation against 45 stock accountable officers whose shortages total P306.385 million ($7 million).

NFA’s Internal Audit Service Department has also imposed deadlines for NFA field offices to complete their stock examination. 

The NFA said it has also established an inter-connected internal control system that will trace stocks from warehouse to operation and accounting to keep a closer eye on stock movements. – Rappler.com