SUMMARY
This is AI generated summarization, which may have errors. For context, always refer to the full article.
The Commission on Audit warned the Nayong Pilipino Foundation (NPF) could run out of funds even before it has started its mandated purpose of constructing a cultural park in Parañaque City.
Government auditors said the NPF spent P150 million in 2018, P180 million in 2019, P50 million in 2020, and P95.6 million in 2021. This amounts to some P475.6 million over the period stated.
COA said, at that rate, the NPF trust/investment fund would be wiped out in over six years.
COA’s 2021 audit report released Monday, June 6, noted that the NPF trust fund of P1.232 billion came from its lease agreement with Resorts World Bayshore City on August 20, 2014.
That agreement covered a 5.43-hectare portion of Nayong Plipino’s 15-hectare property in the Manila Bay reclamation area. So far, Resorts World has paid an advance rental of P1 billion and reimbursed P232 million for the construction of roads, paving, drainage system on the property.
The COA report noted as of December 2021, the fund has dwindled to P754.682 million, down 39%.
What bothered the auditors was that the bulk of expenses was mostly on “general, administrative, and support expenses” and only a minimal portion was spent on programs, activities, and projects related to the mandated purpose of the fund.
The NPF’s spending, said COA, “is not attributed to the purpose for which the Fund was earmarked, but rather in absence of other sources of revenue/funds to finance the operations of NPF.”
The state auditors warned: “If NPF would not introduce PAPs (programs, activities and projects) that would generate additional sources of funds/revenue and/or introduce improvements on fiscal management, the total remaining trust fund of P754.682 million would be depleted after 6.34 years.”
The advance rental of Resorts World was supposed to be bankroll the development of the new Nayong Pilipino Cultural Park. Presidential Decree No. 37 mandates NPF to establish parks and recreation centers for the promotion of tourism in the country.
COA said the NPF must find other sources of funds if, as estimated, its funds run out because the next rent on its lease agreement will still fall on 2035.
COA added “that once the construction of the NPF Park in Parañaque City commences, the funds would further be depleted, thus, compounding the funding problems of NPF.” – Rappler.com
Add a comment
How does this make you feel?
There are no comments yet. Add your comment to start the conversation.