Commission on Audit

COA finds 2 unrecorded NEA-linked bank accounts with P290 million

COA finds 2 unrecorded NEA-linked bank accounts with P290 million
State auditors remind the National Electrification Administration that it is required to make a fair presentation of its financial position and cash flow

The National Electrification Administration (NEA) maintained two bank accounts that were not listed in any of its books, the Commission on Audit (COA) found.

In a report, state auditors said the two accounts were in state-owned lenders Development Bank of the Philippines (DBP) and United Coconut Planters Bank (UCPB). The commission confirmed the existence of the accounts through bank confirmation letters.

“Both savings accounts were not reflected in the NEA’s books…and no subsidiary ledgers were found for these two accounts,” COA said.

Documents obtained by state auditors show that NEA’s UCPB account held P90.66 million while the DBP account had P200 million as of December 31, 2020.

COA also found that deposits totaling P200.65 million in another account listed in NEA’s documents were not confirmed by DBP.

State auditors reminded NEA that it is required to make a fair presentation of its financial position and cash flow. They also told the agency to present monthly bank reconciliation statements of its 27 accounts.

Responding to the findings, NEA said it has instructed its accounting division to immediately include in its books the two unrecorded bank accounts, and to start verifying the P200.65 million worth of deposits in another recorded account.

The agency, however, explained that the unrecorded funds include balances which came from various online deposits from cooperatives and interest income.

The audit report comes amid the recent firing of NEA Administrator Edgardo Masongsong by President Rodrigo Duterte.

The Presidential Anti-Corruption Commission accused Masongsong of allowing electric cooperatives to continue financial support to the Philippine Rural Electric Cooperatives Association party-list group. – Rappler.com

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