Commission on Audit (COA) – Author Carlo Carrasco

S&P Credit Rating Upgrade For Philippines Derailed By Flood Control Scandals

October 23, 2025October 15, 2025carlocarrasco

Here in the Philippines, the flood control corruption scandals are not only keeping many Filipinos very angry but they are also affecting the economy negatively as the nation was prevented from achieving a credit rating upgrade from S&P Global Ratings, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the BusinessWorld. Some parts in boldface…

THE FINANCE CHIEF on Tuesday said the multibillion-peso flood control scandal prevented the Philippines from getting a credit rating upgrade from S&P Global Ratings.

“If [only] we did not have the flood control issue,” Finance Secretary Ralph G. Recto told reporters on the sidelines of a Senate budget hearing. “We met with S&P, and they were ready to give us a credit rating upgrade this year.”

The controversy, which involves “ghost” projects and fund misuse in government flood control programs, has triggered investigations by Congress, the Commission on Audit, the Ombudsman, and the Independent Commission for Infrastructure.

The Marcos administration is facing increasing scrutiny over flood control projects, where billions of pesos in public funds were diverted through padded contracts and shell companies.

The scandal highlighted spending inefficiencies and governance lapses that credit agencies closely monitor when evaluating institutional credibility and fiscal management.

Asked whether the Philippines can achieve an “A” credit rating in the next two years, Mr. Recto said: “I hope so.”

He said the government wants to maintain its current credit rating, despite the multibillion-peso corruption scandal.

“There is a big chance they will maintain it, but there was a bigger chance for a credit rating upgrade,” he added.

In November 2024, S&P affirmed its “BBB+” long-term credit rating for the Philippines, which is a notch below the “A” level grade targeted by the government.

S&P had also raised its rating outlook to “positive” from “stable.” A positive outlook means the Philippines’ credit rating could be raised over the next two years if improvements are sustained.

Mr. Recto said the government needs to improve its governance and resolve the flood control mess.

Let me end this post by asking you readers: What is your reaction to this development? What do you think the national government should do to resolve the flood control mess? Are you convinced that the ongoing flood control corruption scandals are already turning away potential foreign investors?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

DILG urges LGUs to adopt cashless payments for government transactions

May 21, 2025May 17, 2025carlocarrasco

By emphasizing transparence, efficiency and public conveniences as key factors, the Department of the Interior and Local Government (DILG) urged local government units (LGUs) nationwide to adopt cashless payments for government transactions, according to a Manila Bulletin news report. The DILG clarified, however, that the traditional modes of payments must still be accepted by LGUs.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

The Department of the Interior and Local Government (DILG) called on the local government units (LGUs) on Saturday, May 17, to promote electronic payment and collection systems as an alternative to the traditional mode of payment in government transactions.

The DILG memorandum circular encourages the LGUs to implement EPCS for collecting local taxes, fees, and other charges, in accordance with Executive Order No. 170, series of 2022 on the use of digital payments for government transactions.

Further, the DILG asserted that digital payments improve transparency, efficiency and public convenience with the LGUs being encouraged to offer secure, accessible digital options, ensure payment channels are user-friendly, and partner with authorized providers, including government servicing banks.

“All efforts must align with the National Retail Payment System Framework and the Data Privacy Act,’’ the DILG emphasized.

“LGUs are also expected to define clear procedures for issuing electronic invoices and billing notices, consistent with guidelines from the Commission on Audit and the Bangko Sentral ng Pilipinas,’’ it added.

While promoting digitalization, the DILG clarified that the LGUs must still accept cash and other traditional modes of payment to ensure accessibility for all.

To support its full implementation, the DILG prodded the LGUs to pass enabling ordinances and issue local policies.

Let me end this post by asking you readers: What is your reaction to this recent development? When it comes to doing transactions with your local government, do you prefer to pay in cash or use digital methods such as e-wallets? Is your local government already accepting payments in electronic form?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Commission on Audit (COA) tells local governments to limit expenses of discretionary funds to amounts under law

April 22, 2024April 10, 2024carlocarrasco

Recently the Commission on Audit (COA) reminded local government units (LGUs) to limit the expenses of discretionary funds as it cited the case of one particular town that exceeded its “prescribed statutory limitation” for extraordinary and miscellaneous expenses (EME) by millions of Pesos in 2023, according to a Manila Bulletin news report.

To put things in perspective, posted below is an excerpt from the Manila Bulletin news report. Some parts in boldface…

The Commission on Audit (COA) has reminded local government units (LGUs) against exceeding the “statutory limitation” on disbursements for extraordinary and miscellaneous expenses (EME) or discretionary funds taken out of their collected real property taxes (RPTs).

It cited the case of Eastern Samar’s Guiuan town which exceeded its “prescribed statutory limitation” for EME by P6.53 million in 2023.

In its annual audit report (AAR), COA cited its Circular No. 85-55A and Section 325(h) of Republic Act No. 7160, the Local Government Code, which both provide the general limitation on the use of EME funding.

Section 325(h) of RA 7160 provides: “The annual appropriations for discretionary purposes of the local chief executive shall not exceed two percent (2%) of the actual receipts derived from basic real property tax in the next preceding calendar year. Discretionary funds shall be disbursed only for public purposes to be supported by appropriate vouchers and subject to such guidelines as may be prescribed by law. No amount shall be appropriated for the same purpose except as authorized under this section.“

COA said that under the law, Guiuan town should only have EME of P26,465.14, which is equivalent to two percent of the P1.323 million RPT collected in 2021. But, it said, the town used P6.56 million for its discretionary funds or an excess of P6.53 million.

It pointed out that discretionary funds are only supposed to be used by the Office of the Municipal Mayor, but Guiuan even allocated funds for different offices such as the Vice Mayor’s office, Municipal Investment and Tourism Office (MITO), and Municipal Treasurer’s Office, among other offices.

It said the Mayor’s Office used P2,611,254.77 EME in 2023, while the vice mayor used P500,000. MITO, it also said, spent P1,332,395, while the Municipal Treasurer’s Office used up P450,000 EME.

It noted that when its audit team confronted the municipal accountant about its excessive use of discretionary funds, the accountant explained that it committed an “honest error” in assuming that the EME account was a “misnomer for Other Maintenance and Other Operating Expenses account.”

Let me end this piece by asking you readers: What is your reaction to this recent development? Is your local government practicing a disciplined approach on spending and the alignment of funds?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Only cash and manager’s checks will be accepted by Muntinlupa Treasurer’s Office

April 10, 2024April 1, 2024carlocarrasco

Recently in the progressive City of Muntinlupa, the City Government announced that its Treasurer’s Office will no longer accept personal and company checks as forms of payment, according to a Manila Bulletin news report. This effectively means that only cash and manager’s checks will be accepted by the said office on-site (over the counter).

To put things in perspective, posted below is an excerpt from the Manila Bulletin news report. Some parts in boldface…

The Muntinlupa City government announced that its Treasurer’s Office will no longer accept personal and company checks as payment.

In a Facebook post on April 1, the city government said this is based on the “Commission on Audit (COA) Circular No. 2013-004, Items 26-28, Chapter II” or the Revised Cash Examination Manual.

It said only cash and manager’s checks with the City Treasurer of Muntinlupa as payee will be accepted for on-site payment.

Under items 26 to 28 of the COA circular, “Checks presented for payment must be drawn by the payor himself and made payable to the agency or head of agency. In the latter case, only the official title or designation of the agency head concerned shall be stated as the payee.”

It prohibits the following checks as payment: checks drawn payable to the name of the agency head or any of its officers, endorsed private checks, post-dated checks, and stale checks.

“When a check drawn in favor of the government is not accepted by the drawee for any reason, the drawer shall continue to be liable for the sum due and all penalties resulting from delayed payments. Where the reason for non-acceptance by the drawee bank is insufficiency of funds, the drawer shall be criminally liable therefore,” the circular stated.

It added, “Whenever a payor has a record of a previously dishonored private check drawn by him in payment of taxes and dues, even if such check has already been settled, any private check presented by him shall no longer be accepted. In such case, the payor shall be required to pay only in cash or by certified check. Each agency head, or treasurer, in the case of local government units, shall make a list of payors whose checks have been dishonored and shall circularize the list to all COs under his jurisdiction.”

Let me end this post by asking you readers: What is your reaction to this recent development? If you are a resident of Muntinlupa City, do you have any issues with having to pay only cash or manager’s checks to the Treasurer’s Office?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

Tumang: BFSK is already compliant with JMC Number 1

September 19, 2019carlocarrasco

Even as the Department of Interior and Local Government (DILG) issued an order to all Sangguniang Kabataan (SK) units nationwide to use their respective budgets by following the Joint Memorandum Circular (JMC) of January 2019 designated as JMC Number 1 (issued by the Department of Budget and Management, the National Youth Commission and the DILG itself), Barangay BF Homes Sangguniang Kabataan (BFSK) chairperson Mariel Angela Tumang confirmed to me today that their SK achieved compliance before the DILG’s September 17 order was published.

IMG_20190417_105303~2.jpg — *Barangay BF Homes chairperson Mariel Tumang.*

“We have complied with all the requirements needed. These include the opening of bank account, doing the fidelity bonding, making the three-year plan, the annual investment plan, and the annual budget for 2019,” BFSK chairperson Tumang said. “We now have our independence using the SK funds. Already we have started disbursing the SK budget since this past August.”

The BFSK head added that, right now, they are waiting for the mandatory training that the DILG and the NYC are supposed to organize. The training is designed to provide guidance to all SK units about utilizing the SK funds properly and in accordance to existing laws.

This latest development is not the first time that the BFSK’s compliance has been acknowledged. Recently the SK Federation of Parañaque City acknowledged the BFSK for the said achievement.

As Tumang told me previously, more projects and activities will be organized by the BFSK in the near future now that they have achieve independence from the barangay and now have access to the SK funds.

Speaking of activities in Barangay BF Homes in Parañaque City, there will be a seminar on pregnancy and HIV/AIDS on September 28 and the 3rd quarter Waste-for-Rice activity on September 29. Tumang announced these on September 14.

The technical stuff

In the order of the DILG, it was stated that JMC Number 1 (Series of 2019) provides guidelines on the appropriation, release, planning and budgeting process for the SK funds.

Jonathan E. Malaya, who serves as the Undersecretary and Spokesperson of the DILG, stated that pending the issuance of the Commission on Audit (COA)’s guidelines on SK financial transactions, the SK may start using their budgets “provided they comply with the requirements of the DBM-DILG-NYC Joint Memorandum Circular.”

“The development agenda for the youth sector cannot be further delayed. SK officials in every locality should now get the ball rolling so that they can already carry out projects that are meant to promote the interests and welfare of the youth,” Malaya said.

The spokesperson added that there is no need to wait for the COA guidelines because the commission has given the SK the green light to use their funds in accordance to JMC Number 1 which in itself details the procedures on how they can disburse their respective budgets.

In order for SK funds to be disbursed, a current bank account under the name of the SK must be opened (by the SK chairperson specifically) in a government-owned bank, apply for fidelity bonding (with the SK chairperson and the SK treasurer as the accountable officials), and a 3-year rolling plan called the Comprehensive Barangay Youth Development Plan (CBYDP) must be formulated.

Beyond these, SK officials are required to undergo training programs conducted by the DILG, NYC, and the authorized training providers in accordance with DILG Memorandum Circular No. 2018-48, as well as continuing training programs on the Government Procurement Reform Act, Manual on Financial Transactions of the SK, the proper utilization of SK fund, the accounting and auditing rules and regulations and any other relevant trainings which will help them carry out their functions effectively and efficiently.

When it comes to the funding, 10% of the general fund of barangays shall be set aside for the Sangguniang Kabataan which shall be appropriated in lump sum and distributed solely for youth development and empowerment purposes in accordance to the SK Reform Act.

The law further states that the SK shall have financial independence in its operations, disbursements and encashment of their fund, income and expenditures.

Thank you for reading. If you find this article engaging, please click the like button below and also please consider sharing this article to others. Also my fantasy book The World of Havenor is still available in paperback and e-book format. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me as well. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me at HavenorFantasy@twitter.com

Barangay BF Homes SK Acknowledged by Parañaque SK Federation as Legally Independent on SK Funding

September 5, 2019September 5, 2019carlocarrasco

On the afternoon of September 4, the Parañaque SK Federation acknowledged through Facebook the Barangay BF Homes Sangguniang Kabataan (BFSK) for its legal independence on SK funding.

This development highlights one of the objectives under the Reformed SK System which is to make the SK unit financially independent from the Barangay unit. BFSK chairperson Mariel Tumang mentioned this during the July 14 general meeting at Barangay BF Homes hall. Tumang, by the way, is incumbent Vice President of the Parañaque SK Federation.

In relation to this development, Tumang clarified to me yesterday that the Barangay BF Homes SK accomplished the fidelity bond (an insurance of bondable public officer under the Fidelity Fund to assure faithful performance of all duties imposed by law and faithfully accounting all funds and public properties) as well as the opening of a bank account since July. Therefore the Parañaque SK Federation’s acknowledgement of the BFSK came rather late.

Apart from achieving independence on funding, the BFSK will have more freedom (when compared to depending on the Barangay’s own fund for your development) on creating new programs, projects and activities focused on the youth. Tumang confirmed to me that the total funds for their SK is estimated at P6.4 million and soon they will organize the upcoming Youth Camp before the year ends.

*Group shot I took of the BFSK (chairperson Mariel Tumang standing 4th from left) kagawads and officials with Barangay BF Homes captain Paolo Marquez during the BFSK general meeting on July 14.*

These recent developments don’t tell the complete story though. Tumang said there are still some things that need to be done.

The BFSK chairperson told me that she, the SK kagawads and other officers will have to undergo training from the Commission on Audit (COA) and the Department of the Interior and Local Government (DILG) for guidelines.

Due to the bureaucracy and the fact that there are still some Sangguniang Kabataan units from other barangays of Parañaque who have not yet accomplished fidelity bonding, such training won’t start until everyone is ready. To put things in perspective, Parañaque has a total of sixteen barangays and each of them has its own SK unit.

For future updates on the youth of Barangay BF Homes, come back here soon.

If you are interested on BFSK-related articles, read my feature interview of SK Kagawad Jerry Dalmero here, the BFSK’s campaign versus youth suicide here and my in-depth coverage of the BFSK’s Linggo ng Kabataan event here.

To others reading this, if you are dissatisfied with print media and you want your community/organization/business to be featured on this website, please contact me locally via mobile number 0905-3350831 or via email at Carlo.Carrasco@gmail.com

We can negotiate, work together and be achievers together.

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