COA: Occidental Mindoro’s purchase of 34 vehicles ‘extravagant’, ‘unnecessary’


The Commission on Audit has described as “unnecessary” and “extravagant” the purchase of 34 new service vehicles last year by the Occidental Mindoro provincial government.

State auditors said the province borrowed P40.89 million from the state-owned Land Bank of the Philippines to pay for the vehicles using its share of future Internal Revenue Allotments (IRA) as collateral.

The vehicles were distributed to members of the Sangguniang Panlalawigan and heads of department in the provincial capitol.

COA noted that the provincial government still owes Land Bank a loan in 2011 used to buy 19 service vehicles.

“Available cash of the province is tied up for payment of loans since payment of salaries and other employee benefits and other obligations to internal and external creditors could not be made until the IRA is released,” the audit agency said.

Included in the the new acquisitions were 15 Isuzu D-Max pickup trucks, five Isuzu Sportivo AUVs, 11 Mitsubishi L-300 vans, a Toyota Fortuner 4×4, an Isuzu Alterra, and a Nissan Super Safari Wagon.

COA said Occidental Mindoro will now be paying interests “for a period of five years which could otherwise be used for more important developmental projects.”


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