COA flags coast guard's unrecorded P454-M watercraft

Adrian Ayalin, ABS-CBN News

Posted at Jul 18 2019 08:10 PM | Updated as of Jul 18 2019 10:59 PM

Members of the Philippine Coast Guard watch during the arrival of the 9th Multi-Role Response Vessel (MRRV-4410) BRP Bagacay at the Philippine Coast Guard’s National Headquarters in Manila on Thursday. The vessel was provided to the Philippines through Japan’s Official Development Assistance (ODA). Philippine Coast Guard Handout

MANILA - The Commission on Audit has flagged the Philippine Coast Guard for watercraft and other vehicles, including a P454.067 million Multi-Role Response Vessel from Japan, which were not recorded in the books of the maritime agency.

State auditors said that the PCG failed to record MRRV 4410, named Cape Engano, in its books which understated the watercraft account last year. 

The vessel is one of 10 MRRVs acquired through a loan agreement with the Japan International Cooperation Agency in 2013.

The audit report also noted that the P13.622 million depreciation value of Cape Engano should have been recognized.

The following vehicles were also unrecorded in the PCG account books, said COA: 

- 20 ambulances, sedans and sports utility vehicles worth P15.9 million, which were donated by the transportation department, military and Police Mutual Benefit Association, Inc. 

- 10 JAC Prince Turbo Cargo vehicles worth P10.8 million 

- An P18.7-million aluminum workboat 

A former chief accountant in 2013 said that adjustments in the books cannot be made due to lack of documents such as bank statements and other reports pertaining to the workboat, COA noted. 

Aside from the unrecorded watercraft and vehicles, there were also other “errors” noted by the audit team which all amount to P505.625 million.

The COA recommended that the PCG direct its accounting services office to prepare the “necessary adjusting entries to correct the errors.”

The office of PCG Commandant Adm. Elson Hermogino received a copy of the report last June 28. It can be downloaded from the COA website.