KAWIT, Cavite — The Municipality of Kawit, Cavite under Mayor Angelo Aguinaldo saw its donations and financial assistance spending skyrocket by 93% to P38.8 million, according to a Commission on Audit (COA) report that raised red flags about glaring misuse of funds.

The steep increase from P20.2 million in 2018 accounted for 22% of Kawit’s total Maintenance and Other Operating Expenses (MOOE) for 2019, the report stated.

Auditors noted this surge came despite the municipality’s ongoing cash deficit, suggesting a lack of fiscal prudence.

“Given this circumstance, the Municipality should have exercised diligence, prudence and control in the disposition of government funds,” the COA report said.

The audit revealed a wide disparity in assistance provided, ranging from P1,000 to P300,000 for medical aid, P3,000 to P100,000 for burial expenses, and P1,800 to P65,000 for educational support. Financial assistance varied from P1,000 to P195,000.

“Clearly, there was a huge disparity in the amounts being given to the donees. There was no uniform and equitable schedule in the grant of assistance mainly due to lack of specific policies and guidelines,” auditors wrote.

The report cited Section 36 of Republic Act 7160, which allows local government units to provide assistance to constituents for socially-oriented projects. However, it stressed the need for clear policies to ensure consistency and prevent excessive discretion.

“Notwithstanding, there is a need for the local officials to formulate policies and guidelines on the grant of donations/financial assistance for consistency, uniformity in application and to deter exercise of too much discretion,” COA said.

Auditors warned that the lack of transparent guidelines could lead to public perception of unfair fund distribution and erode trust in local government.

The report slammed Kawit Mayor Angelo Aguinaldo and ordered to exercise prudence in disbursements and develop clear policies for donations and financial assistance.

These guidelines should consider applicants’ needs, circumstances, and the purpose of their requests, COA said.

For several years, Kawit has faced cash deficits, with year-end balances insufficient to cover current obligations and trust liabilities.

COA said the municipality should have prioritized addressing this deficit rather than dramatically increasing donations.

The audit also found that the 2019 donation expenses were 93% higher than the previous year, jumping from P20,158,615.97 in 2018 to P38,842,058.30 in 2019.

The huge increase in donations, despite ongoing cash deficits, raises questions about the municipality’s fiscal management and priorities under Mayor Aguinaldo’s administration.