17 Kawit officials had under-bonded P61-M cash advances under Aguinaldo — COA

KAWIT, Cavite — COA auditors found that 17 accountable officers of the municipal government of Kawit, Cavite held fidelity bonds that fell far short of covering their actual cash advance accountabilities in 2020, exposing the government to financial risk in the event of defalcations or shortages, a Commission on Audit report revealed.

The finding, recorded as Observation No. 9 in the COA’s audit of Kawit’s local government unit, covered the period when former Mayor Angelo Aguinaldo — now the municipality’s vice mayor — was at the helm of the local executive branch.

Auditors found that the 17 Accountable Officers (AOs) received cash advances that exceeded the maximum accountability covered by their fidelity bonds — in some cases by staggering margins.

Under Treasury Circular No. 002-2009 and Section 101 of Presidential Decree No. 1445, every accountable officer is required to be properly bonded in amounts commensurate with their actual accountabilities.

Among the most glaring cases was that of Agustina Lavina, whose maximum cash accountability bond was pegged at P5,000,000 — yet she received cash advances that exceeded that ceiling three times, with the excess ranging from P3.33 million to as high as P61.18 million.

Rey Victor Santos likewise drew cash advances exceeding his bond twice, with the excess reaching nearly P1.94 million.

Other AOs cited in the report include Gladies Ann Mayette L. Alastoy, who breached her P25,000 maximum accountability six times with excess advances reaching P425,000; Mary Joyce Cavas, with excess advances up to P872,500; Lilibeth G. Pasao, who exceeded her bond limit three times; and Riza R. Tiong, also cited for three breaches.

All but Lavina carried a maximum cash accountability bond of only P25,000 — a figure auditors found wholly inadequate against the actual cash advances granted to each officer.

COA warned that the conditions exposed the Kawit LGU to “risk of non-indemnification in cases of defalcations, shortages and unrelieved accountabilities,” meaning the government may not be fully reimbursed for any losses arising from mishandling of funds.

Auditors recommended that the Municipal Mayor direct the Municipal Treasurer to either increase the fidelity bond amounts to match actual cash advances in accordance with Treasury Circular No. 02-2009, or limit cash advances to levels covered by existing bond amounts.

In its management comment, the LGU said instructions were given to the Municipal Treasurer for an immediate review of accountabilities and to increase fidelity bond amounts in line with the circular’s provisions.

The finding raises questions about the internal controls and financial oversight exercised during Aguinaldo’s mayoral term, as the disbursement of cash advances well beyond the protection of fidelity bonds represents a systemic lapse in safeguarding public funds.

Aguinaldo, who served as mayor at the time of the audit period, now sits as vice mayor of Kawit.