AUDIT OBSERVATION MEMORANDUM NO. 4

AUDIT OBSERVATION MEMORANDUM NO. 4. The Municipal Engineer of Bulan, Sorsogon failed to strictly observe and conform to the policy, standard and guidelines in the establishment, construction, improvement, and operation of Bulan Slaughterhouse/Abattoir pursuant to Executive Order No. 137 series of 1993.

DISCUSSION:

Section 1 of Executive Order No. 137 series of 1993, states that – Construction, Improvement, Expansion and Operation of Slaughterhouse shall conform to applicable local and national policies, standards and guidelines. To prevent wastage in terms of time and valuable logistics and to maintain a uniform, high standard of sanitation in the operation and maintenance of slaughterhouses, the National Meat Inspection Service (NMIS) and the LGU’s concerned shall perform the following:

(a) The city or municipality:

1. shall, by ordinance, establish and operate a public slaughterhouse. In the construction, improvement, and expansion of such establishment, the city or municipality shall conform to applicable local and national policies, standards, and guidelines. For this purpose, the concerned local government unit may seek the assistance of the NMIS and other government agencies.

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(b) The NMIS shall:

1. formulate national policies, guidelines, rules and regulations governing the establishment and operations of slaughterhouses; and

2. exercise technical supervision over the establishment and operations of slaughterhouses with authority to recommend sanctions and closure to local chief executives for those that do not comply or meet the requirements and standards set thereof.

For monitoring and evaluation, the NMIS, in coordination with the LGU concerned, shall monitor, conduct field inspection, and require those involved in slaughterhouse operation to submit periodic and special reports to the NMIS.

Our audit disclosed that the municipal engineer failed to seek assistance to strictly observe, follow and conform to the policies, standards and guidelines in the establishment, improvement, expansion and operation of slaughterhouse/municipal abattoir pursuant to Section 1 of Executive Order No. 137 series of 1993. The Municipal engineer was provided by the Regional Technical Director of NMIS with the floor plan of standard municipal abattoir. The Municipal Engineer had prepared the slaughterhouse plan but did not submit any copy of the proposed plan to the NMIS. Moreover, the Municipal Engineer was informed that a 5000 sq. m. Area for the slaughterhouse would be suitable. However, the said slaughterhouse was constructed in a small lot with an area of 500 sq. m. under TCT No. 64061, identified as Lot No. 1043-1-3-B, PSD-05-038643 located at Zone 7, Bulan, Sorsogon. Evaluation team from the NMIS conducted the site evaluation and revealed the following deficiencies, to wit:

1. The project site was so irregular and the area is so small. One tenth (1/10) of suitable site (500 sq. m. over 5000 sq. m.).

2. Waste water facility is so small.

3. Animal lairage cannot accommodate the number of animals for daily slaughter.

4. Dispatch area is too narrow.

5. Revised floor plan that the set up was disorganized.

6. For not consulting the NMIS, the vertical beams were too low that cannot accommodate the standard height for equipment installation.

Likewise, on August 19, 2008 the same evaluation team conducted inspection on the acquired stainless scalding vat without unloading cradle, a number of stainless table, hog trolley, gambrels and installation of overhead rail that will result the carcass touching the floor. These equipments are not complete to suffice the normal operation for an abattoir.

A letter was sent to the NMIS dated August 6, 2008 addressed to the Regional Director requesting to furnish us a copy of the inspection report conducted by that office on August 19, 2008 in reply to our request said inspection report was issued on September 12, 2008 and received by this end on September 16, 2008 as our ready reference to anchor our findings and observation.

COA’S RECOMMENDATION:

Require the Municipal Engineer to re-organize the floor arrangement re-setting the beams and columns for the abattoir in proper perspective, if possible to expropriate the lot fronting the dispatch area. Coordinate with the City Engineering Department of Legaspi City if the waste water that they constructed at the public market is applicable in abattoir of LGU Bulan, Sorsogon.

LGU’S COMMENT:

The Local Government of Bulan, through the Office of the Municipal Engineer and other parties concerned, shall implement the recommendations put forward by the Commission. One concern that may not be addressed sooner is the lot area. The 800 sq. m. land was the only available at the time. Acquisition of the adjoining areas would entail large amount and a lengthy period of negotiations.

The LGU, nevertheless, will pursue all angles to comply with recommendations provided for in this particular AOM.

AUDIT OBSERVATION MEMORANDUM NO. 3

AUDIT OBSERVATION MEMORANDUM NO. 3. Construction of Bulan Integrated Bus Terminal at Brgy. Fabrica, Bulan, Sorsogon showed an accomplishment of 99.42% showing a deficiency of 0.58% unaccomplished or an equivalent amount of P191,536.13 for refund / completion by the Contractor.

DISCUSSION:

Ocular inspection conducted by Engr. Roberto F. Rodriguez and Engr. Danilo P. Azupardo, Senior and Supervising Technical Audit Specialist, respectively both of COA Regional Technical Services Office, Region V Legaspi City, on July 16, 2008, the day the undersigned paid a courtesy call with Hon. Mayor Helen C. De Castro, showed that the above named project is only 99.42% completed with the deficiency of 0.58% unaccomplished. This was due to the fact that the Bus Terminal is still tapped to temporary source pending approval of SORECO of a permanent line leading to the building. The transformer being used is a 25 KVA instead of a 50 KVA, as programmed, also included in the deduction, being accessory to the transformer in the cut-out/lightning arrester and the corresponding KWH meter.

Inspection report dated August 19, 2008, prepared by Engr. Roberto F. Rodriguez, Sr. TAS, reviewed by Danilo P. Azupardo, Supervising TAS and approved by Vidasto D. Gambito, Chief TAS, OIC RTSO on the construction of Bulan Integrated Bus Terminal undertaken by LGU Bulan, Sorsogon was received by this end on September 9, 2008 in a 4^th Indorsement by RCD Tita B. Embestro, referred to Mr. Jose Rey Binamira dated September 1, 2008.

Agency accomplishment report dated December 4, 2007 was 100% completed. While agency certificate of acceptance was dated December 4, 2007 and notice to proceed was dated December 13, 2006, after a lapsed of one hundred fifty-six (156) calendar days starting July 1, 2007 to December 4, 2007.

COA’S RECOMMENDATION:

Require S.C. Baldon Construction and Supply represented by Shirley R. Baldon to rectify the unaccomplished deficiency of 0.58% or refund the equivalent amount of P191,536.13 cited on the inspection report abovementioned dated August 19, 2008.

LGU’S COMMENT:

The Local Government of Bulan has notified the Contractor of this particular finding. The Office of the Municipal Engineer has been tasked to coordinate with the contractor and implement any and all measures necessary to correct the deficiency mentioned.

The Commission on Audit shall be notified of the accomplishment.

AUDIT OBSERVATION MEMORANDUM NO. 2

AUDIT OBSERVATION MEMORANDUM NO. 2. The Municipal Government of Bulan, Sorsogon failed to secure/apply for Land Use Conversion and Exemption Clearance from Agrarian Reform Regional Office of the lot donated by Mrs. Anecita O. De Castro property with an area of one (1) hectare on the site of Bulan Bus Terminal located at Brgy. Fabrica, Bulan, Sorsogon in violation of DAR Administrative Order (AO) No. 1 series of 2002 and AO NO. 6, series of 1994 as amended by AO No. 4, series of 2003, respectively.

DISCUSSION:

Comprehensive Rules on Land Use Conversion pursuant to Section 1 of AO No. 1, series of 2002 provides that: “The conversion of agricultural lands to non agricultural uses” shall be governed by the policy that (1.1) “that state shall preserve prime agricultural lands to ensure food security, (1.2) xxx and (1.3) conversion of agricultural lands to non-agricultural may be allowed only when the conditions prescribed under R.A. 6657 and/or R.A. 8435 are present and complied with.”

Section 4.4.4 of AO No. 1 series of 2002 states that “all agricultural lands with irrigation facilities” are areas non-negotiable for conversion. The applicant shall submit in sixtuplicate the following documents in six (6) separate bound folders [one (1) original set and five (5) photo copy sets] with table of contents and page number of all documents including photographs, sequentially numbered, except for maps and development plans, etc.

a) Official receipt showing proof of payments of filing fee and inspection cost;

b) Duly accomplished application for conversion subscribed and sworn to before a notary public or any person authorized to administer oaths;

c) Project feasibility study;

d) Certification from DENR Community Environment and Natural Resources Office (CENRO) that the landholding has been classified as alienable and disposable;

e) Socio-Economic Benefit – cost study of the proposed project;

f) That applicant has not undertaken and shall not undertake premature development prior to issuance of a conversion order;

g) Certification from the HLURB Regional Office on the natural zoning or classification of the land subject of the application on the approved comprehensive land use plan citing (1) the municipal zoning ordinance number; (2) resolution no. and date of approval by HLURB or the Sangguniang Panlalawigan concerned;

h) The ocular inspection shall be conducted on the property by Regional Center for Land Use Policy Planning and Implementation (RCLUPPI) / Center for Land Use Policy Planning and Implementation (CLUPPI) – to verify the veracity of information contained in the application for land use conversion and existence of farmers agricultural lessees, share tenants, farmer workers, actual tillers and/or occupants on the subject land.

Administrative Order No. 4, series of 2003 – Rules on Exemption of Lands from CARP Coverage under Section 3 (c) of R.A. No. 6657 and DOJ Opinion No. 44 Series of 1990 in the case of Natalia Realty versus DAR (12 August 1993, 225 SCRA 278) opines that with respect to the conversion of agricultural lands covered by R.A. 6657 to non-agricultural uses the authority of the DAR to approve such conversion may be exercised from the date of its effectivity, on June 15, 1988.

In order to implement the intent and purpose of the provisions of the aforecited laws these guidelines are hereby issued.

For public notice, the applicant . . .

· Announcement that the applicant is applying for exemption;

· Complete name(s) of the landowner(s) and applicant(s);

· Total area and exact location of the exemption proposal;

· Date of filing of the applicant for exemption;

· Deadline of posting of billboard;

· Deadline for filing of protest;

· Address of DAR offices where resident oppositors may conveniently file their protests;

· Address of the approving authority;

· Date of ocular inspection, which shall be left blank, and which the applicant shall fill up after the MARO determines its exact date, but not later than seven (7) days before ocular inspection day; and

· Date approval or denial of the application, which shall be left blank, and which MARO or applicant or any party-in-interest shall fill up after approval or denial of the application.

A letter request of confirmation dated August 20, 2008, was sent to Regional Director of DAR Agrarian Reform Regional Office, Region V, Lakandula Drive, Legaspi City. In reply to our letter of confirmation, a certification was issued dated Sept. 1, 2008, received by this end on Sept. 05, 2008, which showed that based on their records, no application for Land Use Conversion pursuant to DAR AO No. 1, series of 2002 nor an Application for Exemption Clearance pursuant to AO No. 6 series of 1994 as amended by AO No. 4 series of 2003 were filed nor pending that office pertaining to Bulan Bus Terminal, which lot was donated by Ms. Aniceta O. De Castro property located at Brgy. Fabrica, Bulan, Sorsogon.

COA’S RECOMMENDATION:

Require the Municipal Government of Bulan, Sorsogon to justify their failure to secure/apply for land use conversion and exemption clearance from DAR Regional Office pursuant to the provision of R.A. 6657 and 8435in so far as AO No. 1 series of 2002 and AO No. 4 series of 2003, amending AO No. 6 series of 1994.

LGU’S COMMENT:

The Local Government of Bulan, Sorsogon implemented the project on the particular site at Barangay Fabrica banking on the provisions of the Municipal Zoning Ordinance, Municipal Ordinance No. 99-012, series of 1999. Section 7 states that “. . .built-up zones shall include Agricultural Zones, Socialized Housing Zones, Strategic Agriculture and Fishery Development Zones, Industrial Zones, Forest Zones, Proposed Railway Line Road Networks, Rivers or Creeks, Municipal Boundaries of Magallanes and Matnog and Ticao Pass. Built-Up Zones shall be in the Blocks or strips. Potion of built-up area for barangays along the highway of Zone 7 to Cadandanan in the North and Fabrica to Sta. Teresita in the East can be utilized for residential and commercial purposes, except for irrigated rice fields. . .”

The lot occupied by the Bulan Integrated Bus Terminal had been idle, untilled and unirrigated for more than five (5) years prior to its transfer to the LGU.

Nevertheless, the local government has instructed the offices concerned to apply for Land Use Exemption Clearance with the Agrarian Reform Regional Office.