Malversation raps eyed vs. execs w/ unsettled advances

Press Release
August 20, 2010

QUEZON CITY  –  If you think Ombudsman Merceditas "Mercy" Gutierrez’s "no liquidation, no salary" policy shows no mercy to public officials and employees who fail to account for cash advances, think again.

House Deputy Majority Leader Roman Romulo has proposed to amend the Revised Penal Code and specify that any government official or staff who is slow to settle an advance could potentially be liable of the more serious offense of malversation or the criminal misuse of public funds.

Romulo’s proposal is contained in House Bill 2009, which provides that the failure to liquidate a previous advance inside prescribed deadlines shall be "prima facie" evidence of malversation or misappropriation of the fund received.

"This is about improved governance. It is definitely very bad governance to have such a staggering amount in unsettled advances" said Romulo, who represents the lone district of Pasig City.

Gutierrez earlier asked nine agencies to withhold the salaries of their personnel who had been remiss in liquidating combined advances worth almost P2.4 billion.

"The immediate liquidation of all cash advances is supposed to be our first line of defense against the potential misuse of public funds. So we really have to build up enforcement of and compliance with existing laws and rules with respect to the settlement of advances," Romulo said.

Under existing laws, the failure to liquidate advances inside 60 days is actually punishable by up to two years and four months in prison, or a fine of up to P6,000, or both, according to Romulo, a lawyer by profession.

"Also under the Revised Penal Code, an official with an unsettled advance cannot lawfully leave the country. Should the official depart without clearance from the Commission on Audit, he or she faces up to six months in prison or a fine of P1,000, or both," Romulo said.

"There are also limits to advances. An official with an unsettled prior advance cannot obtain a new advance," Romulo said.

Once enacted, Romulo’s bill would effectively make public officials who fail to liquidate advances potentially liable of the more serious offense of malversation or misappropriation of public funds, which carries with it up to life in prison, depending on the value of the unliquidated amount.

Under the bill, a public officer or employee has to liquidate a cash advance, depending on the purpose, within a defined period, as follows:

For salaries, wages, etc. - within 5 days after each 15th day/end of the month pay period;

For petty operating and field expenses - within 20 days after the end of the year;

For special operations, and operating expenses or purchases of supplies, materials and the like in an amount exceeding P100,000 - 20 days after the completion of operation or delivery and acceptance of the supplies, materials and the like;

For local and foreign travels - within 15 days and 60 days, respectively, upon return to official station; and