ECOLINK Philippines

PROJECT COMPLETION REPORT

ON THE

ANTI-CORRUPTION AND TRANSPARENCY INITIATIVE RE: GOVERNMENT VEHICLE MONITORING

IN

OROQUIETA CITY, MINDANAO PHILIPPINES

September 21, 2007

ABBREVIATIONS

ACT - Anti-Corruption and Transparency Project ABC - Association of Barangay Councils ADB - Asian Development Bank BAC - Bids and Awards Committee CEO - City Engineer’s Office- Oroquieta City CLGOO - City Local Government Operations Office CMO - City Mayor’s Office- Oroquieta City COA - Commission on Audit COMELEC - Commission on Elections CSO - Civil Society Organization DepEd - Department of Education DILG - Department of the Interior and Local Government FOND - Federation of NGO’s for Development GPRA - Government Procurement Reform Act GSO - General Services Office- Oroquieta City JGW - Junior Graft Watch LGU - Local Government Unit LTO - Land Transportation Office NGO - Non-Governmental Organization OCCAC - Oroquieta City Coalition Against Corruption OMB - Office of the Ombudsman Mindanao PMC - Project Monitoring Committee PNP - Philippine National Police PO - People’s Organization PTF - Partnership for Transparency Fund SP - Sangguniang Panlungsod

CURRENCY VALUES AND EQUIVALENTS

Currency Unit: Philippine Peso (PhP)

US $ Exchange Rate:

At Appraisal: At Project Completion: 1 US $ = 50 PhP 1 US $ = 43 PhP

CONTENTS

BASIC DATA i EXECUTIVE SUMMARY ii I. PROJECT DESCRIPTION 1 II. EVALUATION OF PROJECT FRAMEWORK & IMPLEMENTATION

A. Relevance of Project Framework 2 B. Project Outputs 2 C. Project Expenditures 6 D. Project Timetable 7

III. IMPACTS ASSESSMENT 10 A. Relevance 10 B. Efficacy in Achievement of Objectives 10

1. Increase of Citizens’ Participation 2. Reduction of Expenditures on Gasoline and

Lubricants and Corrupt Practices in Vehicle Use 3. Strengthening LGU’s Compliance to Procurement Laws

C. Efficiency in Achievement of Goal D. Sustainability E. Replicability F. Other Impacts

1. Local Policy and Administrative Reforms 2. Socio- cultural Impacts 3. CSO Empowerment 4. Addressing Other Specific Corruption Issues IV.OVERALL ASSESSMENT AND RECOMMENDATIONS

A. Overall Assessment 12 B. Problems Encountered 12 C. Lessons Learned D. Recommendations 13

APPENDIXES 1. Government Vehicle Monitoring Intervention Model 14 2. Project Logical Framework 17 3. Example of Approved Barangay LGU Ordinance on Vehicle Use & Maintenance Guidelines 4. Indicative Output Assessment 5. Draft City LGU Ordinance on Vehicle Use and Maintenance 6. Selected Photo Documentations 7. LGU Expenditure Data 8. Case Study: A Councilor’s Ecstasy 9. Final Audit Report

BASIC DATA

Project Title: Anti- Corruption and Transparency Project in Oroquieta City, Province of Misamis Occidental, Philippines (ACT- OROQUIETA) Estimated Project Period: December 2006- June 2007 (7 months) Estimated Total Budget: Total Cost: $21,657 (USD) - Php1,082,850 Local Counterpart: $5,157 (USD) - Php 257,850 Amount Requested: $16,500 (USD) - Php 825,000 (Exchange Rate: $1: Php 50)

Proponent Name and Address: Environmental Cooperation and Linkages Inc. Main Office: Purok 1, JP Quijano St, Upper Loboc, Oroquieta City, Misamis Occidental, Philippines Website: www.ecolink-asia.org Email: main@ecolink-asia.og Date Founded: June 1995 Date Registered: May 29, 1996 Type of Registration: National Securities and Exchange Commission S.E.C. No. GNO 96-0018

EXECUTIVE SUMMARY

The Anti-Corruption and Transparency Project is an initiative of the Environmental Cooperation and Linkages Inc. (ECOLINK) undertaken through a $16,500 grant support from the Partnership for Transparency Fund/ADB/WF. The Project is implemented in coordination with the Department of the Interior and Local Government, the City Government of Oroquieta and other concerned agencies. The project hopes to prevent and/or curb corruption in the local government through a series of components that will reduce wastages of funds as a result of corrupt practices relevant to vehicle procurement, use and maintenance, increase citizens’ participation in such efforts, and strengthen relevant local mechanisms. This evaluation report contains the assessment of outputs and impacts of key project activities as outlined in the Project Implementation Plan covering the period of December 1, 2006- July 31, 2007. Also included herein are the project’s lessons, recommendations and constraints within the period as well as the measures undertaken by ECOLINK to mitigate such constraints. The activities reported herein are closely integrated with the Project Grant Agreement covering the whole project implementation period. The issue of corruption in the procurement, use and maintenance of government vehicles by certain officials has gone to an extent where millions of pesos worth of public funds are wasted. For example, the Office of the Ombudsman has recently announced that it would file charges of corruption to 50 high-ranking government officials due to illegal use of government vehicles for private purposes. In addition to, the Office of the Governor of Misamis Oriental has just recently been reported to have spent at least 12 million pesos of public funds to illegal vehicle expenditures including diverting gasoline budgets into private uses. This means that on a nationwide scale, millions and even billions of pesos worth of public funds in the Local Government Units have been squandered, unchecked, concealed from public scrutiny. Republic Act 9184, otherwise known as the Government Procurement Reform Act, defines strict rules on procurement of goods. The law requires, among others: 1) posting and advertising of procurement, 2) easy accessibility of documents related to procurement transactions, 3) presence of third party observer in all stages of procurement.

Yet, Local Government Units, including Oroquieta City, have visible gaps in the implementation of the procurement law. Specifically on the aspect of vehicle procurement, major requirements like the presence of third party observer in pre-procurement, pre-bidding, bid submission/ bid opening, bid qualification and bid

awarding have not been followed. This practice makes the whole procurement process vulnerable to corruption. The visible indicators of corruption include overpriced vehicles and dubious bid awards. Since the enactment of the Local Government Code of the Republic of the Philippines (Republic Act 7160), local government units are given autonomous dynamisms in its operations including budgetary allocations and revenue generations. But simply because there are weak, if not totally absent, mechanisms in preventing corruption, worsened by the minimal avenue of citizen participation in curbing corruption, corruption in the local government level can be as worst as those which are entirely visible on the national level. As the Anti-Corruption and Transparency initiative goes into full swing, many specific issues of corruption in the community have been dug out, discussed publicly and resolved through constructive reforms in existing policies and institutional structures. By and large, the ECOLINK has been able to achieve the objectives specified in the project framework. Citizen participation in anti-corruption activities as well in as issues concerning the services of the local government and local offices of national line agencies has extensively increased through the project. Local government expenditures in gasoline and lubricants have so far significantly reduced and corrupt practices in vehicle use have been effectively prevented. The presence of both a conscious and vigilant citizenry and a reform-oriented government effectively combats the seemingly invincible culture of corruption. But the challenge ahead is more serious than the initiative itself. The ECOLINK and its partner institutions including the newly-established anti-corruption network – the Oroquieta City Coalition Against Corruption- must translate the initial gains of the project into a much wider and more sustainable scope encompassing a larger number of government agencies and cities and involving several more civil society organizations within a very limited list of potential funding resources.

I. PROJECT DESCRIPTION

The culture of corruption in the Philippines is undeniably rampant and seemingly incurable. Public funds are being wasted in several ways and basic services and developmental programs aimed at uplifting the lives of people are being set aside. Despite several anti-corruption programs initiated by the government over the past two decades, bureaucracies from the national to down the local offices remain resilient against the initiatives against corruption. Thousands of corruption cases are hardly moving forward in the Office of Ombudsman. In such a condition, no amount of International Aid can help ease up the country’s widespread poverty and the never-ending insurgency, most especially in the island of Mindanao. The City of Oroquieta is a sub-rural/ sub-urban area in the northern part of Mindanao. Agricultural production remains the backbone of its economy with majority of its population depending on individual, traditional farm production for a living. There are no significant industrial or commercial plants operating in the locality and nearby municipalities. The Local Government of Oroquieta City depends mainly on the central government’s Internal Revenue Allotment for the delivery of services to its constituents. But it can be observed that despite its having a limited budget, public funds are also wasted in several ways and dimensions. A particular aspect of this is on the practices of and expenditures for government vehicle procurement, use and maintenance. Budgetary allocations intended for community-level socio-economic development are squandered instead for the purchase of gasoline, overpriced vehicle costs and vehicle misuse. The existing local mechanisms on curbing internal corruption are weak, if not totally absent. Also, citizens of the city do not have the available medium to express criticism on corruption. If such abuses continue unchecked, millions of pesos from people’s taxes will be totally pocketed by a few greedy officials and personnel. This project hopes to prevent/ curb corruption in the local government level through a series of components that will increase citizen participation on the issue, strengthen local mechanisms, and reduce funds

The ECOLINK has adopted the following Key Project Implementation Strategies to achieve the identified goal and objectives:

1. Measure the extent of funds wasted/ corrupted on vehicle procurement, use and maintenance by the Local Government of Oroquieta.

2. Develop a culture of vigilance in the locality against corrupt practices of government offices including the misuse of government vehicles.

3. Design and implement creative activities that will foster the active participation of the youth, media and local artists in the campaign against squander of public funds.

4. Develop and utilize the Filipinos’ obsession to “texting” (SMS) services of cellular phone technology.

5. Develop and utilize Local AM Radio as a major communication channel to the rural villages in the active campaign against misuse of government vehicles and corruption, per se.

6. Develop cooperation among CSO’s, NGO’s, people’s organizations and private institutions in the anti-corruption campaign.

7. Design and implement interventions and activities that will generate positive responses to the local initiatives against corruption.

8. Utilize the inner expertise of the ECOLINK personnel for voluntary services in the project.

9. Regularly supervise and monitor the different programs and evaluate the progress of every activity in order to assure success of the project.

The Components of this project are as follows:

1. Capability-building

1.1. Expenditures Analysis Workshops 1.2. B.A.C. GPRA Compliance Training

1.3. Conference on Corruption in the LGU 1.4. MOA Signing/ Project Launching

2. Information and Education Campaign(IEC)/ Advocacy 2.1. Photojournalism Contest 2.2. Newsletter Publication 2.3. Local Radio Program

2.4. Short-play Competition 2.5. Posters

3. Policy Formulation and Reforms 3.1. Citizen’s Feedback mechanism 3.2. Policy Reforms

4. Administration, Supervision, Monitoring and Evaluation

II. EVALUATION OF PROJECT FRAMEWORK & IMPLEMENTATION A. Relevance of Project Framework The project design, which comprises four interrelated components: (1) advocacy/ awareness; (2) capability-building to strengthen institutions; (3) policy reform advocacy; and, (4) monitoring and evaluation- is noticeably sound and appropriately formulated. It addresses specific areas of corruption in the Philippine government particularly on the use, procurement and maintenance of vehicles in local government units. Consistent with the project criteria of the Partnership for Transparency Fund, the ECOLINK project has directly contributed to the reduction and prevention of corruption. In addition to, the project framework is unique as such that it utilizes simple and participatory processes in identifying and preventing corrupt practices in local government units and its intervention model can be replicated in any community-based anti-corruption initiatives anywhere in the world. Furthermore, it shows that sincerity and credibility of the institution and the key personalities within are equally important factors for the success of any initiative. Lastly, the project has empowered not only ECOLINK but the whole civil society of Oroquieta City in their involvement in the affairs of the local government especially in ensuring compliance to procurement laws, project monitoring and policy reforms. B. Project Outputs The evaluative assessment of project implementation is based on targeted outputs of identified activities at project development stage, mid-term assessment, and final periodic report. The logical framework of the project is used as the primary basis of analysis (See Appendix 2).

1. Capability –building

1.1. Expenditure Analysis Workshop The project has been able to attain the purpose of this activity thereby getting the reasonable proof of the extent of corruption in gasoline and lubricant expenses.

1.2. Bids and Awards Committee (B.A.C.) GPRA Compliance Training Through this component, the city will take a step further in promoting GPRA compliance. As of July 2007, the ECOLINK and members of the local transparency network have been sitting as regular observers in Bids and Awards Committees (BAC) of the City Government of Oroquieta, Department of Education- Oroquieta Division, Department of Education- Misamis Occidental Division, and the Department of Agrarian Reform. Also, BAC’s in the 47 Barangays of Oroquieta City have been activated with compulsory presence of CSO Representative.

1.3. Conference on Corruption in the LGU The combined outputs of all major components like the LGU Expenditures Analysis, Actual Vehicle Misuse Documentation and GPRA Compliance Assessment is a “bombshell” that will trigger the heated public participation on the issue of corruption. People’s organization, NGO’s, government offices and all other sectors will gather to come up with a unified voice. This component has been fully realized. The activity has been called Exit Conference and Network launching. The Exit Conference was held on July 4, 2007 at the Misamis Occidental Aquamarine Park and Resort in Sinacaban, Misamis Occidental. Ms. Rory Tolentino of the Asia Pacific Philanthropy Consortium (and a member of the PTF Board) was present during the activity. She gave a Keynote message. At least 78 representatives from NGO’s and PO’s and 24 guests were present during the Conference. The Department of the Interior and Local Government represented by its Provincial Director Teodoro M. Paller provided an Input entitled “Corruption in the LGU’s: Present Thrusts and Future Perspectives of the DILG. The input is quite important as it tries to establish a concrete connection between the mandates of the DILG and the ACT Project’s goal. Paul Pastrano Gangoso, ECOLINK Executive Director, presented a summary of the project which highlights some of the most important achievement and impacts of the project. Also, Dr. Gemma Losbaños of the Department of Education gave a very educational input: Teaching Young Citizens against the Culture of Corruption. The church and business sectors also gave their respective views on the impacts of the Act project as well as their commitment to end corruption in the public office. The Special Program for the Arts gave a

number of cultural presentations in between inputs during the conference. The City Mayor through his Executive Assistant Mr. Carlito Decina gave a message of thanks and support to the ECOLINK for the latter’s programs including the ACT project. More importantly, the Ombudsman Mindanao himself, Mr. Humphrey Monteroso, was present during the conference. He gave a detailed insight on the importance of citizen-based anti-corruption efforts and promised to carry out precedent cases for those who have violated corruption laws as documented by the ACT Project. His presence provided the NGO’s and PO’s present during the conference a view of the seriousness of the Office of the Ombudsman in realizing the latter’s mandates. 1.4. MOA Signing/ Project Launching The MOU Signing/ Project Launching Ceremony was held on December 15, 2006 at the Bahay Kamayan Restaurant, Oroquieta City Proper. The City Mayor of Oroquieta failed to participate in the Launching Ceremony due to conflicting engagements. The Vice Mayor, however, had been able to attend representing in behalf of the whole Sangguniang Panlungsod (City Council). This development had prompted last minute adjustments to the original activity outputs. 2. Information and Education Campaign/ Advocacy

2.1. & 2.4 Photojournalism Contest and Short Play Competition (Plus Poster-making Contest)

On March 26, 2007, the ECOLINK with the full cooperation of the Department of Education held the inter-school short-play and photojournalism contest. The Special Program for the Arts Guild (SPA) showed –off their skills with a number of cultural presentations. These come in the form of interpretative and contemporary dances. The City Mayor had extended his support to the project. Although beyond the target activity of the project, the Department of Education had initiated a poster-making contest on the same day of the short-play competition. The contest had been able to attract 23 artists from the high school and 11 future cartoonists/artists from the elementary. According to Department of Education attendance, at least 590 people (students, teachers, city hall employees) witnessed the whole –day event. And due to its success, the Department of Education had decided to include the short-play and photojournalism contest in their annual calendar of activities.

2.2. Newsletter Publication

Four issues of “Corruption Watch” newsletter have been published with at least 100 copies per release. Since the time ECOLINK has created its website, the newsletter has recorded almost a thousand downloads on-line. Even as the project ends, the newsletter shall continue publication.

2.3. Local Radio Program “Bantay Kurapsyon” Since it first aired over the radio, the “Bantay Kurapsyon” has since then become the people’s favorite, and the most respected and credible public affairs radio program in the province. With the support of the Partnership for Transparency Fund (PTF), ECOLINK is proud of the program’s unexpected impacts to the daily lives of the people and the affairs of the local government of Oroquieta. Although focusing on the misuse of red-plated vehicles, expenditures on gasoline and procurement processes of the local government, the “Bantay Kurapsyon” also accommodates issues and concerns that affect the people most, especially those involving negligence of government agencies and personnel. For instance, the employees of the “Bunotex” Coconut Processing Plant in Barangay Upper Loboc, Oroquieta City complained that more than 200 of them have not been able to receive their respective salaries since November of 2006. Through the “Bantay Kurapsyon”, the labor sector and the management have come to terms of the problem. Another issue addressed by the “Bantay Kurapsyon” was the use of government vehicle by the Brgy Captain of Malindang for transporting corn produce from the community to the market and the alleged collection of “passenger fees” to those who would ride along. The people of Malindang thanked the program so did the Brgy. Captain for being given a chance to explain her side on the program. Another complaint acted upon by “Bantay Kurapsyon” was the alleged collection of money from ukay-ukay (2nd hand goods) by certain police officers. The broadcasters raised the issue to the PNP Council of Elders and the City Police acted on the issue. Although the officers involved were not sanctioned, the collection of money nonetheless had stopped. The “Bantay Kurapsyon” Radio Program shall continue to heat the waves even if the ACT project ends by July. Also, the said radio program continues to enjoy a very high listener’s rating and the numbers of responses in the form of text messages continue to soar even higher and higher every passing week. Within the period of June and July, three major issues are tackled in the program. These are:

• Complaints of students, parents and teachers against a school principal allegedly inflicting psychological and physical harm to students.

• Complaints against the rice distributed by the National Food Authority containing harmful wastes of insects and agri-animals and quota to stores.

• Complaint against the failure of the Water District to finish road improvements caused by water pipeline repairs.

The following are the results:

• The Department of Education has already ordered a temporary relief of the principal after conducting an investigation triggered by the radio program. The “Bantay Kurapsyon” and the newly-established Oroquieta City Citizens Coalition Against Corruption facilitated the complainants to raise their complaints to the proper authorities. A new principal shall be delegated.

• The NFA reviewed all rice distribution and cut-off maximum acquisition

quota to stores.

• The roads were immediately repaired.

2.5. Posters

A “Conscience Poster”, designed to increase awareness among the people as well as develop ethical consciousness among those who have been using government vehicles improperly, was printed and distributed in 300 copies. 3. Policy Formulation and Reforms

3.1. Citizen’s Feedback mechanism

The Bids and Awards Committee has already considered the presence of third party observer in all bidding processes. ECOLINK is proud that a member of the Citizens Coalition against Corruption sits in the BAC. Also the Project Monitoring Committee, a mandatory special body, has been activated and ECOLINK actually sits in the key position. The Project Monitoring Committee is the body that is empowered to monitor the implementation of all local government projects and formulated recommendations from time to time.

3.2. Policy Reforms Specific measures have been adopted by the LGU to prevent widespread corrupt practices like gasoline diversions/ theft, vehicle misuse, among others. The Sangguniang Panlungsod is now finalizing a Committee Recommendation on the Proposed “Ordinance Setting the Guidelines in the Use, Procurement and Management of LGU Vehicles”. Barangay LGU’s are now adopting a specially drafted ordinance for their vehicles. The City Mayor has already issued an Executive Order organizing the Project Monitoring Committee including ECOLINK’s Executive Director. Also, Bids and Awards Committees of DepEd, 47

Barangays and the Department of Agriculture have already considered representation from the CSO. Local government vehicles have already been labeled with huge logos of the City Government and a marking “for official use only”. Trip tickets have already been utilized most especially at the City Engineer’s Office. LGU Vehicles not assigned to heads of offices are also now being parked at the city hall premises every evening. 4. Administration, Supervision, Monitoring and Evaluation Timely monitoring and supervision have been carried throughout the whole project period implementation. ECOLINK has managed well the resources of the project and has been able to carry out the necessary adjustments from time to time. C. Project Expenditures The project is estimated to cost 1,082,850 pesos with 257,850 as ECOLINK equity and 825,000 PTF grant during the project development stage. ECOLINK has received two grant tranches at 366,039.20 pesos on December and 353,478.10 pesos on April. The total actual grant values received from PTF is 719,517.30 pesos. A remaining $1,700 receivable from PTF (est. 73,100) will give a total of 792,617.30 pesos PTF grant support to ECOLINK for the Project. Note that the actual value of grant is 32,382.70 pesos lesser that the agreed estimated amount at appraisal period. Total actual ECOLINK expenditure for the project is 285, 021.95, and about 27,171.95 higher than the project appraisal value. D. Project Timetable

Figure 1: Actual Timeframe/ Schedule (Monthly) December January February March April May June-July Project Activities 1.MOA Signing / Project Launcing x 2.Photo-journalism Contest x 3. “Conscience Posters” Distribution x 4.Inter-school short-play contest x 5.Publish Monthly Newsletter x x x 6. “Bantay Kurapsyon” Radio Program x x x x x x x 7.Exit Conference/ Network Launching x 8.Local Govt Expenditure Workshops x x x 9.BAC GPRA Compliance Training x 10.Evaluation Report x 11.Equipment Purchase x 12.TWG Meetings x x x x x x x 13. Others x x x x x x x

III. IMPACTS ASSESSMENT

A. Relevance The Commission on Audit (COA) says that the Philippine government loses around 2 billion pesos every year due to corruption (Civil Service Commission: 1998). As Philippine Daily Inquirer reports on July 10, 1999, the government loses 1.4 trillion in a year in an average of 100 million pesos every day since the Office of the Ombudsman begins investigating corruption cases on 1998. Thus, the pervasiveness of corruption in the Philippines has plagued the whole system of bureaucracy from the highest levels of offices up to the lowest local government units. Based of rough estimates, the city government is spending 20% of its actual gasoline expenses for personal use of a officials and employees. So on 2006, 1,847,965.61 of the annual gasoline appropriations is lost to corruption. If all 136 cities in the Philippines lose the same amount, around 251,323,322.96 pesos is lost to corruption every year due to misuse of government-issued vehicles in local governments alone. The Government Vehicle Monitoring System intervention model (See Appendix 1) designed and used in the Anti-Corruption and Transparency is consistent with existing anti-corruption thrusts and principles of the Office of the Ombudsman, the Department of the Interior and Local Government and key non-governmental institutions including the Asian Development Bank and the World Bank, two major partners of the project.

1. Reinforcing the Office of the Ombudsman’s Oplan Red Plate The Office of the Ombudsman has an existing campaign dubbed as “Oplan Red Plate” geared towards penalizing government officials and employees using red-plated government-issued vehicles. The campaign includes actual surveillance to gather material proof of vehicle misuse and filing of necessary administrative and criminal cases against erring government personalities. It also maximizes the powers of the Office of the Ombudsman to temporarily relieve these officials. As of June 2007, the Office of the Ombudsman has so far gathered no more than 200 photos and video footages of actual vehicle misuse all over the country as their website announces so. At least 27 government officials have so far been relieved of duty for their involvement in the prohibited act. The participatory approach of vehicle monitoring in this project reinforces a major shortcoming of the Ombudsman campaign. Instead of deploying government-paid personnel (who are often already loaded with excessive administrative worked) in actual surveillance and documentation of red-plates, the ACT initiative utilizes existing institutions and social strata to monitor, document and report

vehicle misuse when and where it actually happens. These key players include public utility drivers, bartenders and waiters in entertainment houses, government employees, students and teachers. Installing a mechanism like the “Bantay Kurapsyon Radio Program” or Text Hotline to collect and consolidate the reports from citizens themselves completes the whole monitoring process at very minimal if not totally no cost at all. This very important aspect of the intervention framework utilized by ECOLINK has been appreciated by no less than Hon. Humphrey Monteroso, Deputy Ombudsman for Mindanao during his official visit to the project Exit Conference.

2. Reinforcing accounting and auditing systems The Commission on Audit (COA) is empowered to enforce the provisions of R.A. 7645 or Government Accounting and Auditing Manual. But the low pace of auditing process has provided elected officials the avenue to veer away from accountabilities during their term of service. Also, the retro-active characteristic of the agency in identifying corruption issues involving government funds and properties (ie. Excessive gasoline and lubricant expenses, overpriced procurement of automotive services and parts) cannot effectively prevent corrupt practices in the local government. With the independent expenditure monitoring approach used in the project, the public will be able to get a timely and actual view of public funds spending by a particular office despite the absence of computerized financial information systems. Moreover, random case studies of vehicles can compute an average reasonable corruption rating for each identified item and office.

3. Identifying major policy and administrative gaps in government and instituting necessary reforms The intervention model used in the project is very significant in terms of identifying major policy gaps at the local government in terms of implementing applicable guidelines in the use, procurement and maintenance of red-plated vehicles. It also figures out weaknesses of the LGU’s in terms of compliance to procurement laws and accounting and auditing rules as well as of involving the citizenry in the affairs of the government. The model ordinances for Barangay LGU’s and City LGU’s are crucial to the institution of necessary reforms in respective bodies. B. Efficacy in Achievement of Objectives

1. Increase of Citizens’ Participation in anti-corruption campaigns The project has extensively increased citizen participation in local government affairs most especially those concerning issues of corruption and anomalies.

Before the start of the Anti-Corruption and Transparency initiative, there is not one means whether through media or institutions where people can express their views and opinion as well as directly participate in corruption issues. The following table best explains the figures of citizen participation in specific project activities.

Table 1: Summary of Responses

As of September 5, 2007, ECOLINK has received a total of 1197 SMS, 179 Phone Calls and 55 Hand-carried letters relevant to the project. At least 906 individuals have directly participated in project activities. Also, ECOLINK has mobilized and partnered with 71 organizations- NGO’s, PO’s and important Government agencies.

Table 2: Sources of SMS Reports

Month Students/ JGW

Drivers Waiters/ Bartenders

Employees Anonymous Total

December 3 3 0 2 3 11 January 21 11 4 4 31 71 February 4 2 0 6 11 23 March 7 0 0 0 4 11 April 4 0 2 3 6 15 May 0 0 0 3 2 5 June 2 0 0 0 1 3 July 1 1 1 2 1 6 August 1 1 0 3 4 9 September 1 0 0 2 1 4 Total 44 18 7 25 64 158

Attendance in Activities Month Text Messages

Calls Letters Individuals Organizations

December 47 4 1 57-Launching/ 11-Workshop 7-Student Publications/ 11-NGO’s/ 3-Media/ LGU

January 216 7 3 February 78 2 1 13-Workshop March 27 6 0 98-Contestants/ 590-

Audience/ 11-Workshop 8-Schools/ DepEd/ LGU April 30 6 0 May 13 2 0 June 119 25 6 July 107 39 18 78-Exit Conference 27-NGO’s & PO’s/ DILG/

DepEd/ City Govt/ DENR/ Ombudsman

August 261 76 21 September 299 12 5 48-Graft Watch Training 9- JGW’s Total 1197 179 55 906 71 Organizations

2006

20072006 2007

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

appropriations expenses

Most SMS reports received by the Project Management Team come from anonymous sources while students contribute 44 out of the 158 total messages. Government employees, public utility transport drivers and workers in entertainment houses contribute significantly.

2a. Reduction of Expenditures on Gasoline and Lubricants The following graph shows the comparative figures of mid-year expenditures in vehicle misuse as of June 2006 and by June 207.

Figure 2:

Comparative Data 2006/2007 Appropriations vs Actual Expenditures

On June 2006, the City Government has exceeded a total of 1,692,081.12 pesos from its original appropriation for the whole year. As of June 2007, the City Government still has remaining 311,572.27 from its calendar year appropriations. In brief, there is a pattern of savings in expenditures by the LGU. (Note: The data used herein are unofficial data derived from raw figures manually available. Other factors may include fewer projects within the period January – June 2007) It must be noted that the City Engineer’s Office (CEO) receives the highest amount of appropriations in terms of gasoline and lubricants as of years 2006 and 2007. It has the highest spending rate of 99.9 % of its annual budget. On the other hand, the City Social Welfare and Development claims the highest savings of 80.02% from its annual gasoline allocations. The Barangay LGU’s get the highest figures of expenditure reduction from January - June 2007, all 47 barangays have only spent a total of 276,000 pesos for gasoline and lubricants or 371,000 pesos lower than the previous year.

2b. Reduction of Vehicle Misuse

28

138

40 20 24 8 5 9 10 6

52

226

81

33 3615

150 164

358316

0

100

200

300

400

D J F M A M J J A S

Total Citizens ResponsesTotal Reports of Vehicle Misuse

This aspect of project objective gets the highest level of project accomplishment simply because ECOLINK has able to establish a material proof of reduction in cases of vehicle misuse reinforced by the results of the post-project perception survey conducted on July 2007.

Table 3: Vehicle Misuse Report

The table above shows the reducing figures of vehicle misuse cases in Oroquieta City. Even on May 2007 when the national and local elections fell, there are only 8 reports of vehicle misuse making Oroquieta the only city where not one government vehicle is used by administration political candidates. It also shows a trend of increasing percentage of photos submitted from citizens. To say that the reducing figures maybe caused by decreasing popularity of the project is absolutely incorrect as the graph below can attest.

Figure 3: Comparative Data

Citizen Responses vs. Vehicle Misuse Reports

Photos Gathered Month Citizens ECOLINK

Total Photos

Text Reports

Total Reports of Vehicle Misuse

December 1 16 17 11 28 January 8 59 67 71 138 February 6 11 17 23 40 March 6 3 9 11 20 April 6 3 9 15 24 May 2 1 3 5 8 June 1 1 2 3 5 July 1 2 3 6 9 August 1 0 1 9 10 September 1 1 2 4 6 Total 33 97 130 158 288

As to the offices where the reported vehicles are assigned, the following data gives us the figures:

Figure 4: Office Assignment of Reported Vehicles

Most vehicles reported are assigned to the City Government of Oroquieta while a significant number belongs to other LGU’s visiting the City. The figure above also shows the decline in the number of vehicles assigned to the Provincial Government being reported. This means that the project’s impacts goes beyond the City Government of Oroquieta. It is, therefore, safe to say the project has completely reduced corrupt practices of government vehicle use by officials and employees of the LGU.

2c. Eradication of Gasoline Reselling Gasoline reselling is the worst form of corruption related to government vehicles for it involves a direct conversion of public funds (gasoline allocation) into personal financial benefits. It has wasted around 120,600 pesos since 1997. With the project involving citizen-based monitoring and reporting, cases of gasoline reselling has been totally eradicated. No less than the buying stations attest to this fact.

0

20

40

60

80

100

120

D J F M A M J J A S

Oroquieta City Government Barangay LGU's Provincial Govt. Others

Table 4: Gasoline Reselling Reports

Month No. of Reports Est. Gasoline Quantity (L)

Value

December 7 69 3,105.00 January 4 23 1,035.00 February 2 13 585.00 March 1 13 585.00 April 0 0 - May 1 16 720.00 June 0 0 - July 0 0 - August 0 0 - September 0 0 - Total 15 134 6,030.00

The perception survey conducted for this purpose also shows that among 100 randomly selected people, all really believes that gasoline reselling no longer exists today citing the reason that those involved in such corrupt practice- both the buyer and seller- are afraid to be caught in actual act of reselling and to be reported on air and even to face criminal charges.

Table 5 Perception Survey Summary

Perception

Vehicle Misuse (%)

Reselling of Gasoline (%)

Overpriced Spare parts & Services (%)

Overpriced Purchase of New

Vehicles (%) Increased 0 0 0 0 Decreased 11.00 0 0 0 Nothing has Changed 1.0 0 9 0 Gone 88.00 100 91 0

3. Strengthening LGU’s Compliance to Procurement Laws Based on actual observations and in-depth interviews of key individuals on any development during the period covered by this report, the LGU’s Compliance to Procurement Laws has been significantly strengthened specifically on the following indicators: 1) presence of 3rd party observer in BAC and bidding processes, 2) posting and publication of bidding announcements, and 3) accessibility of bidding documents. Covering three specific government bodies, an evaluation matrix below is made and verified:

Table 6

Procurement Compliance Levels Pre- Project Intervention Post-Project Intervention Major GPRA

Compliance Indicators

Barangays City Govt Oroquieta

Natl. Line Agencies

Barangays City Govt Oroquieta

Natl. Line Agencies

CSO Representation in BAC

None

Minimal

Minimal

Minimal

Significant

Significant

Posting/ Publication of Bid Info

None

Minimal

Minimal

Minimal

Minimal

Significant

Accessibility of Documents

None None None Minimal Significant Significant

3.1. CSO Representation in B.A.C.’s Since the project has started, the ECOLINK has already received 21 invitations to sit as observer in biddings. The government offices who requested CSO Representation through ECOLINK includes the Department of Education- Oroquieta Division, Department of Agriculture, 6 Barangay LGU’s, Department of Education- Misamis Occidental Division and the City Government of Oroquieta. ECOLINK has facilitated members of the Oroquieta City Coalition Against Corruption to represent in several B.A.C.’s. This is one of the most important indicators of the maturity of government offices to comply with the provisions of the Government Procurement Reform Act or RA 9184 and open the doors to the civil society to observe in the bidding processes. The Barangay LGU’s are the worst in terms of BAC functionality on 2006. 3.2. Posting/ Publication of Bids Info The Barangay LGU’s are the most notorious of all government bodies in the posting and publication of bids. Before the project, they do not comply at all. Spare parts and automotive services acquired by these barangays have not at all undergone any bidding. The City Government has the most impressive record of considering recommended reforms from the CSO particularly on the need of adjust existing procurement processes. 3.3. Accessibility of Documents Before, bidding information and documents in the City Government of Oroquieta are rarely accessible. By now, any interested party may access procurement documents.

C. Efficiency in Achievement of Goal The goal of this project is to significantly reduce and prevent the wastage/corruption of local government funds through an anti-corruption and transparency intervention using participatory, low-cost, innovative and creative strategies. The question is: has the project been able to significantly reduce and prevent corruption in the City Government of Oroquieta? The answer is obviously, yes. This initiative has totally reduced/ eradicated corrupt practices in the use of red-plated vehicles by officials and personnel of the City Government of Oroquieta, the 47 Barangay LGU’s and national line agencies. One case study (See Appendix 10) revealed that one city official corrupts at least 3.29 liters of gasoline valued at 141.29 pesos every day due to the use of his assigned four-wheel government vehicle in transporting water to and from his farm. In his three years-term of service as a councilor he squandered a conservative estimate of 157, 707.86 pesos and causes the City Government to spend an additional 45,000 pesos for repair services and parts. In monetary value, the project has caused a reduction of expenditures by 95,000 pesos among the 47 barangay LGU’s and by 1,692,081.12 pesos in the City Government. The prevention of gasoline reselling saves the government worth 5,672 every six months and 247,680 pesos in vehicle misuse. All in all, the project has saved the LGU a total of 2,040,433.12. D. Sustainability Most of the project activities will be carried out even in the absence of continued support from PTF. For instance, the poster-making, short-play and photojournalism competitions have been included in the Annual Calendar of Activities of the Department of Education –Oroquieta City Division. The newsletter will be continually managed by ECOLINK and funded by the business sector. The radio program will be continued by ECOLINK in coordination with the Oroquieta City Press Club. The drafting and approval of ordinances setting the guidelines on use vehicle management of LGU’s ensures the sustainability of policy reforms. With the establishment of a citizen-based anti-corruption coalition, the major gains of the project will be continued and expanded. There, however, is an obvious and critical aspect of weakness in the project’s sustainability- the operation of the Oroquieta City Citizens Coalition Against Corruption. The network has very limited financial resources and other organizations do not have the capacity to contribute for its program. It is therefore important for ECOLINK to ensue that future similar projects should include strengthening the institutional capacities of local transparency networks or similar groups.

E. Replicability Civil society organizations who may wish to undertake anti-corruption strategies in local governments can utilize the Government Vehicle Monitoring intervention model designed and used by the project. The Office of the Ombusman may also be able to learn lessons of the project to improve the strategies of their Oplan Red-Plate. The combination and choice of information and education activities provides a perfect example to other NGO’s in raising citizens’ awareness and involving the citizens in addressing specific corruption issues. In fact, the Transparency and Accountability Project (TAG) of the City Government of Oroquieta and the Paglaum MPC has already studied and utilized advocacy approaches used by this project. F. Other Impacts 1. Local Policy and Administrative Reforms Barangay LGU’s in Oroquieta City have been adopting the model ordinance drafted by the ECOLINK since June 2007. As of September 5, 2007, around six of them has finally passed and approved the ordinance. (See Appendix 3) Likewise, the City Government of Oroquieta has begun developing its own guidelines in the use, management and procurement of vehicles and automotive services and parts. Heads of Offices has already issued orders to their respective personnel to refrain from using government-issued vehicles in personal purposes. The Sangguniang Panlungsod has already taken the following steps that will eventually lead into the passage and approval of the ordinance: January 2007 - Sangguniang Panlungsod (City Council) Session inviting

ECOLINK regarding issues of vehicle misuse. March 2007 - Policy formulation consultation meeting with selected

legislators. Outline of proposed ordinance drafted. May 2007 - Series of policy-formulation workshops conducted. Second

Draft of City Ordinance formulated. June 2007 - A leading supporter of the project, Atty. Lel Blanco’s term of

office ends along with 3 other supportive councilors. New councilors take oath of office.

August 2007 - Committee on Way and Means issued sponsored resolution requesting the GSO to provide an inventory of city vehicles.

September 2007 - Consultation with the new councilors regarding the proposed ordinance held unofficially.

October 2007 - Target passage and deliberation of the final draft of the city ordinance

Relative to vehicle use and management, the following specific actions are undertaken:

• City Government Logo and “FOR OFFICIAL USE ONLY” are labeled in all LGU vehicles.

• Four-wheel vehicles not assigned to Heads of Offices are parked and deposited at the City Hall premises every night and during weekends except when used for official purposes.

• City hall employee sacked from duty when caught in actual misuse last year.

• Trip tickets are now being used in offices especially at the CEO. • Barangay LGU’s have adopted restraint in the use of vehicles by

individuals and unauthorized personnel 2. Socio- cultural Impacts

Corruption as we fully understand encompasses all aspects of daily life of an individual. In societies like the Philippines where corruption has historical and cultural roots, anti-corruption initiatives like this project strikes not only the practices and legal concerns within the bureaucracy but also the moral standards of public officials and employees. The use of arts, media and others communication channels is crucial to the promotion of a culture of honesty, integrity and accountability among the ordinary citizens who demand equitable and sincere delivery of services from the government and among public officials and employees. This project has therefore caused a long-lasting effect to the community it covers. In-depth interviews with heads of offices, officials previously reported of vehicle misuse, and ordinary citizens reveal that they have developed within themselves an ethical standard of refraining from the use of red-plated vehicles beyond official purposes. When the culture of “utang na loob” supposedly comes in, the project has caused them to be able to refuse requests for vehicle use from friends, relatives and political allies. 3. CSO Empowerment On 2006, there are relatively few CSO’s involved in the affairs of the local government. Although a number of NGO’s including ECOLINK exist and operate within the city, not one has actually been sitting in mandatory local special bodies of the City Government. Although a Federation of NGO’s has already been existing since 1996, the level of engagement these institutions pursue with the LGU is very minimal and almost confined to coordination in projects. This project since its inception has created a ripple effect to the civil society in transforming PO’s and NGO’s into indispensable key players of local development regardless of main institutional thrusts and mandates. On 2006, a total of 11 NGO’s including the ECOLINK has applied accreditation with the LGU of Oroquieta. This number has increase rapidly as of September 2007 with a total figure of 41. Also,

the following are some of the local special bodies that have opened their doors to CSO representation:

• People’s Law Enforcement Board • Bids and Awards Committee • Projects Monitoring Committee • Local Development Council • City Fisheries & Aquatic Resources Mngt. Council • Local School Board • Solid Waste Management Council • CCTAG • HIV/AIDS Council

On 2005, the City Government has only appropriated P 15,000.00 as annual aid to NGO’s and PO’s. On 2006 and 2007, more than 250,000 pesos from the City Development Fund has been allocated for projects of NGO’s and PO’s. The Oroquieta City Coalition against Corruption and the ECOLINK have representatives in Bids and Awards Committees of the City government, Barangay LGU’s and local offices of national line agencies, thereby providing us the opportunity to witness first-hand procurement processes in the said government bodies. The Projects Monitoring Committee (PMC), a local administrative body of the City Government, is a powerful and very important one in terms of access to and involvement in the implementation of all programs and projects of the City be they infrastructure, trainings, livelihood, among others. Members of this committee include the CPDO, Heads of Offices and NGO’s. Of all, an OCCAC figure heads this committee. ECOLINK Executive Director Paul Pastrano Gangoso holds a key part in the PMC. Combined with ECOLINK’s Media and Democratization Program, the local media community of Misamis Occidental has attained an inspiring light of pursuing programs like the “Bantay Kurapsyon” which provides sharp, provocative and heated discussion of issues concerning corruption in the bureaucracy as well as other concerns involving the welfare of the general public. Many broadcasters are now trying to pursue the form and content of the “Bantay Kurapsyon” in their respective on-air shows. 4. Addressing Other Specific Corruption Issues The levels of impacts these project bring are not confined to government-owned vehicles and their use, procurement and maintenance. With the increasing popularity of the project, the institution, and the “Bantay Kurapsyon”, many issues have been and will be addressed. To name a few, these are: 4.1. Specific Vehicle–related cases

• Use of LGU Vehicle of Barangay Malindang in transporting farm goods • Collection of passenger fee of LGU Vehicle of Barangay Victoria • Use of LGU Vehicle of Barangay Layawan by a Minor Resident and

Relative of the Punong Barangay • Misuse of City Government Vehicle Issued to Councilor Famacion • Unofficial Use of Garbage Compactor in transporting logs • Reselling of Gasoline Allocations • Removal of Motorcycle Plate Numbers • 63 total reports immediately acted by the concerned offices

4.2. Corrupt Practices of School Principal

Mrs. Antonia Regale, Acting School Principal of Rizal National High Schol, has been reported of physical and financial abuses. ECOLINK facilitated the case and she was already relieved from her duty and was replaced by a new Principal. 4.3 Delayed Salary of Bunotex Employees Bunotex employees numbering 200 complain through “Bantay Kurapsyon” that they have not received their salary due for six months already. ECOLINK initiated consultation between concerned parties and the employees received their salary 1 week after the complaint. The employer also thank the ECOLINK for its constructive approach in solving the problem. The Bunotex is a government-run facility. 4.4. “Kotong Cops” “Kotong” or bribe money is often associated with cops in the Philippines. A few months ago, traders complain of these corrupt practices of identified cops. “Bantay Kurapsyon” discussed the issue on air and forwarded the complaint to the Chief of Police through the Council of Elders. The “kotong” practice has since then stopped. 4.5. “Commission Every Audit” The COA, the auditing body of the Philippine government, shows the reason why it is one of the most corrupt agencies in the country when it collects 1,000.00 pesos from each of the 47 barangays every annual audit. These amounts they collect from the Barangay LGU’s are “charged to materials” and they often threaten Barangay officials to disallow the latter’s cash gifts at the end of the year. “Bantay Kurapsyon” tackled the issue for two succeeding weeks and after a heated and controversial public debate, the COA take a step back.

4.6. “BSSP Coop” The issue of massive corruption in the Barangay Self-Sufficiency Program Cooperative, a cooperative run by the Association of Barangay Councils, has been exposed into the public by the “Bantay Kurapsyon”. ECOLINK reveals that almost 500,000 pesos of goods and cold cash have been pocketed by Barangay officials managing the cooperative. ECOLINK’s investigation also found out that 211 city hall employees an officials have unpaid and almost forgotten debts to the cooperative totaling almost 400,000 pesos. These debts are acquired almost a decade ago. An investigation from concerned bodies is now going on. 4.7. “Waiting Shed Syndrome” The Sangguniang Kabataan is a government body composed of elected youth representatives of the community. They receive mandatory budget allocations form the national government and LGU’s. ECOLINK has revealed through the “Bantay Kurapsyon” that 46 out of the 47 barangays of Oroquieta have non-functional SK’s yet their funds have continuously been utilized for several projects. Corruption is rampant as shown in the “Waiting shed syndrome” where each Barangay constructs waiting sheds at a cost of 40,000- 75,000 pesos each. Kickbacks from the construction of these mini-structures amount to 20,000- 35 thousand each. There are a total of 49 waiting sheds constructed in Oroquieta City alone with an estimated total cost of 2,940,000 pesos sourced out of SK funds. With an average corruption rate of 33%, 970, 200 pesos is pocketed by SK and Barangay Officials involved in this projects. And all of these waiting sheds are not utilized for the purpose it is designed for. Most of these are constructed in front of the houses of SK Officials and some even convert these structures into sari-sari stores. With ECOLINK’s revelation, the DILG is now strictly monitoring SK projects and discouraging the construction of additional waiting sheds. 4.8. Other Issues Many other issues of corruption as well as public concerns have been opened for public discussion and resolution by the project. These include corrupt practices in the PACAP projects, abusive officials and irregularities in hiring of city hall personnel. It is also noteworthy cite that there is not one red-plated vehicle used during the May elections as administration politicians respect the project and the ethics the project hopes to pursue. And as long as activities like the “Bantay Kurapsyon” Radio Program continues, the project will be able to address a lot more corruption issues in the locality.

IV.OVERALL ASSESSMENT AND RECOMMENDATIONS A. Overall Assessment All in all, the project has achieved the targets as defined during the development period and is considered successful. (See Appendix 8). The initiative has articulated well and achieved its goal ad objectives. It has extensive increased citizen participation to a quantitative and qualitative degree more than it has originally looked forward to. It has effectively reduced gasoline expenditures of the City Government of Oroquieta including local offices of national line agencies and Barangay LGU more than its targeted amount at appraisal stage. It has totally eradicated gasoline reselling and totally reduced vehicle misuse of government officials and employees. The project has also effectively caused the City Government to undertake steps in complying with procurement laws especially on the aspects of CSO representation in bidding processes, posting and publication of bidding documents, and accessibility of documents. The advocacy components have empowered the citizenry to speak and expose corrupt practices in their respective communities and experiences. It has also reinforced existing campaigns of government agencies like the Office of the Ombudsman. It has also triggered the formulation of policy reforms responsive to issues covered by the project. In addition to, it has been able to address several specific corruption issues and public concerns other than involving government vehicles. It has raised the commitment and sense of ownership among people’s organizations, youth organizations, non-governmental organizations and concerned individuals to the cause of curbing corruption at all levels of the bureaucracy. B. Problems Encountered The major problem encountered during the course of the 1st month project implementation was the long delay of the holding of the Launching Ceremony. Regrettably, the City mayor himself was not able to attend the MOU Signing. According to recommendations from legal experts, the Memorandum of Agreement was transformed into a Memorandum of Understanding since the project do not require financial and legal obligation to the part of the City Government. In addition to, the MOU had has to be translated into a multi-party agreement involving the DILG, ECOLINK, City Government, and others. Individuals at the City Mayor’s Office are very furious of the project since hey are some of the first caught in actual misuse of vehicles. This came to a point when the City Mayor wrote a disturbing letter to the Asian Development Bank asking to stop the project citing reasons like duplicity with their TAG Project, etc. By July

however, the city’s TAG Project has tapped ECOLINK to give them insights of this project that may be able to replicate. Everything has been resolved anyway. As the increasing number of reports each day shows a positive impact of the ACT project, most especially the “Bantay Kurapsyon” Radio Program, the regular work plans of ECOLINK personnel were diverted to acting on such reports. Mr Rolando Neri, the City Local Government Operations Officer of the DILG was replaced by Mr.Porferio Chiong. In relation to the “Bantay Kurapsyon” Radio Program, furious reactions were received from 2 affected city personnel (caught and reported of actual misuse of vehicles). From March 1 until May 31, 2007, the ECOLINK has encountered but three problems related to the project. The delay of grant funds from PTF is the most important of all which has caused some adjustments to the projects on March. It was not until April 5, 2007 that the funds entered our account. Because the short-play contest was scheduled on March 26, the ECOLINK utilized its own funds for the activities. Starting June 2007, the Project Management Staff has not encountered any significant problem at all.

C. Lessons Learned

The project is a very timely response to an already provocative issue of massive corruption in the Philippine bureaucracy. It shows, among other that anti-corruption initiatives require utmost commitment, leadership and patience as shown by ECOLINK in the pursuit of the project’s targeted objectives. Delays at start-up activities are common to all development projects yet initiative has to be taken to reduce these. It is also important for every NGO who will pursue similar initiatives to ensure that the institution including its staff and project personnel stand neutral between partisan blocs during election periods. This project shows how a good project can be vulnerable to become scapegoats in political bickering among political parties and personalities. The measures undertaken by ECOLINK are very good at ensuring balance of support from all opposing camps within government bodies during this very volatile period of Philippine history. D. Recommendations 1. Pursue precedent cases at the Office of the Ombudsman It is highly recommended that the ECOLINK through the OCCAC will file and pursue corruption complaints at the Office of the Ombudsman Mindanao. The cases will be a precedent to all local government officials and employees to strictly observe proper usage of government-issued vehicles and compliance to procurement laws. 2. Strengthen local transparency network

It is important to pursue efforts to strengthen the institutional capacities of local transparency networks like the Oroquieta City Coalition Against Corruption as they will act as trusted foundations of the citizenry in the fight against corruption. This will maintain the momentum gained from the project in the past months. 3. Replicate and expand vehicle monitoring scope Using the intervention model of this project, government vehicle monitoring should be pursued in a wider scope and coverage. NGO’s in other cities may facilitate and support these horizontal project replication activities. These engagements will use the same approaches of this project taking into consideration the lessons learned. In this respect, the ECOLINK may develop a project of similar concept with a bigger scope with PTF’s support. 4. Develop researches on the extent of corruption in the local government Developing and undertaking researches on the extent of corruption in the local government can help identify and pursue major policy and administrative reforms in the country. The extent of corruption in the Philippines as readily available data presents may even be worst than it seems.

Appendix 1: Government Vehicle Monitoring Intervention Model

Appendix 2: Project Logical Framework OBJECTIVES INPUTS INDICATORS MEANS OF

VERIFICATION GOAL: SIGNIFICANTLY REDUCE AND PREVENT THE WASTAGE/CORRUPTION OF LOCAL GOVERNMENT FUNDS THROUGH AN ANTI-CORRUPTION AND TRANSPARENCY INITIATIVE

OBJECTIVE 1: After 6 months, reduce corrupt/ lavish expenditures of the Local Government of Oroquieta on vehicle procurement, use and maintenance by at least 20%.

Monitor LGU Expenditures through Quarterly Expenditure Analysis Workshops Monitor Actual Vehicle Misuse Establish a Feedback mechanism within the LGU IEC/ Advocacy

Budgetary Data collated, integrated and analyzed with the following specific indicators: 1) Amount of LGU expenses in excess of allocation 2) Amount of LGU funds used to private consumptions of oil, gasoline & repairs

Actual Vehicle Misuse Records At least 50 Reports/ Complaints acted by the LGU Specific measures adopted by the LGU to prevent gasoline diversions/ theft and vehicle misuse

Testimonies of LGU Officials/ Workshop Accomplishment Report

Photos/ SMS/ Phone Reports

Comparative Budgetary Data Policies adopted and implemented

OBJECTIVE 2: After 6 months, strengthen the LGU’s compliance to GPRA .

IEC/ Information Drive on GPRA (same as below) Monitor LGU’s compliance to GPRA on vehicle procurement B.A.C. (Bids & Awards Committee) Enhancement Training

GPRA Compliance of LGU on Vehicles based on the following specific indicators: 1) Posting/ ads 2) accessibility of docs. 3) Presence of 3rd-party observer throughout the whole process 1 BAC GPRA Compliance Training Conducted including 1 Benchmarking New policies recommended

M&E Reports Copies of legislations/ policies enacted GPRA Compliance Assessment Workshop Proceedings

OBJECTIVE 3: After 6 months, significantly increase citizen participation on anti-corruption and transparency programs and actions .

Organize anti-corruption Photo-journalism contest Create and Distribute “Conscience Posters” Organize inter-school short-play contest Publish Monthly Newsletter Conduct a weekly 30-minute block time local radio program dubbed “Bantay Kurapsyon” (Corruption Watch) Network Building/ Conference on Corruption in the Local Government Establish a Citizen’s Feedback mechanism within the LGU

• At least 5 campus papers and 2 local newspapers participating in the photo-journalism contest • 300 “conscience posters” distributed and posted in government offices and public places • at least 5 entries in the play contest with at least 200 audience • I monthly newsletter in 100 copies published and distributed/month • At least 100 calls/ text messages from radio listeners reporting improper use of public vehicles • anti-corruption conference held/ at least 10 participating CSO’s, PO’s, NGO’s and private institutions in the network/ conference • Feedback mechanism established

M&E Report Pictorials Copies of articles published and posters printed Radio-recordings/ Photo –documentations Contest results/ reports Conference proceedings/ attendance/ pictorials/ documentation Accomplishment Report

Appendix 3: Sample of Approved Barangay LGU Ordinance on Vehicle Use

Republic of the Philippines OFFICE OF THE SANGGUNIANG PAMBARANGAY

Barangay Upper Rizal, Oroquieta City

EXCERPT FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG BARANGAY OF UPPER RIZAL HELD ON JUNE 26,2007 AT 3:00 PM. PRESENT: Punong Barangay Lolita Pastrano , presiding Kagawad Segundino Balaba Kagawad Luz T. Manlawe Kagawad Erlinda M. Mequiabas Kagawad Roberto B. Clavite Kagawad Felipe P. Manlawe Kagawad Pedro Bacus Kagawad Silverio Uba SK Chairman Ruel T. Babanto OTHERS PRESENT: Secretary Arcel Uba Treasurer Elsa Uba ABSENT: None

Brgy. Ordinance No.11 - 2007

PRESCRIBING THE GUIDELINES ON THE USE OF BARANGAY GOVERNMENT VEHICLE, FUEL CONSUMPTION, AND AVAILMENT OF AUTOMOTIVE MAINTENANCE SERVICES

WHEREAS, Section 361, Chapter 4 (Use, Repair and Maintenance of Government Vehicles), Title 6, Book III, Volume I of the Government Accounting and Auditing Manual lays down the rules on the use of government vehicles and fuel consumption;

WHEREAS, it is noted that there has been a high rate of expenditures on fuel consumption of the Barangay Government vehicle;

WHEREAS, the use of vehicle must be properly controlled and regulated, and fuel consumption in relation thereto must be properly monitored;

WHEREFORE, these guidelines on the use of barangay Government vehicle, fuel consumption, and availment of maintenance service are hereby adopted:

Section 1. Coverage. - These guidelines shall apply to the barangay vehicles of the Local Government of Barangay Upper Rizal,

Section 2. Guidelines. - The following guidelines shall be observed in the use of barangay vehicles, as well as fuel consumption and availment of automotive maintenance services:

a. The barangay vehicle shall be used for official purposes only. Unless properly and duly authorized prior to target date of use, the use of said vehicle on Saturdays, Sundays, legal holidays, beyond the regular hours for going to and from the office, or outside the route of the official or employee authorized to use them is strictly prohibited.

b. No vehicle shall be used for purely private social functions or for other personal purposes, or for the spouse, children, relatives, or friends of the official entitled thereto.

c. The vehicle must be kept in the Barangay Hall’s compound except when in use for strictly official purposes or unless the security in the vicinity is lax.

d. Non- resident of the Barangay shall not be allowed to use the vehicle except otherwise covered by a written agreement between him and the Sangguniang Pambarangay through the Punong Barangay. Provided, however, that the use of such vehicle is for purposes specified in Paragraph b Section 2 above.

e. Requests to use the barangay vehicle by elected and appointed officials of the Barangay shall be made personally by the individual. The request shall be accomplished in the prescribed form as may be promulgated by the Sangguniang Pambarangay, stating therein the purpose of such travel.

e.1 The request shall be forwarded to the Punong Barangay. The Punong Barangay shall order the assigned driver to fill up properly all required information indicated in proper space of said form, such as the quantity of fuel to be purchased before travel and the quantity which was consumed after the use of said vehicle.

e.2 The Secretary of the Barangay shall duly note in the said form the fuel issued, purchased or consumed and the balance of fuel in the tank at the end of the trip.

f. Requisitions for gasoline for the use of barangay vehicle shall be accomplished through a resolution from the Sangunniang Pambarangay and approved by the Punong Barangay. The Barangay Treasurer shall carry out the necessary steps to proceed with the acquisition subject to existing rules and availability of budget. No requisition for gasoline or diesel shall be dispensed and paid by the Barangay unless there has been a prior approval.

g. Only elected or appointed individuals including the Punong Barangay is allowed to drive the vehicle irregardless of purpose and destination. A driver

should possess valid driver’s license and not influenced by liquor on actual usage of vehicle.

h. Any resident of Upper Rizal, neither an elected nor appointed official of the barangay, who wish to use the vehicle on conditions as specified in the ordinance, shall shoulder all gasoline expenses incurred in the use of the vehicle.

i. Electrical, mechanical and other related services necessary to maintain the roadworthiness of the vehicle, except those under warranty, should be done only by the duly accredited service station, subject to the required pre-repair inspection report duly approved by the Barangay.

j. Effective 1 October 2007, the authorized gasoline and service station of Barangay Upper Rizal shall be GF Petron, Poblacion 2, Oroquieta City.

k. The Barangay Treasurer shall submit a monthly report of fuel consumption of the vehicle to the Commission on Audit, copy furnished to the Sangguniang Pambarangay. The Secretary shall maintain a file of all the requests for the use of barangay vehicle and reports on fuel consumption and availment of automotive maintenance services.

Section 3. Applicability of the General Accounting and Auditing Manual. - Whenever applicable, the provisions of the General Accounting and Auditing Manual shall govern.

Section 4. Effectivity. - These guidelines shall take effect on the 1st day of October 2007.

Approved: June 26 2007

CERTIFIED TRUE AND CORRECT UPON DELIBERATION: (Sgd)

LOLITA PASTRANO Punong Barangay, Presiding

ATTESTED: (Sgd)

ARCEL UBA Secretary

Appendix 4: Indicative Output Assessment

Output Indicators Target Actual Project Completion

Budgetary Data Estimates

1) Amount of LGU expenses in excess of allocation

2) Amount of LGU funds used to private consumptions of oil, gasoline & repairs

(Before project implementation)

P 1,692,081.12

P 338,416.22

- P 311,572.27

P 6,231.44

Actual Vehicle Misuse Records 50 288 Reports Acted by the Government 50 63

Policies adopted and implemented 5 13 GPRA Compliance

1) Posting/ ads 2) accessibility of docs 3) Presence of 3rd-party observer throughout the whole process

Minimal

Minimal

None

Significant

Minimal

Significant

BAC GPRA Compliance Training 1 1 Photo-journalism contest participants 8 19 “Conscience Posters” 300 360 Inter-school short-play contest 1. Entries 2. Participants

5

200

5

590 Monthly Newsletter 400 600 “Bantay Kurapsyon” (Corruption Watch) Radio Program 1. Weekly Programs 2. Calls/ text messages/ letters

24

100

40

1431 Anti-Corruption Conference 1. CSO’s/ NGO’s 2. Participants

10

50

27

78 Total Expenses P 1,082,850.00 P 1,077,639.25

Appendix 5: Draft City LGU Ordinance on Vehicle Use and Maintenance

Republic of the Philippines

Sangguniang Panlungsod Oroquieta City

Region 10

RESOLUTION NO. ___-2007

ADOPTING CITY ORDINANCE NO. __-007 DEFINING THE GUIDELINES ON THE USE OF LOCAL GOVERNMENT VEHICLES, FUEL CONSUMPTION AND

AVIALMENT OF AUTOMOTIVE SERVICES

WHEREAS, Section 361, Chapter 4 (Use, Repair and Maintenance of Government Vehicles), Title 6, Book III, Volume I of the Government Accounting and Auditing Manual lays down the rules on the use of government vehicles and fuel consumption;

WHEREAS, it is noted that there has been a high rate of expenditures on fuel consumption of City Government vehicles in the past three years;

WHEREAS, it is noted that there has been several reports of documented misuse of vehicles by City government employees and officials by non-governmental organizations;

WHEREAS, the use of City Government vehicles must be properly controlled and regulated, and fuel consumption in relation thereto must be properly monitored;

WHEREFORE, this Ordinance setting the guidelines on the use of City Government vehicles, fuel consumption, and availment of maintenance service is hereby adopted:

ORDINANCE NO. 00-2007

GUIDELINES ON THE USE OF LOCAL GOVERNMENT VEHICLES, FUEL

CONSUMPTION AND AVIALMENT OF AUTOMOTIVE SERVICES Be it enacted by the Sangguniang Panlungsod, in session assembled, that:

Section 1. Definition of Terms.

A. Government Vehicle. Any motor vehicle, boat or other similar means of transportation that is owned or leased by the City Government of Oroquieta including those that have been purchased or maintained by the LGU.

B. Residence. The primary place where an employee resides and from which the employee commutes to his/her place of employment.

C. Place of Employment. Any place within the accepted commuting area where an employee performs his/her business, trade, or occupation even if the employee is there only for a short period of time. The term includes, but is not limited to, an official duty station, home base, headquarters, or any place where an employee is assigned to work including locations where meetings, conferences, or other official functions take place.

D. Field Work. Official work performed by an employee whose job requires the employee's presence at various locations that are at a distance from the employee's place of employment or at a remote location that is accessible only by Government-provided transportation. The designation of a work site as a field office does not, of itself, permit the use of a Government vehicle for home-to-work transportation. Examples of employees involved in field work include, but are not limited to, health inspectors, and certain law enforcement officers, whose jobs require travel to several locations during the course of the work day.

E. Emergency. Circumstances which exist whenever there is an immediate, unforeseeable, temporary need to provide home-to-work transportation for those employees who are necessary to the uninterrupted performance of the agency's mission. An emergency may occur where there is a major disruption of available means of transportation to or from a work site, and essential Government service must be provided, and there is no other way to transport an employee.

F. Private parties. Any individual, group or organization not connected through employment or appointment with the City Government of Oroquieta and its subordinate agencies.

Section 2. Coverage. - These guidelines shall apply to all vehicles of the City Government of Oroquieta, including those of the barangays and national line agencies subsidized and acquired through City Government funds, except the vehicle assigned to the City Mayor and the City Vice- Mayor.

Section 3. Guidelines. - The following guidelines shall be observed in the use of government vehicles, as well as fuel consumption and availment of automotive maintenance services:

A. All Local government vehicles shall be used for official purposes only. Unless properly and duly authorized prior to target date of use, the use of said vehicles on Saturdays, Sundays, legal holidays, beyond the regular hours for going to and from the office, or outside the route of the officials or employees authorized to use them is strictly prohibited. All home-to-work vehicles shall be deposited at the City Hall Compound by 5:00 pm every Friday.

B. No Local Government vehicle shall be used for purely private social functions or for other personal purposes, or for the spouse, children, relatives, or friends of the official entitled thereto. The prohibited acts include dropping- off and fetching children and family members in schools, family recreations, among others. All government vehicles are likewise prohibited to be brought and parked in motels, club houses, beach resorts

during and beyond office hours except when an official business transaction or meeting is taking place in such places on official time.

C. All Local Government vehicles not assigned for home –to-work transportation must be kept in the City Hall’s compound after official office hours except when in use for strictly official purposes as may be authorized by the City Mayor subject to other provisions of this Ordinance.

D. The use of Government vehicles between an employee's residence and his/her place of employment shall be limited to Heads of Offices; Administrative Officials; Employees engaged in actual field work and law enforcement service duties when the use is essential for the safe and effective performance of those duties; and other employees, when use is in response to an emergency situation.

E. No casual employee shall be allowed to bring office vehicles to their homes after regular daily office hours.

F. Requests to use Local Government vehicles not assigned to officials of the Local Government shall be made by the Head of Office or his authorized representative. The request shall be accomplished in a prescribed form as may be promulgated by the Office of the General Services, stating therein the purpose of such travel.

f.1 The request shall be forwarded to the General Services Office. The Head of Office of the General Services Office (GSO) shall order the driver of the requested vehicle to fill up properly all required information in a prescribed form, such as the quantity of fuel to be purchased before travel and the quantity which was consumed after the use of said vehicle. A travel outside the City on official time requires a travel order and approval by the Local Chief Executive.

f.2 The Head of the GSO or duly designated personnel shall duly note in the said form the fuel issued, purchased or consumed and the balance of fuel in the tank at the end of the trip.

G. Requests to use any City Government vehicle by private parties shall require prior approval by the City Mayor.

g1. An individual requesting to use any vehicle of the City Government must be a permanent resident of the City of Oroquieta.

g2. Groups or institutions requesting to use any vehicle of the City Government must be a non-governmental organization or people’s organization duly accredited by the City Government prior to the date of request.

g3. All private individuals, groups or institutions requesting to use City Government vehicles must shoulder all gasoline and other expenses including per diem of driver as well as damages resulting from the actual use of the individual, group or organization beyond proper standards.

g4. The use of such vehicles must not fall along the activities specified in Paragraph B of this Section.

H. Requisitions for gasoline and diesel fuel for the use of any Local Government vehicle shall be duly accomplished by the concerned Head of Office. The Office of the General Services shall keep records of all gasoline and diesel fuel requisitions. No requisition for gasoline or diesel shall be dispensed and paid by the City Government unless there has been a prior approval.

In the case of officials and employees assigned with official home-to-work vehicles, a corresponding prepaid card will be issued for the purpose. The monthly maximum allowable quantity of fuel to be purchased by the City Government of Oroquieta for the said officials shall be equivalent to the amount of their monthly transportation allowance, which will be given in the form of prepaid cards. These cards will be distributed effective 1 January 2008. Any unused or unspent portion of the prepaid card shall be carried over to the succeeding month. In the event that the amount of the prepaid card has been consumed before the end of the month, all gasoline purchases will be charged against the account of the official concerned.

I. Gasoline expenses for official travels outside of Oroquieta City may be reimbursed if the same is covered by a prior authority to travel approved by the City Mayor.

J. Electrical, mechanical and other related automotive services necessary to maintain the roadworthiness of City Government vehicles, except those under warranty, should be done only by the duly accredited service station, subject to the required pre-repair inspection report duly approved by the City Mayor.

K. Effective 1 January 2008, the authorized gasoline and service station of the City Government shall be GF Petron, Poblacion 2, Oroquieta City.

L. The Head of the GSO shall submit a monthly report of fuel consumption of all City Government vehicles to the Commission on Audit, copy furnished the Office of the City Mayor, City Administrator, and the Head of the Accounting and Budget Offices. A copy of this report shall be readily made available to public access. The GSO shall maintain a file of all the requests for the use of City Government vehicles and reports on fuel consumption and availment of automatic maintenance services.

Section 4. Applicability of the General Accounting and Auditing Manual. - Whenever applicable, the provisions of the General Accounting and Auditing Manual shall govern.

Section 5. Complaints of Abuse of Privileges. Any resident of the City who has prior information or knowledge of any form of abuse of vehicle privileges involving City government officials and employees as specified in this Ordinance or any other applicable law may file a complaint at City Mayor’s Office, which the latter shall act immediately upon. He/she may also pursue such actions at other appropriate government bodies.

Section 6. Penalties. Any government employee or official violating any of the provisions of this ordinance shall be fined the amount of One Thousand Pesos (P1000.00) and shall be recommended for appropriate administrative sanctions. Home-to-work transportation privileges of such erring employee or official shall be suspended for at least three months.

Section 7. Implementing Office. - The GSO must ensure compliance with these Guidelines and other pertinent rules on the use of government vehicles and fuel consumption. It shall promulgate the necessary implementing regulations and prescribed forms consistent with this Ordinance. Law enforcement bodies are likewise directed to apprehend and report anyone who violates the provisions of this Ordiance.

Section 5. Effectivity. - These guidelines shall take effect on the 1st day of January 2008.

Approved: October ___, 2007

CERTIFIED CORRECT: HENRY J. FAMAS, MD City Vice- Mayor Sangguniang Panlungsod Presiding Officer ATTESTED: CONCEPCION N. MAISLING Secretary to the Sanggunian APPROVED: ATTY. JORGE T. ALMONTE City Mayor

Appendix 6: Selected Photo Documentations

City Mayor's Office Sangguniang Panlungsod

City Planning & Development Office General Services Office

City Accountant's Office City Treasurer's Office

City Assessor's Office City Prosecutor's Office

Phil. National Police CLGOO- Dept. of the Interior and Local Govt.

City Health Office City Social Welfare & Development Office

City Agriculture Office City Engineer's Office

Market Operations Department of Education- City Division

City Mayor's Office Sangguniang PanlungsodCity Planning & Development Office General Services OfficeCity Accountant's Office City Treasurer's OfficeCity Assessor's Office City Prosecutor's Office

Phil. National Police CLGOO- Dept. of the Interior and Local Govt.City Health Office City Social Welfare & Development OfficeCity Agriculture Office City Engineer's OfficeMarket Operations Department of Education- City Division

Appendix 7: LGU Expenditure Data (Project Period)

Approp june 2006

Expenses June 2006

Approp June 2007

Expense June 2007

378,988.80 592,170.00 390,832.20 351,748.98 128,718.08 201,122.00 132,740.52 119,466.47 1,872.00 2,925.00 1,930.50 1,737.45 17,952.00 28,050.00 18,513.00 16,661.70 52,480.00 82,000.00 54,120.00 48,708.00 77,808.00 121,575.00 80,239.50 72,215.55 8,064.00 12,600.00 8,316.00 7,484.40 26,464.00 41,350.00 27,291.00 24,561.90 88,000.00 137,500.00 90,750.00 81,675.00 12,160.00 19,000.00 12,540.00 11,286.00 79,520.00 124,250.00 82,005.00 73,804.50

4,800.00 7,500.00 4,950.00 4,455.00 406,656.00 635,400.00 419,364.00 377,427.60 1,714,880.00 2,679,500.00 1,768,470.00 1,591,623.00 3,200.00 5,000.00 3,300.00 2,970.00 27,148.00 30,850.00 20,361.00 18,324.90 3,028,710.88 4,720,792.00 3,115,722.72 2,804,150.45

OFFICE APPROPRIATIONS INCLUDING SUPPLEMENTAL PROGRAM ACTUAL EXPENDITURES BALANCES City Mayor's Office 1,184,340.00 1,146,807.00 37,533.00 Sangguniang Panlungsod 402,244.00 390,084.24 12,159.76 City Planning & Development Office 5,850.00 3,797.36 2,052.64 General Services Office 56,100.00 55,499.77 600.23 City Accountant's Office 164,000.00 163,034.86 965.14 City Treasurer's Office 243,150.00 234,602.86 8,547.14 City Assessor's Office 25,200.00 24,980.96 219.04 City Prosecutor's Office 82,700.00 64,504.34 18,195.66 Phil. National Police 275,000.00 237,121.81 37,878.19 CLGOO- Dept. of the Interior and Local Govt. 38,000.00 22,425.15 15,574.85 City Health Office 248,500.00 248,274.39 225.61 City Social Welfare & Development Office 15,000.00 2,972.42 12,027.58 City Agriculture Office 1,270,800.00 1,218,385.29 52,414.71 City Engineer's Office 5,359,000.00 5,358,653.80 346.20 Market Operations 10,000.00 7,014.00 2,986.00 Department of Education- City Division 61,700.00 61,669.82 30.18 TOTAL 9,441,584.00 9,239,828.07 201,755.93

Appropriations Expenditures

Appendix 8: Case Study: A Councilor’s Ecstasy Plate Number: SBE 219 Make (Model): KIA (1991) Description: Four-wheel, pick-up utility type, 4-seater comfort with stereo & good condition tires Office Assignment: Peace and Order Council (Office of the City Mayor) Person Assigned: Mr. Roberto Famacion, City Councilor First Study Period: January 8- 14, 2007 Findings: It is pretty obvious that Mr. Roberto Famacion has abused his position as an elected City Councilor by using the vehicle 24 hours a day at 7 days a week. He uses the vehicle in transporting farm inputs and water to his farm at Purok 2, Mobod, Oroquieta City every morning. His farm is about 6 kilometers from his residence at Poblacion II, Oroquieta City. His vehicle is seen operating even on weekends, used in going to church, family gatherings, and going to market. In monetary terms, an average of 141.29 pesos is wasted everyday on excess gasoline consumption. In his three years term of office, he owes the People of Oroquieta City a total of 154,707.86 pesos corrupted through the expenditure of his gasoline for his personal use. Surely, a councilor’s life is an ecstasy for this man.

Day Max Hours of

Allowable Operation

(Hours) I

Total Hours of Actual

Operation (Hours)

II

Excess Hours of

Operation (Hours)

III

Ave. Distance Travel (Kms/

1 Hour)

IV

Regular Max. Distance

Travel (Kms/Day)

V

Excess Distance

Travel (Kms/Day)

VI

Gasoline Efficiency

(5Kms/ 1 Liter)

VII

Ave. Price of Gasoline

(P43/ Liter)

VIII

Regular Cost of Operation

(Pesos)

IX

Cost of Corruption (Pesos)

X

8 Monitoring (II) – (I) 5 Kms/ Hour (I) x (IV) (III) x (IV) 5 Kms/ 1 Liter P43 (V) / (VII) x VIII (VI) / (VII) x VIII M 8 12 4 5 40 20 5 43 344.00 172.00 T 8 11 3 5 40 15 5 43 344.00 129.00 W 8 5 5 40 0 5 43 344.00 0.00 T 8 6 5 40 0 5 43 344.00 0.00 F 8 9 1 5 40 5 5 43 344.00 43.00 S 0 7 7 5 0 35 5 43 0.00 301.00 S 0 8 8 5 0 40 5 43 0.00 344.00

Total 40 58 23 35 200 115 1720.00 989.00

Second Study Period: August 6-12, 2007 Findings:

Day Max Hours of

Allowable Operation

(Hours) I

Total Hours of Actual

Operation (Hours)

II

Excess Hours of

Operation (Hours)

III

Ave. Distance Travel (Kms/

1 Hour)

IV

Regular Max. Distance

Travel (Kms/Day)

V

Excess Distance

Travel (Kms/Day)

VI

Gasoline Efficiency

(5Kms/ 1 Liter)

VII

Ave. Price of Gasoline

(P43/ Liter)

VIII

Regular Cost of Operation

(Pesos)

IX

Cost of Corruption (Pesos)

X

8 Monitoring (II) – (I) 5 Kms/ Hour (I) x (IV) (III) x (IV) 5 Kms/ 1 Liter P43 (V) / (VII) x VIII (VI) / (VII) x VIII M 8 3 -5 5 40 -25 5 43 344.00 -215.00 T 8 2 -6 5 40 -30 5 43 344.00 -258.00 W 8 3 -5 5 40 -25 5 43 344.00 -215.00 T 8 4 -4 5 40 -20 5 43 344.00 -172.00 F 8 1 -7 5 40 -35 5 43 344.00 -301.00 S 0 0 0 5 0 0 5 43 0.00 0.00 S 0 0 0 5 0 0 5 43 0.00 0.00

Total 40 13 -27 35 200 -135 1720.00 -1161.00 On the period of August 6-12, 2007, another study of the same vehicle revealed that average operation per day is only 1.86 hours giving the City of Oroquieta a savings of 1,161.00 pesos every week. This happens as the vehicle has already been transferred assignment form Mr. Roberto Famacion to the City Vice- Mayor’s Office.  On the way to the farm on a Sunday...             At the Market…                  At Home… 

Appendix 9: Final Audit Report

EXTERNAL AUDIT REPORT OF THE ANTI-CORRUPTION AND TRANSPARENCY PROJECT OF

ECOLINK The Partnership for Transparency Fund Dear Sirs/ Mesdames: I am glad to submit the audit report on the balance sheets of the Anti Corruption and Transparency Project of the ECOLINK as of March 1, 2007 and the related statements of expenses from December 2006 up to February 2007. These statements are the responsibility of the ECOLINK. Our responsibility is to express an opinion on these financial statements based on our audit. The audit has been conducted in accordance to generally-accepted auditing standards in the Philippines. These standards require that we plan and perform the audit to obtain reasonable assurance that the statements are free of material misstatements. The audit also includes assessing the financial system used by the ECOLINK. I believe that the audit shows reasonable basis for my opinions. In my opinion, the statements referred to above present fairly, in all respects, the financial operations of the Anti-Corruption and Transparency project as of July 2007 and the cash flows are following generally-accepted accounting principles. Manuel Sy Ratunil, CPA Board Certificate No. 20176 PTR No. 1755985-0207 TIN No. 155-464551 Oroquieta City July 15, 2007

Final Audit- ECOLINK

FINANCIAL OPERATION As of Project End July 2007

Receipts: Total ECOLINK Equity from General Fund P 290,000.00 Total PTF/WB/ADB Grants Received 719,517.30 Total Grants Receivable from PTF 73,100.00 Other Sources (Donations, Fund Raising, etc.) 66,000.00Total Funds Received: 1,148,617.3 Less: Expenditures December- February 481, 401.00 March-May 333,111.00 June- July 190,049.95 Total Liquidated Expenses: P 1,004,561.95Total Unliquidated Expenses: 0.00Total Liabilities: (Aug-Oct) 73,077.30 Balance of ECOLINK Equity from General Fund 4,978.05 Balance of ACT- PTF/WB/ADB Grant (1st Tranch) 0.00 Balance of Funds from other Sources 66,000.00 Total Liabilities and Fund Balances: P 144,055.35 Total: P 1,148,617.3

Final Audit- ECOLINK

Final Audit- ECOLINK

STATEMENT OF EXPENDITURES March 2007

Office Supplies:

ITEMS AMOUNT O.R. # Acetate 40.00 00864

Newsprint 5.00 00864 Bond paper 35.00 01222 Floor mat 156.00 09115

Triton Latex 90.00 27733 Brite wax 42.00 27733

Office Supply 114.00 01241 Folder Long 15.00 10887

Ring Bind Holder 13.00 10887 Triton Latex 90.00 27194

F.4 185.00 49229 PH 20.00 140937 PH 60.00 140973

FLB 195.00 140973 Ribbon 12.00 0039 Varnish 38.00 205228 Cutter 20.00 10860

Office Supply 2,700.00 01299 Photo Paper 56.00 775827

Plastic Cellophane 14.00 10860 Office Supply 550.00 01301

Illustration board 50.00 00865 P 4,500.00 Transportation:

ITEMS AMOUNT O.R. # Fare 20.00 739049 Fare 20.00 739050

Gasoline 120.00 01105867 Gasoline 66.00 10519 Gasoline 67.00 10666

Fare 1,575.00 Cv Gasoline 120.00 31755 Gasoline 120.00 11498 Gasoline 30.00 16422

Fare to Pagadian City 4,500.00 Cv Fare to Cagayan De Oro City 2,000.00 Cv

Gasoline 40.00 10136 Gasoline 40.00 10176

Fare 140.00 Cv Gasoline 120.00 19928 Gasoline 30.00 10413 Gasoline 40.00 10480 Gasoline 150.00 0111310 Gasoline 260.00 19078

Final Audit- ECOLINK

Gasoline 130.00 15977 Gasoline 150.00 10411 Gasoline 20.17 15425

Fare 120.00 Cv Gasoline 200.00 1086 Gasoline 126.00 100008 Gasoline 30.00 15554

P 10,235.17 Communication:

ITEMS AMOUNT O.R. # Internet 10.00 0194 Internet 40.00 0186 Internet 15.00 0195 Internet 40.00 0191 Internet 20.00 0194

Call and Text card 4,272.00 10012 Internet 25.00 0210 Internet 40.00 0219 Internet 40.00 0231 Internet 60.00 0232 Internet 25.00 0235

Call and Text card 2,245.00 10020 Internet 15.00 0245 Internet 20.00 0251 Internet 45.00 0254

Call and Text card 955.00 10033 Internet 50.00 0257 Internet 45.00 0261 Internet 25.00 0261 Internet 31.00 0261

P 8,118.00 Photojournalism Contest: finals

ITEMS AMOUNT O.R. # Awards 27,000.00 Cv Snacks 4,500.00 1112-A

Streamers 750.00 217 Medals 350.00 1212

Transportation 4,500.00 Cv Preparation Communication 5,000.00 Cv

Sound System 4,500.00 1150-C Venue 3,500.00 1150-C

P 50,100.00 Short-play Competition (booking):

ITEMS AMOUNT O.R. # Venue ABC gym 5,000.00 1150-C

Sound System 4,300.00 1150-C

Final Audit- ECOLINK

Medals 284.00 11007 Streamers 500.00 2192

Snacks 4,000.00 1112-A Awards 37,000.00 cv

Preparation Communication 4,093.00 cv P 55,357.00 TWG Meeting:

ITEMS AMOUNT O.R. # Snacks and meals of pax 2,000.00 1120

P 2,000.00 Others:

ITEMS AMOUNT O.R. # Office Space 5,000.00 n/a

Audit Expenses 5,000.00 10012 Electricity 706.25 0468156

P 10,706.25 Total Expenses: P 140,116.42

STATEMENT OF EXPENDITURES April 2007

Office Supplies:

ITEMS AMOUNT O.R. # Windows XP SP2 100.00 N/a

CD’s 400.00 N/a Office Supply 1,000.00 Cv

13 rolls developed w/printer 1,834.00 2605 13 pcs – 12 shots 910.00 2524

Coupling ½ 5.00 5522 PUC TEE ½ 9.00 5522 Grand Piz. 537.00 5522

Office Supply 95.00 Cv Windows XP SP2 180.00 N/a

Britanira 2007 DVD 180.00 N/a P 5,250.00 Transportation:

ITEMS AMOUNT O.R. # Fare 50.00 030113

Gasoline 40.00 51142 Gasoline 50.00 28166

Fare to Cagayan De Oro City 2,000.00 cv Gasoline 40.00 19794 Gasoline 20.00 19035

Final Audit- ECOLINK

Gasoline 50.00 2046 Gasoline 116 19292 Gasoline 124.50 19984 Gasoline 300.00 35593 Gasoline 50.00 43419

Fare to Cagayan De Oro City 1,350.00 cv Gasoline 104.83 950978 Gasoline 450.00 067787 Gasoline 50.00 064838 Gasoline 300.00 044915

Fare 20.00 075656 Fare 20.00 327129

Fare to Pagadian City 1,600.00 cv Fare 20.00 750240 Fare 3.00 18818392

Gasoline 482.50 19226 Fare 210.00 269077 Fare 210.00 279689

Gasoline 200.00 26100 Fare 20.00 86875

Gasoline 40.00 96578 Gasoline 70.00 254653

Fare to Osamiz City 963.00 cv Gasoline 300.00 36175

Fare 20.00 327130 Gasoline 350.00 254717

Fare 50.00 278304 P 9,673.83 Communications:

ITEMS AMOUNT O.R. # Internet 1000.00 8641

Call Cards 9,982.00 2112 Loads 185.00 49966

P 11,167.00 Meeting with the DILG Regional Director:

ITEMS AMOUNT O.R. # Meals 7,500.00 11210 Snacks 4,500.00 11210

Transportation 3,871.00 cv Accommodation 2,500.00 4450 Communication 1,500.00 cv

P 19,871.00 TWG Meeting:

ITEMS AMOUNT O.R. # Snacks 840.00 01982 Meals 1,925.00 0802106

P 2,765.00

Final Audit- ECOLINK

Others:

ITEMS AMOUNT O.R. # Office Space 5,000.00 n/a Water Bill 1,018.00 165623

Electric Bill 614.04 0488712 P 6,632.04 Total Expenses: P 55,358.87

STATEMENT OF EXPENDITURES May 2007

Office Supplies:

ITEMS AMOUNT O.R. # Corkboard 286.00 13724

Pins, Thumb Tacks 31.50 2659 Office Supply 2,500.00 20111

1 pc. Cutting Pin 178.00 0693 board PS/2 350.00 0395

Office Supply 1,500.00 20126 Office Supply 454.50 20154

P 5,300.00 Transportation:

ITEMS AMOUNT O.R. # Gasoline 50.00 2145

Fare 20.00 795371 Fare 20.00 795370

Gasoline 50.00 37443 Gasoline 30.00 38775

Fare to Pagadian 3,112.00 cv Gasoline 50.00 2869 Gasoline 50.00 12114

Fare to Osamiz City 1,500.00 cv Gasoline 50.00 33957 Gasoline 40.00 37744

Fare to Osamiz City 500.00 cv Gasoline 50.00 2146 Gasoline 50.00 12569 Gasoline 50.00 37545 Gasoline 50.00 38505

Fare to Cagayan De Oro City 3,440.00 cv P 9,112.00

Communications:

ITEMS AMOUNT O.R. # Call and Text Card 2,242.00 10021

Internet 1000.00 1121 Call Card 90.00 9729

Call and Text Card 1,345.00 10111 Network Fee 323.00 33622

P 5,000.00 TWG Meeting:

ITEMS AMOUNT O.R. # Snacks and Meals of pax 3,235.00 0121

P 3,235.00 3rd Expenditures Analysis Workshops:

ITEMS AMOUNT O.R. # Transportation of pax & facilitator 8,500.00 1210-A

Per diem of facilitator 3,000.00 cv Documenter 1,500.00 cv

Food & accom. Of pax 46,500.00 1210-A LCD rental 12,000.00 3106

Workshop kits 20,970.00 cv P 92,470.00 Policy – formulation Workshops:

ITEMS AMOUNT O.R. # LCD rental 7,500.00 3115

Food & accom. Of pax 4,500.00 1222-A Workshop kits 2,300.00 cv Transportation 889.00 cv Documenter 1,200.00 cv

P 16,389.00 Others:

ITEMS AMOUNT O.R. # Electric Bill 619.04 N/A Office Space 5,000.00 N/A Electric Bill 510.67 0484263

P 6,129.71 Total Expenses: P 137,635.71

STATEMENT OF EXPENDITURES June 2007

Office Supplies:

Final Audit- ECOLINK

ITEMS AMOUNT O.R. # 17 pcs. Scan 1,170.00 2217

2 packs silver laid paper 94.00 11884 1 pc. Optimum ink refill 650.00 485

1 pair scissor 35.00 11939 Plywood 229.00 62126

3 pcs. Streamer 1,220.00 1049 1 pc. Plywood 180.00 62306 1 pc. Handle 120.00 17321

Cd windows xp 900.00 14564 1 liter triton maple 98.00 17324

1 bottle thinner 29.50 17324 1 pc. Brush 46.00 17324 Beads small 10.00 36419 Beads pearl 14.00 36419

P 4,795.50 Transportation:

ITEMS AMOUNT O.R. # Gasoline 400.00 28730 Gasoline 300.00 52181 Gasoline 500.00 961136 Gasoline 300.00 52479

Travel to Gen.San. 6,000.00 cv 311 Travel to Pagadian 3,038.00 cv321

Fare 42.00 2154 Fare 18.00 n/a

P 10,598.00 Communication:

ITEMS AMOUNT O.R. # Cable TV network 320.00 34674

Web page 1,110.00 1399-16586 Fax 116.00 6190 Fax 138.00 6191

P 1,684.00 GPRA Compliance Workshops:

ITEMS AMOUNT O.R. # Transportation of Facilitator 5,000.00 cv 342

Transportation of Pax 11,000.00 cv 346 Per Diem of Facilitator 3,000.00 cv 347

Documentor 1,500.00 cv348 Food and Accom of Pax 30,000.00 10010

LCD Rental 12,000.00 10010 Training Kits 9,729.00 cv351

P 81,771.00 TWG Meeting:

Snacks and meals of pax 2,000.00 P 2,000.00 Legislative Consultation:

Final Audit- ECOLINK

ITEMS AMOUNT O.R. # Meals 11,700.00 10012

LCD rental and sound system 3,000.00 10012 Photocopying 238.00 2146

Transportations 462.00 n/a Snacks 2,000.00 10012

P 17,400.00 Total Expenses: P 118,248.50

STATEMENT OF EXPENDITURES July 2007

Office Supplies:

ITEMS AMOUNT O.R. # 1/2 sheet styro 60.00 36496 2 pcs. Cartolina 15.00 36496 2 bottles tulcraft 65.00 36496

2 tubes metallic dust 100.00 36496 1 pc. Glue sticks 3.00 36496 1 pc. Paint brush 15.00 23269

1 rm. A4 bond paper 479.00 37581 1 magazine rack 478.00 3686 5 bottles thinner 380.00 211603 1 pc. Paint brush 23.50 211603

1 varnish 38.50 211603 1 star wax 71.00 43202106

5 rms. Short bond paper 975.00 2145 5 rms. Long bond paper 900.00 2145 5 rms. A4 bond paper 950.00 2145 20 expanded envelop 160.00 2145

1 pc. Optimum ink refill Black 600.00 2145 Linen Paper 97.50 2145

2 whiteboard marker 116.00 2145 Pilot refill 150.00 122014

10 brown envelop 80.00 122014 5 pcs. Ball pen 30.00 980

10 cartolina 70.00 214541 2 pcs. CD R 70.00 214541

35 pcs. Transparent paper 350.00 989 Staple wire 35.00 214588

Cellophane cover 43.00 214588 P 6,354.50 Transportation:

ITEMS AMOUNT O.R. # Fare 23.00 n/a Fare 24.00 322 Fare 74.00 214

Final Audit- ECOLINK

Fare 21.00 n/a Fare 114.00 1240

P 256.00 Communication:

ITEMS AMOUNT O.R. # Fax 280.00 6199

Internet 999.00 197 Print (uaf) 560.00 1173

Call & text cards 2,345.00 542 Call & text cards 3,646.00 638

Load wallet 500.00 9851 Call & text cards 1,483.00 1205

P 9,813.00 Exit Conference:

ITEMS AMOUNT O.R. # Meals and Snacks of Pax 16,808.00 1049

Venue Rental 2,000.00 8033 LCD Rental 2,000.00 1701

Printing of References/ Handouts 6,458.00 2152 Transportation 9,850.00 cv

Accommodation 1,800.00 8033 Preparation Communication 3,542.00 4512/ 33330

P 42,458.00 TWG Meeting:

ITEMS AMOUNT O.R. # Snacks and meals of pax 2,000.00 1121

P 2,000.00 Others:

ITEMS AMOUNT O.R. # Electric bill 919.95 20442710 Office space 5,000.00 CV

P 5,919.95 Audit Expenses:

ITEMS AMOUNT O.R. # Expenses 5,000.00 87577

P 5,000.00 Total Expenses: P 71,801.45

Final Audit- ECOLINK

AUDIT FINDINGS AND RECOMMENDATIONS:

1. The ECOLINK has been observing its Internal Financial Management System that

follows generally-accepted principles and procedures including, among others, cash

disbursement and receipt as well as recording systems.

2. All recommendations in the previous audit have been carried out.

3. There are some inconsistencies in the data in CV but these are rationally negligible and

do not cause any irregularity in the financial records.

4. My wishes for the project’s success and continued service to the community.

5. More power and God bless!

Final Audit- ECOLINK