Director Leonor Boado,

Philippine Commission on Audit 1

Auditors and
!nvestigators
working together to
fight corruption:
The Philippine
Experience
D|rector Leonor D 8oado D|rector Leonor D 8oado
Iraud Aud|t and Invest|gat|on Cff|ce Iraud Aud|t and Invest|gat|on Cff|ce
h|||pp|ne Comm|ss|on on Aud|t h|||pp|ne Comm|ss|on on Aud|t
Director Leonor Boado,
Philippine Commission on Audit 2
h|||pp|nes' ant|corrupt|on |aws
kev|sed ena| Code
Ma|versat|on of $450 6 years
|mpr|sonment
Ia||ure to ||qu|date cash advance
|n 2 months 4 years |n pr|son
Cua||f|ed theft of $150
max|mum term of 20 years
Director Leonor Boado,
Philippine Commission on Audit 3
h|||pp|nes' ant|corrupt|on |aws
Constitution
Article X!. Accountability
of Public Officers -
Public office is a public
trust
Director Leonor Boado,
Philippine Commission on Audit 4
h|||pp|nes' ant|corrupt|on |aws
ub||c off|cers must at a|| t|mes
W 8e accountab|e to the peop|e
W 5erve them w|th utmost
respons|b|||ty |ntegr|ty |oya|ty
and eff|c|ency
Director Leonor Boado,
Philippine Commission on Audit S
h|||pp|nes' ant|corrupt|on |aws
Public officers must at all
times
W Act with patriotism and
justice
W Lead modest lives
Director Leonor Boado,
Philippine Commission on Audit 6
h|||pp|nes' ant| h|||pp|nes' ant| corrupt|on agenc|es corrupt|on agenc|es
Cff|ce of the Cmbudsman
W Invest|gate and prosecute
pub||c off|cers and co
consp|rators
W Cr|m|na| and/or
adm|n|strat|ve |nfract|ons
Director Leonor Boado,
Philippine Commission on Audit 7
h|||pp|nes' ant| h|||pp|nes' ant| corrupt|on agenc|es corrupt|on agenc|es
Comm|ss|on on Aud|t (CCA)
W revent and d|sa||ow
4 I||ega| |rregu|ar excess|ve
unconsc|onab|e
unnecessary d|sbursements
4 Under co||ect|on of
revenues
Director Leonor Boado,
Philippine Commission on Audit 8
h|||pp|nes' ant| h|||pp|nes' ant| corrupt|on agenc|es corrupt|on agenc|es
&andiganbayan
(AntiCorruption Court)
W Collegiate court of 3
justices/sala
W Exclusive for high ranking
officials and conspirators
W Appellate jurisdiction for
lower ranked officials
Director Leonor Boado,
Philippine Commission on Audit 3
5tandards to gauge |eve| of corrupt|on
Poverty level
Citizen's perception
Director Leonor Boado,
Philippine Commission on Audit 10
5tandards to gauge |eve| of corrupt|on
Poverty level
Of around million
people:
2 N live on less than
$.2S a day
4 N on less than $2 a
day
Director Leonor Boado,
Philippine Commission on Audit 11
&tandards to gauge level of
corruption
W $4 billion (P2.4 trillion)
lost to corruption in the
previous 2 years
W (Phil. Daily !nquirer, 6/3/2)
Director Leonor Boado,
Philippine Commission on Audit 12
5tandards to gauge |eve| of corrupt|on
ow corruption causes
poverty
Lack of disaster preparedness
drives families to poverty
Deforestation thru illicit sale of
permit to cut trees
Farmtomarket road funds
become farmtopocket"
Director Leonor Boado,
Philippine Commission on Audit 13
5tandards to gauge |eve| of corrupt|on
ow corruption causes poverty
Lower educat|on standards for
|ack of schoo|s and educators
Land ownersh|p by |nf|uent|a|
few farmers rema|n |n |and
bondage
Due process |s end|ess process
Director Leonor Boado,
Philippine Commission on Audit 14
5tandards to gauge |eve| of corrupt|on
Citizen's perception
Nost Filipinos believe
many officials are corrupt
Civil societies sprouted vs.
inaction on corruption
Corruptionary"
developed
Director Leonor Boado,
Philippine Commission on Audit 1S
5tandards to gauge |eve| of corrupt|on
Corruptionary
Dictionary of corruption
words and phrases
Contains around 4
words
List increasing
Director Leonor Boado,
Philippine Commission on Audit 16
Corrupt|on words and phrases
Trapo (tra po)
combines first syllables of
traditional politician"
%ag or tattered cloth to wipe dirt
traditional politician like dirty
rags
Director Leonor Boado,
Philippine Commission on Audit 17
Corrupt|on words and phrases
Noderate your greed -
admonition as corruption
is addictive and greed of
the corrupt becomes
excessive
Director Leonor Boado,
Philippine Commission on Audit 18
Corrupt|on words and phrases
Tongpats (tong - pats) -
reverse spelling of patong
meaning on top"
illicit markup for under
thetable commission or
kickback
Director Leonor Boado,
Philippine Commission on Audit 13
Corruption words and
phrases
!inoy - nickname of
Benigno Aquino, ]r.
Face imprinted on PS bill
Demand for PS bribe ($.2S)
Director Leonor Boado,
Philippine Commission on Audit 20
hy corruption increasing
!o systematic,
automatic, speedy,
unbending enforcement
of laws
opportunity + impunity =
corruption
Director Leonor Boado,
Philippine Commission on Audit 21
Attempts to combat
corruption
Congress
Committee on ]ustice
Committee on Cood
Covernment
Blue Ribbon Committee
Director Leonor Boado,
Philippine Commission on Audit 22
Attempts to combat
corruption
Presidential committees
Presidential Commission
on Cood Covernment
Presidential Anti Craft and
Corruption Commission
Presidential Anti
&muggling Croup
Director Leonor Boado,
Philippine Commission on Audit 23
Attempts to combat
corruption
Nany unconvinced
investigations not ripen
to concrete results
sensational for a while
but forgotten
immediately
Director Leonor Boado,
Philippine Commission on Audit 24
Relationship between
COA and ONB
Both constitutional offices
Feared due to oversight
functions
COA fraud audit report basis
of ONB (Ombudsman)
investigation
Director Leonor Boado,
Philippine Commission on Audit 2S
Relationship between
COA and ONB
Office of Ombudsman
Direct public officials to
perform and expedite duty
Compel officials to submit
documents on contracts
and transactions
Director Leonor Boado,
Philippine Commission on Audit 26
Relationship between
COA and ONB
Office of Ombudsman
Order removal, suspension,
demotion, fine, censure
File charge and prosecute in court
Determine causes of inefficiency
and recommend remedy
Director Leonor Boado,
Philippine Commission on Audit 27
Relationship between
COA and ONB
COA
Audit and investigation
Disallow !!UUEE
expenditures
!ssue accounting and
auditing rules
Director Leonor Boado,
Philippine Commission on Audit 28
Further attempts vs.
corruption
&olana Covenant
COA, ONB and 4 others
Concrete initiatives like
coordinated investigation
Fizzled out and group
hibernated
Director Leonor Boado,
Philippine Commission on Audit 23
Further attempts vs.
corruption
Constitutional !ntegrity
Croup
COA, ONB, Civil &ervice
Commission
&et up website for fraud alert
Pursued officials who have
not liquidated cash advance
Director Leonor Boado,
Philippine Commission on Audit 30
COAONB
COLLABORAT!O!
&eparate focus group
discussions to identify
issues and concerns
]oint workshop to iron
out issues and concerns
Director Leonor Boado,
Philippine Commission on Audit 31
COAONB
COLLABORAT!O!
Plan of action with time
frame
NOU to commit
cooperation
eads of COAONB
signed NOA for areas of
cooperation
Director Leonor Boado,
Philippine Commission on Audit 32
COAONB
COLLABORAT!O!
Areas of cooperation
]oint investigation of
high profile cases
!nventory active cases
and set up records unit
and evidence rooms
Director Leonor Boado,
Philippine Commission on Audit 33
COAONB
COLLABORAT!O!
Areas of cooperation
Case management
system
Cross training
]oint guidebook on case
building and prosecution
Director Leonor Boado,
Philippine Commission on Audit 34
COAONB
COLLABORAT!O!
]oint Circulars to
implement NOA
Conduct of joint
investigation
Case Nanagement
&ystem
Director Leonor Boado,
Philippine Commission on Audit 3S
COAONB
COLLABORAT!O!
Cross training
ONB prosecutors trained on
audit procedures, rules and
regulations
Auditors trained on case build
up, be effective court witness
&ide result - camaraderie speed
up task
Director Leonor Boado,
Philippine Commission on Audit 36
COAONB
COLLABORAT!O!
]oint investigation
!nvolves at least $.2 million
Respondents &alary Crade
2 or above - mayor,
governor, department
secretary, etc
Case has greater impact on
public
Director Leonor Boado,
Philippine Commission on Audit 37
COAONB
COLLABORAT!O!
]oint investigation team
(]!T) Composition
CPAlawyers from COA
FA!O
!nvestigators and
prosecutors from ONB
Director Leonor Boado,
Philippine Commission on Audit 38
COA FA!O
Created in Dec. 2
!nvestigate and charge
erring auditors
&pecial audit involving
fraud in government
transactions
Director Leonor Boado,
Philippine Commission on Audit 33
COA FA!O
!nvestigated over
auditors and charged 3
Filed 3 fraud audit
reports to ONB since
2
Director Leonor Boado,
Philippine Commission on Audit 40
COA FA!O
&ample of audit reports
Failure to account for and
issue ORs $,
Overpriced rubber boats
$,
Rented vehicles instead of
buying $23S,
Director Leonor Boado,
Philippine Commission on Audit 41
COA FA!O
&ample of reports
Nayor of small town not
liquidate cash advance since
24 to now $63,
Farmer assistance program
failed due to connivance
$ million
Director Leonor Boado,
Philippine Commission on Audit 42
COA FA!O
ONB action on fraud reports
&ubject to factfinding
investigation
Preliminary investigation after
fact finding
Case filed with &andiganbayan
Takes two or more years
Director Leonor Boado,
Philippine Commission on Audit 43
]oint investigation test
case
!llegal benefits to organic
and nonorganic personnel
Future benefits accrued and
paid via cash advance
Compound accounting entry
and improper accounts to
hide
Director Leonor Boado,
Philippine Commission on Audit 44
]oint investigation test
case
Double charging to different
budgetary accounts (P& and
NOOE)
Double charging to different
funds managed by agency
Total amount may reach $2
million
Director Leonor Boado,
Philippine Commission on Audit 4S
Ultimate aims of ]!T
!dentify and charge erring
officials
Prosecute successfully (ONB as
prosecutor/auditor as witness)
&end message that civil
servants not rob government
Recover amounts lost
Director Leonor Boado,
Philippine Commission on Audit 46
hy men do evil
Trtansr srntrntr auainst a hae
erk has net hrrn rxrtntre
scrrei|v. that is hv thr hrart e|
thr sens e| nrn has hrtenr |n||v
srt in thrn te ee hae.
Ecclesiastes 3: