THE Department of the Interior and Local Government (DILG) has closed four trust fund accounts at the Landbank of the Philippines (LBP) amounting to over ₱12.98 million, following recommendations from the Commission on Audit (COA).
COA had earlier flagged the DILG for maintaining these unauthorized accounts, stating that their creation and retention as of year-end 2023 “had no legal basis.”
According to the DILG, the accounts were initially established to serve as depository accounts for funds received from other national government agencies. These accounts facilitated the prompt release of funds for various programs and projects.
The DILG has already closed the ₱1.73-million RO IX Trust Regular Account and the ₱111,009.42 DILG-NCR Local Government Academy Special Project Account.
Currently, the Department is processing the closure of two additional accounts:
₱1.116-million DILG-NCR Special Project Account
₱10.025-million DILG Central Office Trust Account.
For the Central Office Trust Account, the DILG has returned ₱2.363 million in unutilized funds to the source agency. Additionally, ₱5.834 million has been disbursed to the Department of Trade and Industry and the Bureau of Fire Protection-Interagency Task Force (BFP-IATF). The remaining ₱199,627.90 BFP-IATF fund balance will be used to settle unpaid claims, with any surplus remitted to the Bureau of the Treasury (BTr) by year-end.
To address fund transfer requirements moving forward, the DILG is coordinating with the BTr to establish a Modified Disbursement System (MDS) Trust Account with the LBP. This new account, which will manage funds entrusted to the Department, is expected to become operational in January 2025.