Treñas Denies Involvement in Mabilog’s COA Disallowance Issue

By Rjay Zuriaga Castor

Iloilo City Mayor Jerry Treñas has firmly denied any involvement in a request for the Ombudsman’s intervention regarding a disallowed transaction under former Mayor Jed Patrick Mabilog’s administration.

The issue stems from the Commission on Audit (COA) disallowing a P39.7-million procurement of a landfill compactor in 2014, citing irregularities. A Notice of Disallowance was issued in 2017.

“His own disallowance, it’s from the COA. I have nothing to do with that,” Treñas said.

A COA disallowance occurs when an audit disapproves a government transaction, either fully or partially. Transactions deemed irregular, unnecessary, excessive, extravagant, or illegal require public officials involved to return the funds.

“I am not clear on this issue because what is my connection with it since it happened under his administration? I really do not care,” Treñas added.

Despite distancing himself, Treñas acknowledged that the legal procurement process was not followed.

“The P39 million compactor was paid without following the legal process, which is why it was disallowed. It was paid without an appropriation,” he said.

Treñas also underscored the legal framework surrounding public expenditures, emphasizing that government funds cannot be spent without a valid appropriation.

“You have to understand the basic rule in local or national government: No public funds can be expended except with a valid appropriation. But there was no appropriation,” he argued.

Comparing financial management between administrations, Treñas pointed to his city’s ongoing market renovations.

“Our loans for the market have to be included in our annual or supplemental budget before they can be appropriated,” he explained.

On Feb. 5, former Our Lady of Lourdes, Jaro Barangay Captain Amado Jubelag Hollero sought the Ombudsman’s help, urging either a refund or submission of required documents.

COA first flagged the transaction in its 2014 Annual Audit Report due to missing documentation, issuing a Notice of Suspension in 2016, followed by a Notice of Disallowance in 2017.

A COA Notice of Disallowance may hold officials personally liable for any irregularities.

The city government appealed the decision, but by then, Mabilog had gone into hiding for seven years, fearing for his safety after being publicly accused by then-President Rodrigo Duterte of links to the illegal drug trade.

Despite the appeal, COA upheld the disallowance in 2018. By 2021, the issue remained unresolved, with COA recommending proper accounting adjustments.