ANGONO, Rizal — Ruling with finality, the Commission on Audit (COA) ordered a former village chief to pay the government a whopping P38.2 million representing what the state auditor claimed were drawn from the general funds of Barangay Kalayaan from 2016 to 2021.
In its Notice of Finality of Decision dated March 5, 2026, COA particularly hinted at encashment of 485 cheques at the Land Bank of the Philippines during the incumbency of Bernardo E. Balagtas as chairman of Barangay Kalayaan.
Aside from Balagtas, likewise named in the order is Marilou D. Eusebio in her capacity as treasurer of Barangay Kalayaan.
“Accordingly, the above named persons liable shall pay the above amount immediately to the agency (COA) cashier,” reads part of the document signed by COA Local Government Audit Sector regional director Dondon Marcos.
NOTICE OF DISALLOWANCE
Prior to the issuance of Notice of Finality of Decision, state auditors State Auditors Marietta F. Paltao and Olivia I. Bautista said that Notices of Disallowances were sent (and officially received) to Barangay Kalayaan for compliance.
“We were now able to audit various disbursements of Barangay Kalayaan due to non-submission of the disbursement vouchers,” said Paltao who led the audit team.
“The aforementioned amount which represents the paid transactions disallowed due to failure to submit disbursement vouchers and its supporting documents despite repeated demand letters, pursuant to existing COA Circular,” she added.
COA likewise ordered the Municipal Accountant to hold both Balagtas and Eusebio accountable.
TREASURER AS PAYEE
Documents obtained by The PH Insider showed that almost all of the cheques had Barangay Treasurer Eusebio as payee.
From June 10, 2016 to August 15, 2019, the barangay treasurer was able to encash 145 out of the 209 cheques issued during this period.
Moreover, Eusebio was also able to encash 340 of the 401 cheques from October 12, 2020 until November 23, 2021.
The list of cheques issued by Barangay Kalayaan also included payments made to Meralco for electricity supply, Manila Water for water consumption, Skyline CATV for the internet service, PLDT, catering services and provincial government revenue shares.