STATE AUDITORS flagged the Energy Regulatory Commission (ERC) for failing to remit taxes withheld from employees, contractors and suppliers in the past two years worth P18.79 million.
In its 2022 audit report made available on June 8, 2023, the Commission on Audit (CoA) said the ERC failed to fully comply with Bureau of Internal Revenue (BIR) rules by failing to transmit P11.67 million in 2022 and P7.12 million in 2021.
“Taxes withheld from the salaries and wages of the employees and payment to contractors/suppliers of goods and services during the year totaling P64.24 million and the prior year’s balance of P15.53 million were not remitted in full,” CoA said.
The ERC released P52.57 million of the withheld taxes in 2022 and P8.68 million for 2021.
CoA urged the management to immediately transfer the outstanding balance to the National Treasury.
“The ERC recognized the recommendation of CoA to ensure compliance with BIR rulings on tax remittances,” CoA noted.
The agency’s “FAS-AD (Financial and Administrative Service-Accounting Division) shall comply with all the adjustments needed to prepare particularly on the previous taxes withheld,” it said.
ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said via Viber on Sunday, “I believe we already submitted our explanation to CoA on these observations.”
CoA also noted that the Development of the Transmission Regulatory Asset Base (RAB) Handbook and the Transmission Planning Manual for the National Grid Corp. of the Philippines (NGCP) was not completed within its contract period and has been delayed for more than a year.
“The ERC has decided to proceed with the project, and the submitted outputs and deliverables will be used to bring the project to completion,” CoA said.
The ERC’s unsettled audit disallowances for 2022 amounted to P32.51 million, state auditors said. — Beatriz Marie D. Cruz
