A P3.6M loss of income from souvenir shops alone; the noted dishonesty in entrance ticket collections and the alleged monopoly by a mayor’s kin of the business control inside the Chocolate Hills complex are among the major management defects found out by the special audit team created by Capitol. The findings were contained in the 52-page Special Audit Report dated May 3, 2013 submitted to the Sangguniang Panlalawigan by Provincial Internal Audit Office head May D. Limbaga. The special audit team was created to look into the books of the Chocolate Hills management after its income drastically dropped despite the reported increase of tourists coming to Bohol. Board Member Godofreda Tirol, chairperson, Committee on Tourism reported Friday that with the glaring results in the audit, the committee members decided to have the findings referred to the committee as a whole for more comprehensive discussion on the issues.

The essence of the referral is for every SP member to be given a voice in the discussions proceedings and be part of whatever decisions the SP as a whole would give in support to the decision to be dispensed by the executive office, the Tirol committee report said. The Chocolate Hills Tourism Complex in Carmen, Bohol is managed by the local government which retains 70% of the income while the provincial government gets 30%. The provincial share has decreased by 16.107% in 2011. From 2010 share of P8.2M, the province only got P6.8M in 2011. The audit findings concluded that the continued decrease in toll fee collection despite the arrival of tourists, monthly net loss operations of the restaurant and the hotel, and the ultimate decrease of the opportunity lost of income in millions; - all these, are pure and simple evidence of mismanagement of the overall operations of the Chocolate Hills.

MONOPOLY

Price of souvenir items are high resulting from alleged monopoly of operations. Souvenir shops operating in the Chocolate Hills complex had been giving 20% commission on all consigned goods but were stopped by Mayor Delos Reyes in January 2011. While all shops were stopped, one shop has been allowed to operate but this particular shop is not giving 20% commission to the management. It was also found out that the shop, (the one owned by the Mayor’s sibling) is not also paying space rental occupied in the restaurant area, not paying electric bills and water consumption. As gathered from interviews of tour operators, guides and the public, the Capitol audit team found out that food and beverages at the main restaurant (operated by the Chocolate Hills Complex) are not always available or out of stock, while the store beside the main restaurant allegedly owned by a twin-sister of Carmen mayor Conchita Delos Reyes, is always full of stocks making most tourists go and buy at their shop instead of patronizing the complex’s restaurant. Photographic services has also been giving 20% commission to the management but was stopped since October 2010. In the past administration of then Mayor Boy Molina, a “photo up” at the observation deck area was fenced-off because it presents danger to tourists but now the same spot is opened to the public for picture taking operated by two private photo shops allegedly also owned by Mayor Delos Reyes’ sibling.

MILLIONS LOST

An income of P802,794.90 in ten months from the 20% commission was an opportunity lost from this particular photo services. Restaurant operation is also losing. There are also evidence presented pointing to weak internal control in cash remittance procedure and documentation. Purchases were not supported by official receipts; no utilization of inventory in the kitchen; no actual matching between purchases and orders from customers hence purchases can be bloated. Claims from suppliers were also paid without ORs. An average 38 employees given free meals and the restaurant registered a loss of P.5M in 2010; P.4M in 2011 and P1.1M in 2012. The CY 2011 financial performance, reported the operating cost exceeded the Gross Income by 41.75%, thus resulting to net loss of P2,010,632.96. Efforts to contact Carmen Mayor Delos Reyes for her comment on the findings of the Internal Audit Report failed until this paper went to press last night.