Republic of the Philippines

1 DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

Community Environment and Natural Resources Office
Region I
DENR Building, Southern, Tagudin, Ilocos Sur

FOR : MARIA CRISTINA N. POSERIO

Supervising Auditor IV
NGS Cluster 6 & 8

: DAISY P. SOLIAN
State Auditor IV
Audit Team Leader

DATE : November 26, 2021

FOR : MOA between DENR and DPWH on Replacement of Trees affected

by road widening.

COMMENT

This has reference to the Audit Observation Memorandum (AOM) No. 21- 005
dated October 20, 2021 from your good Office quoting errors/deficiencies found out by
the COA Technical Audit Team regarding MOA entered into by and between DENR and
DPWH on replacement of cut trees affected by road widening along the National
Highway.

The COA Technical Audit Team noted the following errors: (a) used of
replacement ratio which is not in accordance with the prescribed ratio of 1:100 for every
cut trees; (b) not compliant with the required establishment of plantation sites; (c) based
in the STCPs the CENROs for the year 2019 to June 2021 there were no transferred of
funds from DPWH for the cost of the replacement of the total cut trees with quantity of 2,
412 received by the PENRO Ilocos Sur; (d) the PENRO directly engaged the services of
one PO and BLGU for the implementation of tree replacement project without the
intervention of the DSWD particularly in the selection of program participants; and (e)
the CENRO’s failed to submit reports regarding the inspection and inventory count of
trees after the cutting by the DPWH.

In view of the foregoing, the CENR Office, Southern, Ilocos Sur, respectfully
manifests and submits its comment to the aforementioned audit observations.

The used of replacement ratio not in accordance with the prescribed ratio of 1:100 for
every cut trees.

As prescribed in the DENR Memorandum Order No. 2012-02 which thereafter

superseded by DPWH-DENR-DSWD Joint Memorandum Circular 2014-01 the
replacement ratio of cut trees is 1:100 for naturally grown trees and 1:50 for planted trees.
However due to the shortage of funds transferred by the DPWH (CYs 2017-2018) the
1:100 ratio required was not followed instead a lesser replacement ratio was utilized. 1

As programmed by the DENR Region I there are only 40 has established plantation sites
instead of the required 95.4 has plantation sites funded by the DPWH.
1
Page 4 of AOM 21-005.
 As per records, this Office was supposed to establish 59.2 has plantation sites
however only 38.4 has plantation sites were established. The target was not accomplished
because of lack of funds which is clearly this Office is not in control of. That is to say,
PENRO Ilocos Sur was able to received funds for the implementation of replacement
trees out of transferred funds from the latter amounting to P600, 764. 00 out of P2, 803,
128.00 available funds from the Regional Office.2 (ilatic supplied)

Based in the STCPs the CENROs for the yearr 2019 to June 2021 there were no
transferred of funds from DPWH for the cost of the replacement of the total cut trees
with quantity of 2, 413 received by the PENRO Ilocos Sur.

In the case of CENRO Southern, llocos Sur there were 409 trees cut from the years 2019-
2021.

This Office commits to conduct review and assessment as to the permits issued to
DPWH for the cutting of trees for the CYs 2019 to June, 2021 for us to determine the
total amount to be collected from the DPWH and for the same to be utilize for the
implementation of project/s. Likewise, for the same not to be repeated in the future this
Office further commits to abide with the existing laws, rules and regulations.

The PENRO directly engaged the services of one PO and BLGU for the implementation
of tree replacement project without the intervention of the DSWD particularly in the
selection of program participants.

The CENRO’s failed to submit reports regarding inspection and inventory count after the
cutting by the DPWH.

Please kindly be informed, that our Officers had monitored and supervised if not
all at least most of the cutting operations of DPWH. In addition, the logs from the cut
trees covered by STCP Nos. 2017-56 to 2017-60 are with a total of 149.5 cu. meters and
the 62.14 cu. meters were already donated to different LGUs, schools and PNP’s for the
manufacture of tables, chairs, rehabilitation of barangay hall, COVID-19 facilities and for
other noble projects.3 However, the difference of 86.12 cu. meters are kept and deposited
at Barangays Mantanas and Caparian, Sta. Cruz, Ilocos Sur and Brgy. Lacong, Tagudin,
Ilocos Sur.4 (Photos of the depository areas will follow.) (Based on records, there were
only seven (7) trees were cut with 2. 576 cu. meters. out of the 35 trees applied by the
DPWH to be cut as per STCP Nos. 2017-120 only. The logs from the cut tress under
STCP Nos. 2017-120 to STCP Nos. 2017-123 had a total of 16.7108 cu. meters with a
total of 70 trees and part of it the 10 cu. meters were already donated and the difference
of 6. 7108 cu. meters are ________________. 5 Wood materials from cut trees covered by
STCP No.: 2017-138 which consists of 9 cut trees with various sizes equivalent to 3.0 cu.
meters were already donated to BLGU. 6 As regards to the logs from cut trees covered by
STCP No. 2018-35 with a total of 1.355 cu. meters were ____________ (DOD is
nowhere to be found we are currently communicating with the barangay officials.) 7
Wood materials covered by STCP No. 2018-54 with a total of 117 cut trees out of 125
2
Ibid.1 and Page 5 schedule of releases per financial performance.
3
Copies of the CSW Report and Deeds of Donation.
4
CSW report for STCP Nos.: 2017-56 – 60 and Deeds of Donation.
5
Copies of the Special Tree Cutting Permit Nos.: 2017-120 to 123.
6
Copies of the CSW Report and the Deed of Donation.
7
trees applied by the DPWH to be cut. The total of 9.6. cu. meters were donated to the
Barangay Local Government of Brgy. Bitalag, Tagudin, Ilocos Sur 8 and the difference of
__ cu. meters were ________? (Still can’t reconcile the records, submission of the
documents will follow.) Wood materials from cut trees covered by STCP No.: 2019-01
with estimated volume of 7. 77 cu. meters, a volume of 7. 26 cu. meters were permitted
but not affected by the project which are composed of 69 different trees and 3.8 cu.
meters cannot accounted during the inventory. Wood materials covered by STCP No.:
2019-02 composed of 6. 167 cu. meters were deposited at the Brgy. Pila West, Sta. Lucia,
Ilocos Sur and .663 cu. meters permitted standing trees are also accounted but not
affected by the project composed of 4 fruit bearing trees which were included based on
the issued permit. Wood materials from STCP No.: 2019-03 were deposited at Brgy.
Conconig West, Sta. Lucia, Ilocos Sur with a total estimated volume of 1. 69 cu. meters.
The abovementioned stockpiled of wood materials were temporarily under the custody of
the barangays who has jurisdiction thereto considering that this Office has no adequate
depository area.9 Wood materials covered by STCP No. 2019-04 are currently deposited
at Brgy. Langlangca 2nd, Candon City, Ilocos Sur and the Barangay Officials therein
informed this Office of their intention to utilize those logs for the improvement of their
barangay hall and for any purposes for the benefit of the community. Wood materials
covered by STCP No.: 2020-05 with a total of 40.93 cu. meters were donated to
_________________.10 (DOD’s STCP Nos.: 2020-05, 2020-06 and 2020-07 are nowhere
to be found. ;( Wood materials covered by STCP Nos.: 2020-08 to 09 with 12. 21 cu.
meters and 10. 05 cu. meters, respectively, were donated to the Municipal Local
Government of Sta. Cruz, Ilocos Sur for the manufacture of furniture, COVID 19 facility
and maritime coast guard facilities.11

Moreover, the copies of Special Cutting Permits (STCP) Nos.: 2021-01 to 2021-05
are likewise hereto attached.12 To add, logs under STCP No.: 2020-01 with a total volume
of 7. 56 cu. meters were already donated to Barangay Local Government Unit of
Balidbid, Salcedo, Ilocos Sur.13

In view thereof, this Office appreciates the effort of the Commission for calling
our attentions to be more mindful of the applicable laws, rules and regulations and to
strictly comply with all the necessary documents needed. Thus, we commit to strictly
adhere to the said laws, rules and regulations and to be heedful in accomplishing all the
necessary documents needed in every projects to avoid the same errors in the future.

In view of the foregoing, may we humbly pray that this Comment on the Audit
Observation made by the Audit Team as per AOM No. 21-005 be given favorable
consideration.

DANILO P. MANALOTO
CENR Officer

8
Copies of the Terminal Reports and Deed of Donation.
9
Copy of the Inventory Report.
10
Copy of the Deed of Donation.
11
Copies of the Deeds of Donation.
12
Copies of the STCPs.
13
Copies of the Deed of Donation, photos and tally sheet