COA flags over P700-M undisbursed fuel subsidy in 2025 audit

Make this your preferred source to get more updates from this publisher on Google.

The Commission on Audit (COA) flagged over P700 million worth of fuel subsidies that were not distributed to beneficiaries in its 2025 annual audit report for the Department of Transportation (DOTr) but 70% or P1.9 billion were already distributed.

In a "24 Oras" report by Mariz Umali on Tuesday, of the P709.88 million undisbursed amount, P179.96 million was processed but not credited to the bank accounts of beneficiaries, the majority of whom are tricycle drivers, accounting for P120 million.

COA also flagged P1.589 million in fuel subsidies that were disbursed but rejected due to bank transaction issues, such as incorrect account numbers or mismatched beneficiary names in bank records.

Aside from fuel subsidies, other funds were also reportedly undisbursed, such as those allocated for drivers or operators in Cebu, which was under a state of calamity at the time.

According to the Land Transportation Franchising and Regulatory Board (LTFRB), the amount does not represent a single year's funds but rather the combined remaining funds from 2022, 2023, and 2024.

“Bale po, nagkulang po ang benepisyaryo na ibinigay ng DILG. ‘Yung ibang benepisyaryo naman po ng LTFRB, hindi na po mahanap, hindi na po mabigay, kaya po may natira,” LTFRB Acting Chairman Atty. Greg Pua explained.

(The list of beneficiaries provided by the DILG was insufficient. Meanwhile, some of the LTFRB’s beneficiaries could no longer be located or reached, which is why a balance remained.)

“‘Yung 120 million po na sumobra naman po sa sa tricycle, undistributed naman po sa tricycle, dahil naman po ito sa problema sa kanilang account number, sa pangalan. So, hindi po ma-transfer ng LandBank noong panahon na yun,” he added.

(Regarding the excess P120 million intended for tricycle drivers that remained undistributed, this was due to issues with their account numbers or names. Thus, LandBank was unable to process the transfers at the time.)

While COA acknowledged that 70% (P1.9 billion) of the total subsidy allotment was distributed as of November 30, 2025, it stressed that the remaining balance must be promptly delivered to qualified beneficiaries.

The LTFRB stated that legally, the remaining subsidies can no longer be distributed as the funds expire every two years.

“Legally, technically, hindi pwede. Kasi ‘yung pondo ay nag-expire na siya every two years. Kung pwede, palitan na lang namin ‘yung benepisyaryo para maitulong din namin sa mga nangangailangan po ngayon,” Pua said.

(Legally and technically, it is no longer allowed because the funds expire every two years. If permissible, we would prefer to replace the listed beneficiaries so we can assist those currently in need instead.)

Overpayment, Love Bus

The government auditors also flagged P2.853 million in overpayments due to duplicate submissions of the “authority to debit account,” which have yet to be refunded according to the audit report.

The undisbursed funds are not lost but have been returned to the national treasury.

Meanwhile, for the P380 million budget for the Love Bus “Libreng Sakay” (Free Ride) Program, the commission questioned why the Department contracted only one company to operate the route, noting that the program intends to support various bus drivers and operators.

According to the LTFRB, the funds were donated to them by the Office of the President and provided specific requirements.

“Dapat ay electric at dapat po ay PWD (person with disability) friendly. So wala pong ibang nakita except this one,” Pua said.

(The buses had to be electric and PWD-friendly (persons with disabilities). No other provider met these specifications except for this one.) — Lyjah Tiffany Bonzo/BAP, GMA News