MANILA - The Commission on Audit flagged the Presidential Commission on Good Government for its failure to dispose of recovered ill-gotten assets recovered from cronies of former President Ferdinand Marcos.

In its annual audit report, the COA said the PCGG was not able to attain its targeted income of more than P300 million from recovered assets.

The PCGG is a quasi-judicial agency created by former President Corazon Aquino to recover ill-gotten wealth accumulated during the Marcos regime in the Philippines.

“The agency has not caused the reappraisal of assets subject of public bidding; thus, recovery of P336,014.00 million targeted income from sale of assets was not attained," the COA said.

The assets that were not disposed of were properties in Evergreen Subdivision, Tagaytay City; Puerto Galera, Oriental Mindoro; Calapan City, Oriental Mindoro, Naga City; GMA, Cavite; Bacolod City, and two properties in Tala, Caloocan City.

The COA noted that the General Appropriations Act for 2017 provides for the recovery and administration services of ill-gotten wealth while the Comprehensive Agrarian Reform Law enumerates the funding source of agrarian reform fund which includes all receipts from sales of ill-gotten wealth.

The COA however noted that the PCGG told them that privatization efforts are currently on hold.

“Interview with management revealed that the privatization efforts of the agency were on hold due to the need for re-appraisal of the current market value of the assets. Furthermore, they have expressed that assets not privatized during the year will be included in the privatization plan for next calendar year."

The COA also noted the failure of PCGG to enter into their books the withdrawal of P251 million contingency fund from the remaining Marcos Swiss deposits as well as P116 million dividends from San Miguel Corporation, which were turned over to the Bureau of Treasury last year.

The PCGG however said the entry will be made in its books for budget year 2018.