COA uncovers P100 million in releases to questionable NGOs

The Commission on Audit. INQUIRER FILE PHOTO

MANILA—More than P100 million in allocations for two senators as well as 20 representatives from the Priority Assistance Development Fund and Disbursement Acceleration Program was  released by Philippine Forest Corp. to dubious foundations last year, according to a new report from the Commission on Audit.

In its 2012 annual audit report on Philforest released this month, the COA said the PFC,  “without any legal basis”  and in complete disregard of COA guidelines, released P100.17 million in funds from the Priority Development Assistance Fund  and DAP to various NGOs that were either ill-equipped to handle such funds or had fake addresses or both.

The lawmakers involved in the questionable release of PDAF and DAP funds were  Senators Gregorio Honasan (P31.75 million) and Lito Lapid (P1.25 million) and Representatives  Rey Umali (P13.45 million), Raymond Democrito Mendoza (P9.1 million), Lorenzo Tañada III (P7 million from DAP), Fatima Dimaporo (P3.5 million), Isidro Q. Lico (P3.15 million), Antonio Alvarez (P2.8 million), Michael Angelo C. Rivera (P2.25 million), Salvador P. Cabaluna III (P2.25 million),  Rodolfo G. Valencia (P1.91 million),  Jose S. Aquino II (P1.75 million), Ponciano D. Payuyo (P1.7 million), Hadjiman Hataman-Sulliman (P1.65 million), Joel Roy R. Duavit (P1.5 million),  Teodorico T. Haresco (P1.05 million),  Nelson Dayanghirang (P1 million), Nicanor M. Briones (P750,000), Jose Benjamin Benaldo (P750,000), Maria Isabelle G. Climaco (P600,000), Yevgeny Vicente B. Emano (P450,000), and Robert Raymund Estrella (P210,000).

The COA was unable to complete its audit of P9.225 million worth of checks because the receiving NGOs could not be located.  The COA said Philforest was given P162.105 million in allocations between 2011 and 2012 of which P30 million was from DAP.

The eight shady NGOs identified that COA had recommended for blacklisting were: Kapuso’t Kapamilya Foundation Inc. or KKFI (P32.75 million), Focus on Development Goals Foundation Inc. or FDGFI (P28.65 million) Maharlikang Lipi Foundation Inc. or MLPI (P24.87 million), Kaagapay Magpakailanman Foundation Inc. or KMFI (P5.95 million) Pangkabuhayan Foundation Inc. or PFI (P2.9 million), Workphil Foundation Inc. (P2.55 million), Livedures Foundation Inc. or LFI (P1.5 million), and Interactive Training Opportunities on Needs Alleviations Movement Inc. or ITONAMI (P1 million).

The COA said that while Philforest was designated as the implementing agency for the jathropa planting program in the 2011 budget (from where some of the funds were carried over to 2012), “The documents submitted by NGOs were deficient and defective and appeared that these were submitted for compliance purposes only. It is evident  that the Philforest accepted them without reviewing their completeness and correctness.”

Based on its findings, the COA said some of the money was released mainly on the endorsement of the proponents; the NGOs lacked the required certificates of registration from the Securities and Exchange Commission; the NGOs were operating outside their office location; some NGOs had non-existent addresses;  Philforest released the final tranches of the PDAF and DAP despite incomplete liquidation reports from the NGOs; and NGOs were paid 3 percent retention fees even if their projects were not fully implemented.

The COA has recommended the filing of charges, such as dereliction of duty, against accountable officers and employees responsible for releasing the pork barrel and DAP funds.