COA questions 9 solons’ pork

MANILA, Philippines–The Commission on Audit has questioned the Philippine Forest Corp.’s (PFC) release of P115 million in pork barrel funds to three nongovernment organizations (NGOs) handpicked by nine lawmakers without any bidding.

In its report, the COA said the release of the funds to three NGOs—Kalipunan ng mga Samahan ng Mamamayan Inc. (Kasama Inc.), Maharlikang Lipi Foundation Inc. (MLFI) and Kapuso’t Kapamilya Foundation Inc. (KKFI)—was without legal basis as they were selected by mere endorsements from nine past and present members of the House of Representatives.

The COA said this was contrary to Resolution No. 12-2007 of the Government Procurement Policy Board (GPPB) and that the 2011 General Appropriations Act (GAA) which earmarked the “Upland Agro-Forestry Development Program specifically for the Planting of Jatropha Curcas” did not have a provision stating that these projects could be contracted out to NGOs.

The PFC released P15 million in pork funds to these NGOs in 2013 even though the foundations had not yet liquidated their previous releases worth P34.273 in 2011 and 2012.

The Priority Development Assistance Fund (PDAF) for the three NGOs came from nine lawmakers: Masbate Rep. Antonio Kho (P30 million), Laguna Rep. Ma. Evita R. Arago (P5 million), Cagayan de Oro Rep. Jose Benjamin A. Benaldo (P15 million), Cebu Rep. Ramon Durano (P9 million), Basilan Rep. Hadjiman Hataman-Saliman (P11 million), Apec Rep. Ponciano Payuyo (P2 million), Agap Rep. Nicanor M. Briones (P5 million), and 1-CARE Representatives Salvador Cabaluna (P22.5 million) and Michael Angelo C. Rivera (P15 million).

The COA said it would issue a notice of disallowance for the PDAF releases.

The state auditors also said the PFC failed to provide accreditation documents and memorandums of agreement between Kasama and the lawmakers, which prevented the COA from determining whether Kasama was legitimate and whether the parties involved performed their duties of delivering and monitoring the project.

Further investigation showed that Kasama, which received a total of P5 million in pork funds, was not a registered member of the Cooperative Development Authority (CDA).

The other NGOS—MLFI, which received P2 million, and KKFI, which received P103 million—were given P12 million in additional pork in 2013 even though they had yet to liquidate the P34 million that they received in 2011 and 2012, contrary to COA guidelines.

“The nonliquidation by the NGOs of the funds released to them, [raises] doubts as to whether the funds released to them were really expended for the purpose [intended],” the COA said.

It also noted that the NGOs were not based in the community where the projects are located, in violation of COA rules that require NGOs to be based in the communities where the projects are to be executed.

The COA also noted missing subsidiary ledgers on P443.29 million funds given to NGOs, which made it difficult for its auditors to determine which NGOs still have outstanding accounts and how much their remaining accountabilities are.

In its reply, the PFC, through its acting president, Environment Undersecretary Annaliza Teh, said that its bookkeeper could not produce these documents because the previous PFC management under Erwin Krishna Santos did not provide relevant vouchers and supporting documents, including schedules of payments, collections and accounts, accounting records and reports such as liquidation reports, reports of checks issued and reports of disbursements.

Liability

The COA said it would assess the liability of past and present PFC officials for the missing documents.

The acting PFC president has committed to send demand letters to the concerned NGOs seeking a refund of unliquidated PDAF. She also said she would institute legal action against the liable officers and employees and the NGOs.