COA: P384-million donations left sitting in banks

MANILA, PHILIPPINES – More than P384 million donations has kept in the bank account of the Office of Civil Defense (OCD) instead of distributing the money for the relief and rehabilitation of the victims of calamities and disasters, according to the Commission on Audit (COA).

In the 2014 report released recently by COA, the funds have been accumulating since 2008 due to its low utilization rate of only 17.39%.

According to financial records, out of P466 million, only P81 million was spent in the last six years, leaving a balance of P384 million.

The biggest chunk of money received by the OCD was P137 million, from various government agencies and from other donations for the victims of Typhoon Yolanda which devastated the country two years ago.

The COA report indicated the OCD released only P38.755 million as of Dec. 31, 2014, leaving a balance of  P98.24 million. The donations remain deposited in a trust account of the Development Bank of the Philippines (DBP) where it earned P1.709 million of interest.

State auditors said, “Utilization of the donations from foreign and local donors in the total amount of P81,068,471.49 was low, depriving the calamity victims of the much needed assistance to alleviate their difficulties.”

The OCD said to COA that the failure of immediate release of the calamity fund was due to beneficiaries or claimants’ lack of compliance with the requirements.

State auditors said that OCD should review and overhaul its system so the money would reach its intended recipients without having many requirements that would make them have difficulties in claiming the funds intended for rehabilitating their lost properties.

Negros Occidental Rep. Alfredo Benitez called OCD “calamity underspending.”

“This merits a full-blown investigation. Our country has been hit by calamity after calamity. There is no explanation and certainly no excuse that will justify why the money was not given to those who needed it most,” Benitez said in a report by The Philippine Star.

Reps. Rodito Albano of Isabela; Lito Atienza (Buhay party-list); Ben Evardone (Eastern Samar); Leah Paquiz (Ang Nars party-list), and Ferdinand Martin Romualdez (Leyte), said the COA only reported and confirmed that government agencies have remiss in assisting calamity-hit areas.

According to the representatives, the COA report shows the “very low” utilization rate of OCD only having 17.39% despite of P466.019 million of donations received by them.

Aside from the Typhoon Yolanda, among the calamities that were underspent were the Zamboanga siege, P158.924; and the Bohol earthquake at P4.983 million. Both occurred in 2013.

In a report by The Philippine Star, it indicated that the COA also reported the agency’s Quick Response Fund (QRF), which accumulated to P923,153,721 as of Dec. 31, 2014 “was not utilized as envisioned and became idle.”

State auditors also reported there was clearly “no planned action of activities for the releases of funds resulting in the low rate of utilization.”