COA can conduct ‘special’ audit of PH Red Cross’ funds: Palace

MANILA – The Commission on Audit (COA) can conduct a “special” audit of the Philippine Red Cross’ (PRC) spending, Malacañang said on Tuesday.

This, after President Rodrigo Duterte earlier asked COA to conduct an audit of PRC, which is a non-government organization (NGO).

In an online press briefing, Roque said Duterte has basis to urge COA to audit funds received by PRC.

Citing Section 4.8 of COA Circular No. 93-003, Roque said PRC can be audited, once the government requests COA to carry out a “special audit” of NGOs like PRC “on case to case basis”.

“May basehan ba ang sinasabi ng Presidente na humingi sa COA ng special audit para sa PRC? Meron po (Does the President have a basis to ask COA to conduct a special audit of PRC? He has),” Roque said.

Roque also said under Article 9 of the 1987 Constitution, COA has the power to examine on a post-audit basis all accounts pertaining to the expenditure or uses of funds by NGOs “receiving subsidy or equity, directly or indirectly, from or through the government.”

“May hurisdiksyon ba ho ang Commission on Audit sa Philippine Red Cross? Ang sagot, meron ho (Does the COA have jurisdiction over Philippine Red Cross? The answer is it has),” he said.

Roque said COA can look into the PRC’s memorandum of agreement (MOA) with Metro Manila mayors for the coronavirus disease 2019 (Covid-19) testing, as well as its MOA to get advance payment of PHP100 million from Philippine Health Insurance Corp. (PhilHealth) for testing service.

“Malinaw kasi ho na nakalagay sa PRC Charter na hindi ito maaaring kumita habang ginagampanan nito ang kaniyang mandato (The PRC Charter clearly states that it cannot earn money while it is fulfilling its mandate),” he said.

Roque added that the advance payment clause under the MOA violates the PRC Charter and Republic Act (RA) 11469 or the Bayanihan to Heal as One Act which states that only reimbursement, not advance payment, in the distribution of goods and services, is allowed.

Roque also questioned the PRC’s move to impose a rate of PHP3,500 per Covid-19 test, even if the machines used for the testing are donated.

He said the cost of Covid-19 is higher compared to the PHP2,077 that PRC should have charged for each test since the machines it is using were donated.

“Kaya kinakailangan nating malaman, lahat ba ng mga makina ay donated, ilan ang donated, at magkano ang siningil. Iyan po ang dapat ma-cover ng audit (That’s why we need to know if all the machines were donated, how many were donated, and how much was the charge. That’s what the audit should cover),” Roque said.

Under RA 10072 inked in April 2010, PRC is acknowledged as an “independent, autonomous, nongovernment organization auxiliary to the authorities of the Republic of the Philippines in the Humanitarian Field.”