WHEN I became a lawyer, it was an annual routine for me to be part of the International Humanitarian Law (IHL) Debate Competition organized and spearheaded by the Philippine Red Cross (PRC) – Iloilo Chapter. I take pride every time I join this prestigious event that heightens public awareness and respect for IHL. This is organized to let people become more acquainted with and well-informed in international issues.
It saddens me to think that we have to postpone the event for two years now due to COVID-19 restrictions.
What saddens me more is how the present administration drew disapproval with the PRC and seek audit of the organization.
The President wants the Commission on Audit (COA) to look into the finances of the PRC after Sen. Richard Gordon sought inquiry into the deficiency found by COA in the handling of the Department of Health’s (DOH) over P67-billion funds for the country’s COVID-19 response.
COA is an independent constitutional body while PRC is a non-government humanitarian organization.
Where do we draw the line then?
The primary function of COA is to examine, audit and settle all accounts and expenditures of the funds and properties of the Philippine government. Section 2 (1), Article IX – D of the 1987 Philippine Constitution expressly provides that “non-governmental entities receiving subsidy or equity, directly or indirectly, from or through the Government” is subject to audit by the Commission. Additionally, these entities are required by law or the granting institution to submit to such audit as a condition of subsidy or equity.
PRC may not be audited because of the fact that it is a non-government institution. However, its contracts with the government agencies can be examined. COA can only examine government funds disbursed by these agencies.
Republic Act 10072, or the Philippine Red Cross Act of 2009, provides that the PRC is “recognized as the voluntary, independent and autonomous nongovernmental society auxiliary to the authorities of the Republic of the Philippines in the humanitarian field.”
The law also provides that the PRC should “submit to the President of the Philippines an annual report containing its activities and showing its financial condition” at the end of every calendar year.
On Feb. 15, 1995, COA issued Circular No. 95-003 which is the accounting and auditing guidelines on the release of fund assistance for non-governmental organizations (NGOs) or people’s organizations (POs).
In the said circular, the COA shall audit the grant of the fund assistance, with emphasis, on the government office’s monitoring and inspection systems, in accordance with laws and regulations. In connection with this, the COA can conduct special audits on NGOs or POs upon request by proper authorities or as determined by the Chairman.These provisions may be the basis of the government to demand COA to audit PRC.
Question is: Was there any appropriations from the government for PRC in order to audit the latter?
It should be noted that members of the Board of Governors of PRC issued a statement that they did not receive appropriations from the government. Its funds “came from private donations of generous individuals, corporations, and partners in international Red Cross and Red Crescent societies.”
The PRC received donations from agencies like the Department of Health, the Banko Sentral ng Pilipinas, and the Philippine Charity Sweepstakes Office. Yet, these donations constitute a small part of their funds, they are properly liquidated, and no dispute has ever been raised regarding them.
The President is firm in his decision to audit PRC especially into the conduct of RT-PCR testing which has a memorandum of agreement with Philippine Health Insurance Corp. (PhilHealth).
Well, I guess, shifting guilt is now the trend as the elections draw closer./PN
