COA says NGO got 'illegally disbursed' funds from DSWD-7

The Department of Social Welfare and Development Field Office-7 has illegally disbursed some parts of the Priority Development Assistance Fund for a project of a non-government organization, according to a report of the Commission on Audit recently.

The COA said that the DSWD's regional field office had disbursed a total of P5.4 million from the PDAF but P3.9 million of this was made through Bidlisiw Foundation for a project of the VINE Foundation, which has no accreditation from the DSWD.

From August 2002 to July 2005, there were checks issued to transfer money from the PDAF to Bidlisiw supposedly to cover operation expenses of VINE.

Bidlisiw submitted a fund accountability statement for VINE operations, and this showed that out of the over P2.64 million it had disbursed, over P1.32 million were spent for salaries and P195,000 for fund management fee.

Bidlisiw said the project proposal stipulated that DSWD-released PDAF would cover the total operating expenses of VINE. COA however said this violated its Circular 96-2003, the National Budget Circular 476, and the DSWD Memorandum Circular 24-2005-banning the use of PDAF for payment of salaries.

The DSWD' field office management commented in its audit report that VINE is a consortium of NGOs based in the sixth district of Cebu, and that it is an organization that listed Bidlisiw among its members.

COA however said VINE has been distinct and legally separate from Bidlisiw, because its articles of incorporation did not mention Bidlisiw among its members.

An administration staff of Bidlisiw has confirmed COA's observation saying that Bidlisiw has been the fund manager only of VINE's Balay Dangpanan, a crisis center in Lapu-Lapu City. The staff added that the VINE project fund was approved to include the salaries of its personnel.

A source from the DSWD field office bared that, during the exit conference, they explained to COA that PDAF could be spent for salaries and benefits of an NGO for as long as it is the enforcer of the proposed project.

Non-accreditation with the DSWD has not been a strict requirement for as long the NGO has a DSWD license, the source added. -Ferliza C. Contratista/RAE