COA: Gamblers, drug pushers gained from CCT

MANILA, Philippines - Government money spent on the conditional cash transfer (CCT) program, which is supposed to be given to the poorest of the poor, end up in the hands of gamblers, drug pushers and even rich people, the Commission on Audit (COA) has learned.

In a 2010 report, COA said some CCT beneficiaries mostly in Metro Manila are using the cash dole-outs to finance their illegal gambling activities.

State auditors, saying there is something wrong in the selection process of the Department of Social Welfare and Development (DSWD), said some beneficiaries even own lands, businesses, cars, and other properties.

The CCT, also known as the Pantawid Pamilyang Pilipino Program (4Ps), is a poverty reduction strategy that provides cash grants to extremely poor households. 

But out of 1,400 beneficiaries checked by COA last year, 96 were not extremely poor and were earning income during the validation of beneficiaries, casting doubt on the accuracy of the procedures or methodology used in the selection of poor households.

“The objectives of the program may not be fully achieved if the benefits will not be received by the intended beneficiaries,” state auditors said.

In the National Capital Region particularly those from Commonwealth Avenue in Quezon City, COA found four beneficiaries who are into illegal drugs while 25 are engaged in gambling. Five have relatives who are working abroad. Some 46 beneficiaries were found living in rent-free government property while one inherited a six-door apartment, each one rented out, and whose husband earns P450 a day as a taxi driver.     

In Region II specifically in Minanga, Alibadabad, San Mariano, Isabela, three out of 10 beneficiaries are above average income earners.     

“One owns a bodega whose nature of business is grains trading. Others own tricycle, truck and appliances and their houses are made of strong materials,” the COA report said.      

In Naggasican and Rosario, Santiago City, Isabela, one recipient is a barangay kagawad while another is a teacher who sends her children to private school.

“Another is an owner of half hectare of lot and engages in lending business to tricycle operators and drivers. Also included are grantees that are into gambling. Other beneficiaries are already recipients of LGU (local government unit) resettlement program,” state auditors learned. 

In Sto. Niño, Cagayan, a beneficiary owns a hectare of farmland and her husband is a Department of Environment and Natural Resources (DENR) retiree with a monthly pension.      

In Region III particularly in Muzon, San Jose del Monte, Bulacan, most of the 876 beneficiaries are already recipients of a government housing project, with one even owning and operating an Internet shop.      

In Camias, San Miguel, Bulacan, a beneficiary is supported by in-laws who own a candle factory while another has a husband who earns P18,000 as a liquefied petroleum gas tanker driver.     

In Region IV-A particularly in San Antonio, Bian, Laguna, “some beneficiaries are into illegal electric connections and therefore should not be entitled to the program for having engaged in illegal activity,” COA said.      

In Region VII specifically in the areas of Bicao Carmen, San Miguel, Benliw Ubay, Poblacion, Carbon, Dagohoy, Magtangtang, Nahud, Remedios, Sta. Ana Concepcion, Sta. Fe, San Miguel, Sto. Nio, and Nasingan in Danao and Bohol, there are beneficiaries who own hectares of rice fields and have a rice mill.

In Region X particularly in Centro Napu, Tudela/Eastern Poblacion, and Lopez Jaena in Misamis Occidental, the COA report said 16 beneficiaries were government workers with a monthly income ranging from P11,000 to P19,800 and own a motorcycle and concrete house.      

One beneficiary is connected to a rural bank with a monthly income of more than P10,000 and whose husband is a government employee with a monthly income of over P20,000, and owns a car and a motorcycle.     

State auditors also found a beneficiary who is a businesswoman whose husband is a boat maker and whose family owns two cars and two motorcycles and lives in a concrete house. 

Questionable beneficiaries discovered by COA also included housewives whose husband is either a soldier or an overseas Filipino worker. The COA report said the DSWD failed to adequately validate household data as required under the rules. 

“While entitlement to the program does not consider the income of potential beneficiaries, one of the criteria for eligibility is that the economic conditions of the households should be equal to or below the provincial poverty threshold,” it said. 

The audit team said the CCT program does not disqualify poor people who are already receiving assistance from the government but “there are other poor people who do not receive any form of assistance from the government but should be considered in order to have a fair distribution of the government’s various social protection programs.” COA asked the DSWD to furnish the audit agency with information and/or justification on the inclusion of beneficiaries who were not extremely poor. State auditors also called for the delisting of beneficiaries “who engage in illegal or gambling activities for they are not perceived to be poor.”