COA: 2 questionable foundations received P30.1 M ‘pork’

MANILA, Philippines - Two questionable foundations received in 2011 more than P30.1 million from the priority development assistance fund (PDAF) of Sen. Gregorio Honasan, and former Representatives Risa Hontiveros of Akbayan and Alfonso Umali Jr. of Oriental Mindoro,  the Commission on Audit (COA) said yesterday.

In a report, COA said auditors found signs of possible irregularities in the manner government money was possibly misused.

Records show that Honasan and Hontiveros released a total of P29.1 million of their PDAF to Sagip-Buhay People Support Foundation Inc. (SBPSFI).

Umali gave P1.043 million of his pork barrel funds to Kaagapay Magpakailanman Foundation Inc. (KMFI).

The PDAF releases were coursed through the National Agribusiness Corp. (NABCOR), a government-owned and controlled corporation (GOCC) acting as the corporate arm of the Department of Agriculture (DA).

Honasan and Hontiveros released P25 million and P5 million for “Development and Implementation of Agricultural Production” projects in Gamu in Isabela, Lanao del Sur, Hernani in Eastern Samar, and Doña Remedios Trinidad in Bulacan.

Records show that a Memorandum of Agreement (MOA) was executed for each project between NABCOR, SBPFSI, and the offices of Honasan and Hontiveros in July and August 2011.

Honasan’s project involved the procurement and distribution of 9,700 kits of high value crops to the war widows, orphans and families of disabled servicemen in Camp Melchor de la Cruz in Gamu, Isabela and Camp Amai Pakpak in Lanao del Sur.

That of Hontiveros was for the procurement and distribution of 1,940 kits also of high value crops to the marginalized individuals and/or families in the municipalities of Hernani, Eastern Samar and Doña Remedios Trinidad, Bulacan.

The COA said the grant, procedure for availment, release, utilization, accounting, reporting, and liquidation of funds for both projects violated auditing rules, the MOA, and the Government Auditing Code of the Philippines.

State auditors learned that SBPFSI is located in Quezon City, while the projects implemented were based in Lanao del Sur, Isabela, Bulacan, and Eastern Samar in violation of the requirement “of ensuring that the NGO be based in the community where the project shall be implemented.”

Auditors said the foundation submitted financial reports for the years 2007 to 2009 supposedly audited by an independent certified public accountant, who had different signatures.

 â€œHowever, it was noted that the signatures were not the same. Verification of Professional Licenses from the Professional Regulation Commission (PRC) revealed that the said CPA has no matching record found with the list in the Certified Public Accountant Registry Books of PRC,” the COA report said.

Auditors said the official receipts issued by SBPFSI as evidence of receipt of the funds from NABCOR were not registered with the Bureau of Internal Revenue.

State auditors found that the high value crops starter kits were bought from a supplier from San Miguel, Bulacan, far from the location of the projects in Lanao del Sur, Eastern Samar and Isabela with no delivery costs charged.

“The procured starter kits, as agreed upon by the parties, consisted of packs of ampalaya, King Solomon pepper and tomato seeds, vermicast, three bottles of fertilizer, malunggay seedling, manual on high value crops and bayong,” state auditors said.

“However, examination of pictures relative to the distribution in Doña Remedios Trinidad, Bulacan revealed that the items were contained in plastic bags,” the auditors said.

“On the other hand, starter kits distributed in Hernani, Eastern Samar were contained in bayongs, however, the seedlings in the pictures were not malunggay.

“Likewise, items distributed per pictures submitted consist of eggplant, papaya, squash and okra seeds. Fertilizers were in different forms such as bio-organic, foliar and liquid fertilizers.”