DND, LGUs misused disaster funds

MANILA, Philippines – The Commission on Audit has taken to task the Department of National Defense (DND) and local government units (LGUs) for either misusing disaster funds or failing to put them in a Special Trust Fund (STF).

In its 52-page “2015 Consolidated Report on the Audit of Disaster Risk Reduction and Management (DRRM) Fund,” the COA said several violations in the provisions of Republic Act 10121 or the Philippine Disaster Risk Reduction and Management Act were committed by the DND and various LGUs.

Released on Jan. 19, the report was transmitted to Defense Secretary Delfin Lorenzana’s office on Jan. 10. It was the first time that the COA came up with a consolidated report on the utilization of DRRM Fund appropriated to national agencies, LGUs and government corporate sectors.

DND violations

The report said out of the P572.9 million available disaster funds of the DND for 2015, only P236.31 million was used by the agency – P128.63 million for actual payout while the rest was merely obligated due to pending approval of purchase orders, contracts or deliveries.

The audit body also noted the DND’s misuse of P73.923 million of its Quick Response Fund (QRF). “The utilization of funds amounting to P73,929,934.91 for repairs/reconstruction, using the QRF, was not in accordance with the intended purpose of QRF as authorized in the DND’s budget,” the COA said.

The COA pointed out that under RA 10121, QRF is strictly for emergency use such as for relief and rescue operations during disasters and calamities. The audit body said conducting repairs and reconstruction is not a primary function of the DND but of the Department of Public Works and Highways.

LGUs’ violations

Meanwhile, the COA said 183 LGUs failed to comply with Section 21 of RA 10121, which mandates them to transfer unspent or unobligated balance in their Local Disaster Risk Reduction and Management Fund (LDRRMF) to STF to serve as standby fund in times of emergency.

The COA said a total of P3.05 billion unspent and unobligated LDRRMF was not transferred to STF as of end of 2015.