DFA fails to release P112-M retirement benefits of OFWs, says COA

MANILA, Philippines — The Commission on Audit has called out the Department of Foreign Affairs for P 112.2-million worth of benefits for the overseas Filipino workers which remains “unclaimed/unreleased” for more than 10 years.

In an annual audit report recently published on its website, the COA noted that from 1997 to October 2016, a total of P1,095,976,467.06 was remitted by various DFA Foreign Service Posts (FSPs) to the DFA's Office of the Undersecretary for Migrant Workers Affairs (OUMWA) as end-of-service benefits or ESB for the retiring OFWs or for those whose contracts were terminated.

The audit body said the OUMWA, who is tasked to process and release the claims of the OFWs or the beneficiaries of the deceased OFWs, was only able to disburse P985,511,690.98 as of Oct. 31, 2016, leaving a balance of P112,200,850.22. x

The COA noted that the balance, which remains idle in the OUMWA bank account for more than ten years, has also earned an interest amounting P1,894,145.15 thus, bringing the total ESB balance to P114,094,995.37.

“Among the roles of the DFA in relation to its mandate to promote the rights and welfare of Filipino migrant workers is to facilitate the receipt and release of the end-of-service benefits (ESB) and other financial benefits due to the Filipino migrant workers or beneficiary of the deceased Filipino migrant workers,” the COA reminded the DFA.

The OUMWA explained that the non-release of the benefits was mainly due to the “use of substitute name of OFWs, failure to reach an amicable settlement among the adverse claimants, illegal/undocumented workers, incomplete documentary requirements, multiple marriages, illegitimate children, family disputes and discrepancies/inconsistencies between records.”

The OUMWA also said some deceased OFWs also had no identified beneficiary, while some beneficiaries were “unknown” or their whereabouts untraceable. The OUMWA said some recipients outside Metro Manila also failed to readily open a bank account “due to fund restraints”.

Transfer to OWWA

The COA noted that in its previous audit report, the audit team had already recommended to the DFA to consider transferring the funds to the disposition of the Overseas Workers Welfare Administration through execution of a Memorandum of Agreement.

The audit body pointed out that the OWWA “has the complete data on the OFWs and their dependents/beneficiaries/next-of-kin, hence, is capable of administering the death benefits/ESB of OFWs.”

“(DFA) management replied that despite OUMWA’s representations, the DOLE/OWWA was reluctant to accept the responsibility of receiving and releasing the ESB,” the report noted.

The COA recommended to the DFA to make a stronger representations to the OWWA and invoke the pertinent provisions of the “Joint Manual of Operations in Providing Assistance to Migrant Workers and Other Filipino Overseas” promulgated on Aug. 18, 2015.

The audit body pointed out that under Section 6 of the Joint Manual, the DOLE/OWWA was tasked “to render labor services with regard to death benefits, ESB, insurance and other benefits arising from the employer-employee relationship.”

The COA noted that the Joint Manual was signed by the DFA, DOLE, OWWA, Philippine Overseas Employment Administration, as well as the chairman and members of the House representatives Committee on Overseas Workers Affairs.

“The DFA should also consider the raising of the issue on the handling of ESB to the concerned Committees of the House of Representatives, if negotiation with the DOLE/OWWA proved futile,” the COA said.

Unused blood money

Meanwhile, in the same report, the COA said a total of P48,191,809.02 unused blood monies also remain idle in the DFA Foreign Service Posts (FSPs) bank accounts.

Based on the COA records, the blood monies included those deposited to the FSPs in Riyadh and Kuwait to save the lives of OFWs Joselito Zapanta and Jakatia Pawa, respectively, from the death sentence.

The family of Zapanta’s victim refused to execute an Affidavit of Forgiveness in exchange for blood money which led to his execution on Dec. 29, 2015. In Pawa’s case, goodwill money amounting P3,272,131.15 was paid to the victim’s family but they likewise refused to execute an Affidavit of Forgiveness. Pawa was executed on Jan. 25, 2017.

“With the execution of the two OFWs, the intended purpose of the blood monies could no longer be served, however, the unutilized funds remained deposited in the Posts’ bank accounts,” the report read.

Dormant bank accounts

The report also noted that several bank accounts of various FSPs, particularly in Japan, China and Myanmar are already inactive/dormant for several years.

The COA records show that the dormant bank accounts have a total balance of P87,957,405.54.

“Review of entries in the related bank statements showed that, except for the interest earned and bank charges, no other transaction was incurred for the above bank accounts for the last 5 to 11 years,” the report read.

“The idle bank deposits, if remitted to the National Treasury and DOLE, could have been utilized to finance other priority programs/projects of the national government,” it added.