MANILA, Philippines - The Commission on Audit (COA) is urging the Department of Agrarian Reform (DAR) to scrap its P70-million agrarian reform education program.
The COA said the P70.869 million allocated for the Fund for Agrarian Reform Education (FARE) has not been utilized and no programs or projects were implemented while the money remained unused for more than five years.
State auditors revealed the fund was placed in a Land Bank of the Philippines (LBP) high-yielding security savings account with a 91-day maturity date at 2.5 percent interest rate per annum.
“Unutilized funds for more than five years of FARE consisting of the principal and its accumulated interest earnings have increased to P70,869,533.72 as of yearend,†the COA report said.
The audit team that reviewed DAR’s finances added that for several years, no annual work program and/or a work and financial plan was prepared.
The COA stressed the money allocated for the FARE is not being put to productive use, thereby depriving intended beneficiaries.
Since the government could use the funding for other programs or projects, COA asked Agrarian Reform Secretary Virgilio de los Reyes to review the necessity of continuing the program or otherwise remit the funds to the National Treasury.
“No activities were undertaken to achieve the objectives of the program to the disadvantage of the intended beneficiaries,†state auditors noted.
In a 2011 value for money audit report released recently, COA said Fund 401 or the FARE is the permanent trust fund created under the Exchange of Notes between the US and Philippine governments signed on March 21, 1972.
The money is supposed to be used for personnel and clientele development and agrarian research and continuing evaluation of the agrarian reform program.
It was also intended for the improvement of training centers for continuing education and the establishment and operation of a Southeast Asia library on agrarian reform.
The COA said the inactivity of FARE for more than five years had defeated the very purpose of the program in assisting in the financing of its approved educational programs and projects.
“This could have been expended to support a noble program of the government and if found to be no longer eligible for the purpose it was created, and without legal impediment could have been deposited/reverted to the National Treasury to maximize the use of scarce government resources by minimizing government borrowings and rationalizing cash management,†the audit team said.