Red Cross governors deny misuse of funds

MANILA, Philippines - Thirteen governors of the Philippine Red Cross (PRC) yesterday denied the allegations of its former chief accountant that the agency’s secretary general has misused some of the funds donated to the organization.

“There was no stealing of funds in Red Cross. There was no misuse by any officer, by any governor, by any individual,” said lawyer and PRC governor Lorna Kapunan during a press conference in Quezon City.

The press briefing was held more than a week after ABS-CBN News reported the supposed complaint filed by PRC governor Rosa Rosal, asking the board to investigate anomalous transactions involving some P200 million of the agency’s funds.

The report said Rosal’s complaint was based on a letter from former PRC chief accountant Jeric Sian, who questioned the alleged irregularities in various transactions entered into by PRC secretary-general Gwendolyn Pang.

Among the alleged anomalous transactions were the purchase of tarpaulins of former senator and PRC chairman Richard Gordon and procurement of whistles and other materials.

“Red Cross formed an investigating committee (to look into the charges),” Kapunan said.

Earlier, the PRC said it has investigated the allegations and that the board of governors has exonerated Pang and expressed full confidence in her continued leadership of the organization.

“Red Cross takes financial transparency extremely seriously and the organization’s accounts are regularly audited by a reputed international independent auditor,” it said.

“The ill-intentioned people behind this malicious campaign have, as a last resort, been attempting to use the media to discredit Ms. Pang,” it added.

The PRC said the issue stemmed “from a long-running and malicious campaign orchestrated by disingenuous members of the Red Cross who have since been dismissed.”

Rodolfo Reyes, secretary of the PRC board, maintained that the board had approved the transactions being questioned by Sian.

“He is a liar. And he should be stripped of his license to practice accountancy,” Reyes said, noting that Sian was fired not because of his allegations against the PRC but because of his failure to fulfill his functions as the agency’s chief accountant.

PRC elections

According to Reyes, the allegations of misuse of donations came a month before the PRC elections in January.

He said this might be the reason why allegations such as the tarpaulins bearing the images of Gordon are being highlighted in news reports.

The PRC governors defended Gordon, saying it was the organization that used the former senator and not the other way around. They said donations to the agency increased after Gordon took over the leadership of PRC.

Rosalind Wee, another PRC governor, noted the possible effects of the issue on the organization as donors might think twice before donating to the PRC. 

“If we don’t get donors, if we don’t get confidence from our donors, then we are all dead… We are doing this for the Filipino people,” she said.

They assured the public that no misuse of funds is happening within the PRC.