P15 billion 4Ps funds unliquidated — COA

MANILA, Philippines — The Commission on Audit (COA) has called out the Department of Social Welfare and Development (DSWD) over P15 billion funds intended for beneficiaries of the Pantawid Pamilyang Pilipino Program or 4Ps, which remain unliquidated.

In its 2017 audit report, the COA said the DSWD transferred P183.357 billion to the Land Bank of the Philippines for over-the-counter payments of 4Ps beneficiaries from 2008 to 2017.

Of this amount, only P172.610 billion was liquidated as of Dec. 31, 2017. Of the amount, only 43.32 percent or P4.655 billion pertains to funds transferred to Landbank from 2008 to 2016.

The COA said non-liquidation of the funds is a violation of the memorandum of agreement signed between the DSWD and Landbank, which states that liquidation documents should be submitted within five working days from the last date of scheduled payout.

Non-adherence to the liquidation provision “resulted in  accumulation of funds transferred to Landbank, which may become idle funds,” the audit agency said.

“It is worthy to mention that the amount transferred is for immediate release to 4Ps beneficiaries to ensure that their immediate financial needs are addressed. The failure of Landbank to release these benefits through the conduits... is tantamount to depriving them of the needed resources to get through their daily needs,” the COA said.

In a comment incorporated in the report, the DSWD said the unliquidated balance was only P9.881 billion as of last February.

The DSWD said P3.789 billion pertains to “past due balance” or the amount transferred to Landbank from 2008 to 2016.

Unremitted cash grants

The COA also called out the DSWD over its failure to return to the Bureau of Treasury (BTr) a total of P5.385 billion refunded by Landbank to conduits for unclaimed cash grants of 4Ps beneficiaries.

Of the amount, P4.099 billion was refunded by Landbank conduits from 2013 to 2016, but remains unremitted to the BTr.

The DSWD’s failure to return the unused fund was in violation of Section 88 of the 2017 General Appropriations Act, which states that “unexpended balances of appropriations... shall be reverted to the general fund at the end of the validity of appropriations...and shall not thereafter be available for expenditure except by subsequent legislative enactment.”

“Failure to claim or collect the cash grants as soon as these are available for a long period of time and for no valid reason means that they don’t need them. Accordingly, these should rightfully be returned to the coffers of the government,” the COA said.

The COA said P1.323 billion worth of cash grants were also  unwithdrawn by 4Ps beneficiaries for 30 days to 2,190 days upon payout.

 The agency said this shows there was “no immediate need” for the financial assistance and cast doubt on the eligibility of the beneficiaries.