Stealing from and through foundations, NGOs

Where is the P4.4 million?

That question went viral on social media over the past couple of days as kibitzers joined the fray that erupted over the P4.4 million in missing funds of the UP College of Mass Communication Foundation Inc. (UPCMCFI).

As an alumna of the UPCMC, formerly the UP College of Mass Communication and now called the UP College of Media and Communication, I was shocked and appalled by what happened.

The issue really is that somebody, perhaps in cahoots with one or two accomplices, stole funds meant for the UPCMCFI, a non-profit organization that supports programs for the UPCMC community.

The problem came into public view when some members were prevented from attending the foundation’s general assembly on June 22, 2026.

A video taken by the college paper Tinig ng Plaridel caught Broadcast Communication professor Cecile Ilagan and UPCMCFI acting president Malou Choa-Fagar engaged in a tense confrontation over the missing funds.

Unfortunately, the video showed only an incomplete picture, making it appear that either Choa-Fagar was guilty or was covering up the crime, and netizens were quick to embrace this narrative. This is the concerning thing about social media – we too often get an incomplete picture, yet those who are quickest to judge and raise the loudest uproar are those who don’t seem to care about the truth.

So what really happened?

To clear the air, the UPCMCFI issued a statement.

It said that its Board had “discovered that there was misappropriation of funds by individual(s) after an external audit covering the period of 2021 to 2025, which was initiated from August 2025 to January 2026.

“The total missing P4.4 million in UPCMCFI funds was taken by certain individual(s), and consisted of P1.4 million in remaining funds from different closed projects and P2.9 million in operating and institutional funds of UPCMCFI that are earmarked to provide financial support to the UPCMC staff and the College.

“The ex-officio vice chair and president disassociated herself from the Foundation on June 3, 2026, via a now-deleted Facebook statement. In this regard, UPCMCFI trustee Malou Choa-Fagar graciously accepted the appointment to preside at the June 22, 2026 General Assembly.

“Contrary to misleading statements on social media, Trustee Fagar never had access, possession or control of the funds in question and is innocent of the allegations made against her on social media.

“Even before the GA, the Board took action and approved resolutions to engage legal counsel to pursue appropriate remedies against the person(s) concerned.

“The UPCMCFI has built a strong case over the past months and is currently in the process of filing cases to recover the funds. Case details and evidence cannot be released so as not to compromise legal strategy or violate court rules.”

UPCMC, for its part, issued a separate statement urging the Foundation to provide copies of the audited financial statements, audit reports and other relevant financial reports for the years 2016 to 2025 and to provide a complete accounting of funds received, held, disbursed and charged with administrative fees in relation to UP CMC projects and engagements, including those of the Department of Broadcast Communication, Department of Communication Research, UP Film Institute, Department of Journalism and the Graduate Studies Department.

For sure, the UPCMCFI needs to do a lot of explaining and reexamining of its systems and staffing so that its stakeholders may know where every peso went.

Bigger problem

But the issue is also a symptom of a bigger problem – stealing from foundations, non-profit organizations and even alumni associations.

Even some members of the board of directors of posh country clubs and homeowners’ associations have become notorious for the embezzlement of funds.

It is disheartening. Maddening, even.

As Emmanuel Pelaez, then minister of state for foreign affairs, uttered in 1982 to Brig. Gen. Tomas Karingal, “What is happening to our country, General?”

This is a question that may well capture the sentiment today.

What has become of this country, where individuals have no qualms about stealing money that does not belong to them?

Foundations are non-profit, and staff members are usually volunteers or receive only an honorarium because they supposedly believe in the advocacy of the foundations they serve.

Aren’t foundations usually created with the most noble of intentions – charitable work and serving the marginalized? Aren’t foundations supposedly there to fill gaps the state cannot provide?

And yet, unscrupulous individuals steal their funds.

In fact, some even set up foundations and organizations to steal and launder money.

Remember how convicted plunderer and scammer Janet Lim Napoles established a network of more than 20 fake NGOs to siphon public funds?

The Securities and Exchange Commission must tighten its oversight of foundations. It must ensure, first and foremost, that the funds are used for their stated charitable purposes, that these organizations are regularly and properly audited and that they are not used to launder dirty money.

Going back to the UPCMCFI case, I’m still shocked and sad, as a CMC alumna, that this could happen so close to home.

I hope appropriate cases will be filed, the money will be returned and proper safeguards will be put in place to prevent a recurrence of this kind of crime in the future.

There really must be a special place in hell for those who use foundations or charitable institutions to enrich themselves. In a way, they are even worse than the thieves in government.

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 @eyesgonzales. Column archives at EyesWideOpen on FB.