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LGUs leave disaster funds unused – COA


The Philippines is one of the most disaster-prone countries in the world, but local government units (LGUs) tend to leave their calamity funds unused, a recent Commission on Audit (COA) report has revealed.
 
COA’s assessment on Philippine disaster management practices in 2013 – the year Typhoon Yolanda (Haiyan) struck central Philippines – showed low utilization rates of disaster funds by LGUs across all regions.
 
“It is interesting to note that despite the inadequate resources of some LGUs due to their small budget, local disaster risk reduction and management funds are usually unutilized or underutilized,” the audit report made available to the public this month stated.
 
COA traced the tendency not to use disaster preparedness funds to bureaucratic issues.
 
“We also noted that some LGUs cut back on spending the local disaster risk reduction and management funds for they are too afraid that such expense may not be allowed by Department of Budget and Management or disallowed by COA,” the audit report said.
 
The commission proposed that laws on disaster management and fund disbursements be reviewed “to better adapt to the LGUs’ needs given their different experiences in disaster response and mitigation.”
 
Last year, the United Nations ranked the Philippines as the second country – after Vanuatu most – vulnerable to hazards and effects of climate change
 
Around 20 weather disturbances enter the Philippine area of responsibility every year.
 
In November 2013, Typhoon Yolanda – one of the to hit land in recent history – devastated much of  central Philippines and left 6,300 people dead and displaced over 1.4 million families.
 
‘Largely reactive’
 
In the same report, the commission noted the national government tends to allocate more funds on disaster response, not on preparedness.
 
“The Philippine public spending on disaster management is characterized as largely reactive as shown by the huge balances of calamity funds before the occurrence of a disaster and the corresponding increase in expenditures during disaster response,” the report read.
 
The commission cited the 2013 national budget, saying 54 percent of disaster risk management funds went to response and rehabilitation and 46 percent to mitigation and preparedness.
 
As for the LGU allotments, the commission observed an “imbalance between available resources and risk exposure” – meaning more disaster-prone provinces do not receive more funds for calamities.
 
This kind of spending “leaves the country more vulnerable and less prepared to handle disasters,” the commission noted.
 
Lack of transparency
 
The commission observed a lack of transparency among government agencies on the use of disaster funds.
 
“An indispensable precondition to improve aid effectiveness is greater transparency and better information dissemination. While there is a law that enables the sourcing and utilization of disaster funds, compliance to the said provision is low,” the report read.
 
The commission admitted it is “completely unaware” of the amount of private funds channeled through private institutions.
 
In response such issues, COA issued a new accounting guide requiring government agencies to submit a report on disaster funds and relief goods to the Office of Civil Defense.
 
The audit report proposed that private entities that received extensive funding from international and local donors be asked to account for these funds. – VS, GMA News
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