PHL Red Cross appeals for public support despite ‘malicious’ fund misuse claims

The Philippine Red Cross has appealed on the public to continue supporting the organization despite allegations of fund misuse hurled against its secretary general Gwendolyn Pang.

 

“Continued public support is vital at this time to sustain emergency relief and long term recovery efforts. The Red Cross remains firmly focused on alleviating the suffering of victims of this terrible tragedy,” PRC said in a press statement posted on its website Wednesday.

 

The organization said the allegations stemmed from “a long-running and malicious campaign orchestrated by disingenuous members of the Red Cross who have since been dismissed.” It said Pang is subsequently taking legal action against her accusers.

 

A news report by ABS-CBN's TV Patrol said former Red Cross official Rosa Rosal asked the group's board of governors in October to put Pang under preventive suspension while conducting an investigation into allegedly irregular transactions and requests for payment and disbursement of funds amounting to P200 million.

 

“The secretary general must be put under preventive suspension immediately or extend the suspension if necessary, in case the audit is not yet completed. This is to uniformly apply the rules and regulations governing employees and to preclude the possibility of exerting undue influence or pressure on the witnesses against her or tampering of documentary evidence on file,” she said.

 

Rosal based her complaint on the report of former Red Cross chief accountant Jeric Sian dated September 9, 2013. 

 

Among the alleged irregularities were the purchase of ambulance and equipment using Priority Development Assistance Fund of PRC chairman and former senator Richard Gordon; use of P26,750.15 from the Red Cross fund for food and drinks at her birthday party at the Sky Lounge of Diamond Hotel; use of PRC funds to pay the rent of parking space in her former condominium unit; and use of PRC funds to pay for her cellphone bill and wedding gift.

 

Rosal said these “were approved by top management without compliance of needed requirements and in violation to our existing financial policies and procedures and [despite] financial losses incurred by PRC.”

 

She asked for an external auditor to investigate the use of Red Cross funds.

 

In the same television report, the Red Cross said it already conducted an investigation into the matter.

 

The consolidated finding of the board of governor said reimbursing bills for work-related consumption is allowed. It said during those times, Red Cross officers had not been issued official mobile phones.

 

It added that Pang presented documentary proof that the parking fees she reimbursed were payments for the parking slot reserved for the PRC vehicle issued to her.

 

It also stated that based on available records, Pang only had P26,750 reimbursed. The money was used to pay for food and beverages for Red Cross volunteers and not for her birthday celebration, the Red Cross said.

 

“There are no provisions...which expressly prohibit the giving of customary gifts---to employees...during special occasions such as...weddings..the governance committee also believes that P9,000 [for] wedding gifts, by today's standards, is not excessive or wasteful..” according to the consolidated findings.

 

The Red Cross reiterated in the press statement that all of the allegations were rigorously investigated on two separate occasions in accordance with their rules and procedures relating to accountability and transparency.

 

“Following the investigation, Ms. Pang was fully exonerated and the Philippine Red Cross Governing Board has expressed its full confidence in her continued leadership of the organization,” it said.

 

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

 

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

 

It added the accusations have not only brought Pang personal distress, but also serve to belittle the efforts of the thousands of Red Cross volunteers from across the country currently engaged in humanitarian missions in response to Typhoon Yolanda. — Amita Legaspi/JDS, GMA News