OCD spent only P81M out of P466M cash donations for disasters since 2008 –COA

The Commission on Audit (COA) has questioned the Office of Civil Defense's (OCD) "very low” utilization rate of cash donations it received for disasters.

In a 2014 audit report published by COA on its website, it was revealed that since 2008, the OCD has received a total of P466.019 million donations for various calamities that hit the country.

The COA said that of this amount, only 17.39 percent or P81.068 million was spent by the OCD as of December 31, 2014.

“Utilization of the donations from foreign and local donors in the total amount of P81,068,471.49 was low, depriving the calamity victims of the much needed assistance to alleviate their difficulties,” the COA report said.

Moreover, the COA said the unutilized balances “were not returned to the Bureau of Treasury” contrary to a COA circular issued on April 15, 2014.

Based on Section IV.13 of COA Circular No. 2014-002, unutilized cash donations “shall be remitted to the Bureau of Treasury (BTr) if no condition to return any unused amount to the donor.”

The state audit body noted that the OCD still has a total of P384.95 million unused disaster relief donations being kept in its trust account with the Development Bank of the Philippines (DBP)

The COA said that balance of the donations being kept in OCD’s account with DBP has already incurred an interest of P1.709 million.

It said the biggest chunk of the donations amounting P137 million came from various government agencies and international organizations when super typhoon Yolanda (international name: Haiyan) hit the Visayas region in November 2013 and killed over 6,000 people.

The COA said of this amount of donation for the Yolanda victims, only P38.755 million was released by the OCD as of end of December 2014, leaving P98.24 million untouched more than a year after the super typhoon's onslaught.

Below is the complete list of the donations received by the OCD and the amounts that remain untouched as of the end of 2014, as noted in the COA report:

-- Typhoon Frank (June 2008) – total donations P26.26 million – balance P5.83 million
-- Flashflood in Cagayan de Oro/Gingoog/Iligan (Jan. 2009) – total donations P2.045 million – full amount intact
-- Tropical Storm Sendong (Dec. 2011) – total donations P126.843 million – balance P114.507 million
-- Tropical Storms Ondoy and Pepeng (Sep. 2009) – total donations P40.925 million – balance P36.143 million
-- Typhoons Pedring and Quiel (Sep./Oct. 2011) – total donations P16.784 million – balance P12.019 million
-- Typhoon Pablo (Dec. 2012) – total donations P102.315 million – full amount intact
-- Habagat flooding (Aug. 2012) – total donations P7.627 million – full amount intact
-- “various disasters” (undated) – total donations P1.039 million – full amount intact
-- Typhoon Maring (Aug. 2013) – total donations P45,216 – full amount intact
-- Zamboanga siege (Sep. 2013) – total donations P158,924 – full amount intact
-- Bohol Earthquake (October 2013) – total donatons 4.983 million – full amount intact
-- Typhoon Yolanda (Nov. 2013) – total donations P136.997 million – balance P98.242 million

Asked to explain the low utilization of donations received by its office, the OCD management, through a letter sent to COA, said it is barred by the rules from releasing financial assistance to claimants who cannot comply with documentary requirements.

The COA recommended the OCD to revisit its rules “for an effective administration of cash donations with focus on the concerns of the calamity victims.”

The COA also reminded the OCD to remit to the BTr all the unutilized cash donations unless there is an expressed condition by the donors to return the unused donations to them.

Based on Department of National Defense (DND) Memorandum Order No. 1 of 2005, all cash donations to the OCD shall form part of “calamity funds” that shall exclusively be used for “relief, rehabilitation, reconstruction and other works or services in connection with natural calamities, epidemics as declared by the DOH, as well as disaster resulting from unlawful acts of insurgents, terrorists and other criminals.” —KBK, GMA News