COA wants probe into P1.2-B idle cash grants to 4Ps beneficiaries

The Commission on Audit (COA) has recommended an investigation into why almost three million accounts belonging to beneficiaries of the government’s Pantawid Pamilyang Pilipino Program (4Ps) have idle cash deposits totaling P1.252 billion as of the end of 2015.

“Examination of the cash card balances of beneficiaries’ accounts with the LBP (Land Bank of the Philippines) revealed that as of December 31, 2015, there are 2,990,229 accounts with unwithdrawn balances totaling P1,252,486,000 from 2008 to 2015,” the COA said in its annual audit report on the Department of Social Welfare and Development (DSWD).

The 4Ps, also referred as the Conditional Cash Transfer (CCT) program, is the flagship poverty-alleviation project of the administration of former President and incumbent Pampanga Rep. Gloria Macapagal-Arroyo.

The program was continued and widened during the administration of former President Benigno Aquino III. It has an allocated budget of P62.3 billion in 2015 to cover 4,436,732 household beneficiaries.

The beneficiaries of the 4Ps are enrolled under the cash card or ATM card payroll of Land Bank.

Based on the audit report recently published by COA on its website, the bulk of the accounts with unwithdrawn cash deposits were enrolled from 2011 to 2015, although there were also a few idle accounts that date back from 2008.

The COA records show that 88 percent or P1.1 billion of the unwithdrawn cash deposits belong to 79,530 accounts enrolled to the 4Ps from 2011 to 2015.

The COA report said these idle accounts have balances ranging from P2,801 to P102,2000 which “were not withdrawn from 30 to 2,190 days upon payout.”

The COA said this figure is “casting doubt on the eligibility of the chosen beneficiaries [of the 4Ps]” as the idle accounts only show that their owners “have no immediate need for the financial assistance.”

“The continuous non-withdrawal of the cash grants only shows that the holders do not need the financial assistance/cash grant and do not really belong to the poorest of the poor as well as may not be eligible to be a CCT beneficiary,” the COA report read.

The COA said this “defeat[s] the purpose of the 4Ps/CCT program to alleviate poverty by improving the health, nutrition, the education of the poorest families, homeless and indigenous people.”

“We recommend that the Secretary require the NPMO (National Program Monitoring Office) to conduct an investigation/re-assessment on the eligibility of concerned beneficiaries and make necessary actions based on the assessments,” the COA said.

The COA further noted that there were also 386,435 accounts with a total balance of P139.008 million which “have no date of last monetary activity” and yet were still included in the DSWD’s list of 4Ps beneficiaries as of the end of 2015.

“It is noteworthy that despite the accounts having no movement, and the constant report of the LBP to the DSWD for such occurrence, delisting of the accounts were still not made,” the COA report read.

In a random sampling conducted by the state auditors of 48 selected accounts with balances of P25,000 and above, the team found out that they have no monetary activity since April 2011 to as late as September 2015.

The COA said that despite the high balances of these accounts, the DSWD continued to deposit cash grants ranging from P500 to P3,600 in early 2016.

“It bears emphasizing that the cash grants are benefits given to poorest families, the homeless, and indigenous people who economic conditions are equal to or below the poverty threshold to augment their day to day expenses,” the COA reminded the DSWD.

In a reply to the audit findings the DSWD management informed the COA that it has already coordinated with Land Bank for validation and re-assessment of all existing cash card accounts “to identify accounts for closure.”

The DSWD further said coordination with Land Bank has also been made for proper disposition of the unclaimed cash grants such as return to the Bureau of Treasury or transfer to prepaid card accounts of other eligible beneficiaries. — BM, GMA News