COA flags OVP release of ₱3.4M to beneficiaries without project evaluation

Metro Manila, Philippines – Government auditors flagged the Office of the Vice President (OVP) for distributing at least ₱3.4 million in January to September 2024 to livelihood beneficiaries without a feasibility and viability evaluation of the project proposal. 

In its annual financial report for the OVP, the Commission on Audit (COA) said the “Mag Negosyo Ta ‘Day” program granted ₱1.92 million in financial aid to 128 people and ₱1.5 million to 10 organizations.

COA said the beneficiaries were qualified but proposals were “not evaluated” by the Department of Trade and Industry (DTI) and even the Philippine Deposit Insurance Corporation (PDIC).

“The feasibility and economic viability of the project proposals of the 138 economic beneficiaries both individuals and NGOs/CSOs (nongovernment organizations/civil service organizations) were not reviewed by PDIC and DTI due to absence of any evaluation or assessment report,” the auditors reported.

“No written agreement was prepared by OVP with the PDIC and DTI relative to their responsibility for the review of the project proposals of the beneficiaries and subsequent endorsement to the OVP,” COA added.

The commission said the program’s focal person said it “might be challenging to have the project proposals evaluated by another government agency” without a written deal. 

To address this, COA said the office revised manual guidelines in October to allow the OVP’s Special Projects Division to instead assess the viability of the individual and group applications. 

The report also noted that the office’s Special Projects Division staff launched a reorientation on the program’s manual of operations to the Satellite Office leads last February. It also said a project assessment tool was created to evaluate the proposals. 

State auditors also highlighted the transactions affecting the Welfare Goods Expenses account, calling out the OVP’s ₱110 million expenses amid “prevalence of deficiencies in the documentation in the distribution.”

Upon investigation, COA said the documents “were not submitted by the concerned office” and were not attached in files submitted to the accounting division. 

Newswatch Plus has reached out to the OVP for comment. 

Meanwhile, the auditors also flagged the Office of the President for failing to collect ₱14 million in overdue foreign travel reimbursements from other government agencies in foreign trips made from 2022 to 2024.

In response, Palace press officer Claire Castro said the office has already sent collection letters to the involved agencies that have yet to reimburse for the expenses.