MANILA, Philippines – State auditors have reminded the Social Housing Finance Corporation (SHFC) to strictly disburse funds as outlined in its mandate after discovering that greater than P3 million in monetary help given to weak beneficiaries and contractual staff didn’t fulfill authorized necessities.
In a 2020 audit report, the Commission on Audit (COA) told the SHFC to submit the authorized foundation for its disbursement of P 1.508 million for member beneficiaries and P 1.526 million for institutional contract of service staff, which got as COVID-19 monetary help throughout the lockdowns in 2020.
COA mentioned that the grant of money assist contravenes its mandate as the lead agency for implementing social housing packages for low-income earners within the formal and casual sectors.
“The grant of financial assistance totaling P 1.508 million to 887 vulnerable member beneficiaries during the enhanced community quarantine is without legal basis and runs counter to the mandate of the SHFC as well as to the Philippine Commission for Women memorandum circular 2020-03 dated April 27, 2020, resulting in the overlapping of functions with other government agencies tasked to respond to the crisis under the Bayanihan to Heal As One Act and Bayanihan to Recover as One Act,” a 2020 audit report on the SHFC learn.
Attached to the Department of Human Settlements and Urban Development, the SHFC administers the Community Mortgage Program and the Abot-Kaya Pabahay Fund Program, that are amortization help and developmental financing packages, respectively.
In 2020, the SHFC disbursed P 1.508 million in help to 887 member-beneficiaries as money help to owners associations and livelihood help, of which P 1.408 million was liquidated as of December 31, 2020.
The SHFC additionally authorized a memorandum of its Gender and Development (GAD) officer proposing emergency reduction operations, during which the SHFC will put aside P 2 million from its GAD funds to cowl P 1,000 money help for every weak beneficiary.
It was to “cushion the impact brought about by the temporary loss of earning capacity because of the ECQ” applied in April and May 2020 and to complement meals packs from native authorities items given to poor households.
This is aside from giving P 10,000 in livelihood monetary help to member-beneficiaries who misplaced their jobs. Around P 978,000 was allotted beneath the capability constructing/livelihood program.
The COA mentioned the “cash donation and livelihood financial assistance/capacity-building expenses granted to the member beneficiaries have no legal basis and are not in accordance with the mandate of the SHFC.”
The SHFC was told to submit the authorized foundation for the monetary help given to member beneficiaries, “otherwise the transaction is considered irregular in the absence of legal authority.”
The COA additionally reminded the state-run company to disburse funds from the GAD price range in accordance with its allowed makes use of relating to gender and improvement packages.
In response, the SHFC mentioned the help is a part of its capability constructing and livelihood program and is a “specific corporate strategy in helping underprivileged communities to have better living conditions.”
The disbursement was in accordance with its submitted GAD plan and price range beneath client-focused actions. The emergency reduction proposal meant for meals packs, protected ingesting water and hygiene kits was “shifted into cash assistance due to procurement and mobilization constraints.”
In the identical audit report, the COA additionally referred to as out P 1.526 million in COVID-19 monetary assist granted to 454 staff employed via the institutional contract of service.
State auditors mentioned the money help “is without legal basis” as it’s opposite to a joint round of the Civil Service Commission, COA and Department of Budget of Management.
The 454 staff had been from the DBP Service Corporation and DBPSC Security Services Inc, which had been the impartial contractors and with SHFC as the principal.
“The payment was made directly to the ICOS employees despite the fact that there is no employer-employee relationship between SHFC and the personnel of the DBPSC and DBPSCSSI, The disbursement voucher is in the name of the Land Bank of the Philippines, and the bank directly credited the payment to the individual account of the personnel of the ICOS,” the COA famous.
State auditors harassed that for the reason that board left it to the SHFC to approve the monetary help, the approval in writing ought to have been included with the disbursement voucher.
The audit group added that the 454 staff acquired their salaries in full throughout the ECQ final 12 months when the SHFC applied a work-from-home and skeletal drive association.
The SHFC was told to submit the authorized foundation for the monetary help, or “otherwise refund the financial assistance granted to them in the absence of legal authority.”
The agency mentioned the money assist was “justifiable” to assist the workers amid the pandemic, and that it is going to be thought of a “donation” and its approval is inside the SHFC president’s authority.
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