Malacañang insisted that the Philippine Red Cross can be audited by COA.
On Tuesday, Malacañang insisted that the Philippine Red Cross, a non-government organization (NGO), can be audited by the Commission on Audit (COA).
Citing Article 9 of the 1987 Constitution, Presidential spokesperson Harry Roque said during the Presidential press briefing that the Commission on Audit can conduct a post-audit on “non-governmental entities receiving subsidy or equity, directly or indirectly, from or through the government”.
He also noted that Commission on Audit Circular No. 96-003 allowed government or any proper authorities to request for “special audits of non-government organizations”.
“May basehan ba ang sinasabi ni Presidente na humingi sa COA ng special audit para sa PRC? Meron po,” Roque said.
Earlier, President Rodrigo Duterte demanded a full audit report on the Philippine Red Cross as he accused PRC Chairman Senator Richard Gordon of using the organization’s funds for his electoral campaigns.
Senator Gordon earlier dismissed the accusations while the Commission on Audit had said before that it didn’t have the jurisdiction to audit the non-government organization.
Malacañang also insisted that COA should look into PRC’s memorandum of agreement (MOA) with Metro Manila mayors and the Philippine Health Insurance Corporation (PhilHealth) on RT-PCR testing.
“Ang advance payment clause sa MOA ay klarong paglabag sa PRC charter and Bayanihan to Heal as One Act, kung saan reimbursement in the distribution of goods and services ang pinapayagan,” Roque said.
Section 88 of Presidential Decree No. 1445 or the Government Auditing Code of the Philippines stated that the government wasn’t obliged to make an advance payment for services not yet rendered.
Meanwhile, Republic Act No. 11469 or the Bayanihan to Heal as One Act provided that the government can partner with the Philippine Red Cross but subject to reimbursement.
Moreover, Roque said that the Philippine Red Cross has not submitted any annual report on its activities and financial status to the Office of the President since 2016, as provided by Republic Act No. 10072 or the Philippine Red Cross Act.
The law provided that the non-government organization needed to submit an annual report to the President about its activities and financial condition every year.