COA can't audit Philippine Red Cross, says ex-OGCC head

Adrian Ayalin, ABS-CBN News

Posted at Sep 03 2021 10:03 AM

Former Office of the Government Corporate Counsel chief Rudolf Philip Jurado on Friday criticized his former boss President Rodrigo Duterte for asking for an audit report on the Philippine Red Cross.

In a Facebook post, Jurado said the President should have known that the Commission on Audit cannot look into the funds of the PRC, which is a non-government agency.

“You are a fool, Mr. President. You are a lawyer and you should know that COA cannot (and has no power to) audit Red Cross,” Jurado said in his FB post. 

Jurado was fired in 2018 for supposedly overstepping the bounds of his authority for the grant of a casino permit but he denied any irregularity involving his legal opinion.

Meanwhile, former Commission on Audit commissioner Heidi Mendoza also confirmed the Philippine Red Cross may not be audited as it is a non-government institution. However, PRC contracts with government agencies can be scrutinized. 

"Bagaman at hindi ina-awdit ng COA ang Red Cross, may ilang operation nito ang pwedeng tingnan, kunyari 'yung contract nito with government agencies, in which case yung government funds lang ang sakop at sa government agency lang kung saan nanggaling ang pondo pwedeng pumasok ang auditors,” Mendoza said.

The former COA commissioner also said that it is worth noting that the PRC Chairman, Senator Richard Gordon, is a public official.

“Sa isang banda, may katwiran din ang humihingi ng awdit. Ang head ng Red Cross ay isang senador na kasali sa pagbusisi ng budget ng iba’t ibang ahensya ng pamahalaan at sa masusing pagsusuri ay pwedeng pag-simulan ng conflict of interest,” Mendoza said.

In the end, Mendoza noted the importance of accountability in government.

“Kung saan panalo ang bayan, duon tayo. Hindi ito panahon ng pagalingan o pasikatan. Ito ay panahon ng pagtatampok sa pananagutan!” she said.

On Thursday, President Rodrigo Duterte said he wants the Commission on Audit, an independent constitutional body, to look into the finances of the Philippine Red Cross, a non-government humanitarian organization.

"Gusto ko makita 'yong audit talaga na totoo ng Red Cross. And maybe I can. I will demand, the executive department will demand that we be furnished a copy of your audit taken by COA and COA to give us the copy so we can review also what you have audited at tingnan namin kung tama o hindi. Mas mabuti na 'yang gano'n," the President said during a recorded public address aired Thursday night.

(I want to see the audit documents of Red Cross. And maybe I can. I will demand, the executive department will demand that we be furnished a copy of your audit taken by COA and COA to give us the copy so we can review also what you have audited and we can see if there's something wrong. That will be better.)

"Let us be open to everybody. You open your books, and I open mine, and you can read all that is entered there, and I also examine what you have done so it will be a fair scheme for everybody," he added.

According to Republic Act 10072, or the Philippine Red Cross Act of 2009, the PRC is "recognized as the voluntary, independent and autonomous nongovernmental society auxiliary to the authorities of the Republic of the Philippines in the humanitarian field."

It is also provided in the law that the PRC should "submit to the President of the Philippines an annual report containing its activities and showing its financial condition" at the end of every calendar year.

In a circular released in 1995, the COA said it can conduct special audits on NGOs "upon request by proper authorities or as determined by the Chairman."

A quick search on the website of COA yielded no reports on the PRC so far.

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