From the Wife of an OFW - An open letter

From: Ma. Josefa Paras [mailto:mjrparas@yahoo.com]
Sent: Thursday, October 11, 2007 9:45 PM
To: hparas@ctjv.com
Subject: From the Wife of an OFW - An open letter

Sa mga kinauukulan:

Nung isang gabi, aking narinig sa isang pambalitaang programa sa telebisyon ang balitang kaya daw hindi umuunlad ang mga pamilya ng OFW ay dahil maluluho ang pamilya ng OFW. Palagi daw naggo-grocery at nagmo-mall. Dalawang beses daw sa isang lingo kung kumain sa labas. Nag-isip ako at nagtanong sa sarili."talaga?"

Ngayong gabi lang, nasaksihan ko ang balita sa telebisyon na nagsasabing muling sumadsad ang palitan ng piso sa dolyar sa pinakamababang antas nito: P44.05. Sinasabi rin na tinatayang sasadsad pa ang halaga ng dolyar sa pagdating ng Disyembre sa kadahilanang babaha ang padala ng mga OFW.

Sinasabi ng gobyerno, ito raw ay magandang balita. Ang paglakas daw ng piso ay nangangahulugan ng pagbuti ng ekonomiya ng bansa. Alam ninyo, wala naman kaming magagawa kung sumadsad ang halaga ng dolyar e. Hindi rin naman kami against sa pag-unlad ng ekonomiya ng Pilipinas. Kaya lang, bakit ganun? Bakit hindi naming nararamdaman na umuunlad nga ang ating ekonomiya?

Kagabi din, ibinalitang tataas ang presyo ng asukal bago mag Undas. Tinatayang aabot na hanggang Disyembre ang mataas na presyo nito. Teka, kala ko ba bumubuti ang ekonomiya natin? Parang kailan lang, tumaas ang presyo ng bigas, ganun din ang petrolyo? Kung bumubuti ang ekonomiya ng bansa, bakit hindi naibababa ang presyo ng mga pangunahing bilihin? Bakit sa halip na bumaba ang presyo ng mga produktong karaniwang pangangailangan ng pamilyang Pilipino,patuloy pa ang mga ito sa pag-taas? Pakisagot nga kaming mga pamilya ng OFW?

Sabi ng gobyerno, ang mga OFW daw ay ang mga bagong bayani ng bansa. Sila ang ating main export. Dahil sa kanila, nabubuhay ang ekonomiya ng bansa. Ngunit sa balitang "bababa ang palitan ng dolyar hanggang Disyembre dahil sa mga padala ng mga OFW", hindi ba ito ay malinaw na pang-gagatas sa kanila? Mga walang utang na loob! Ginagatasan ninyo ang mga bayani ninyo!

Alam ninyo, okay din lang naman sa kanilang mga OFW na gatasan kung makikita at mararamdaman din lang naman nila ang pag-unlad ng bansa. Pero kung ganitong ginagatasan na sila, niloloko pa.aba, teka! Sino ba talaga ang nakikinabang dito? Akala ba ninyo e pinupulot lang nila ang perang ipinadadala dito para kotongan ninyo? Makunsyensiya naman kayo! Ang kapalit nyan ay walang tigil na trabahong hindi iniinda ang sakit ng katawan sa pagod, mga masasakit na salitang pinagtitiisang pakinggan, paglunok ng kahihiyan at prinsipyo, malalamig na gabing ang kapiling lang ay larawan ng kanilang minamahal, pagsalang ng pisikal na katawan sa napakalamig o napaka init na temperatura. Lahat ng klaseng pag-titiis.iyan ang katumbas ng halagang ipinadadala ng mga OFW dito.iyan ang halagang ngayon ay pinagbabalakan ninyong pagsamantalahan.

Nasaan ang pagpapahalagang para dapat ay sa kanila at sa kanilang pamilya? Sa aming mga pamilya ng OFW, okay lang. Sabi nga ng iba, mas nakahihigit kami ng pamumuhay kaysa sa mga minimum wage earners na nagta-trabaho dito sa Pilipinas. Nakakaluwag kami sa pamumuhay. Nabibili naming ang aming gusto higit pa sa aming pangangailangan. Pero alam ninyo, parang pareho din.

Ang minsan naming pagsasaya, tulad ng pagkain sa labas, panonood ng sine, paglilibang, at pamimili, may kaukulang tax ding 12% na napupunta sa gobyerno. Minsan lang naming itong gawin, babalik din kami sa pamumuhay ng pangkaraniwang minimum wage earners dito sa Pilipinas. Bibili pa din kami ng bigas, gas, asukal, gatas, noodles, tinapay, tuyo, gulay, karne, sabon, at iba pa. Gagamit pa din kami ng kuryente at tubig. Sasakay pa din kami sa mga pampublikong sasakyan. Magbabayad pa din kami ng tuition fee sa paaralan. At ganun din ang singil sa amin sa mga pagamutan kung kami ay magkakasakit. Wala naman kaming espesyal na pribiliheyo e.

Ang sabi ninyo, maluluho kaming pamilya ng OFW. Hindi kami maluluho. Kino-compensate lang naming ang aming pangungulila sa aming mahal sa buhay. May karapatan kaming gawin ito ayon sa aming kagustuhan. Hindi ba't nakikinabang din naman kayo kapag kami ay naglilibang dahil sa laki ng tax na ipinapataw ninyo?

Sa baba ng palitan ng piso sa dolyar, nagiging halos pareho lang ang kita kung doon man sa ibang bansa maghanap buhay o dito sa Pilipinas. Ang kaibahan, mas madaming oportunidad ang naibibigay ng ibang bansa kaysa dito sa ating bansa. Paano namang magkakaroon ng magandang oportunidad dito, e sa gobyerno pa lang, wala nang inatupag kundi ang sarili nilang kapakanan. Nagtatalo-talo dahil naglalamangan sa ipinapasok sa kani-kanilang mga bulsa.

Hoy, mga walang kunsyensiya, pera naming mga mamamayan ang ibinubulsa ninyo! Patunayan ninyong lumalago ang ekonomiya at papayag kami sa pagbaba ng halaga ng dolyar. Patunayan ninyo! Utang ninyo yan sa mga mahal namin sa buhay na nagpapakamatay sa hirap sa ibang bansa. Kung hindi man, ilabas ninyo kung sino ang nakikinabang sa kawalanghiyaang ito.

Madami na kaming sama ng loob sa inyo. Sana naman, bigyan ninyo ito ng karapatang pansin.

Dapat mag-kaisa na tayo, ibangon natin ang pambansang atin. Peoples power ang ating kailangan, iligpit natin itong mga buwaya , mga magnanakaw, lalaong lalo na itong gobernong Arroyo na puro pamdarambong, pag-sisinungaling, pamdaraya, pagnanakaw.

Nandyan na ang GTE BROADBAND DEAL, MACAPAGAL BOULEVARD,JOSE PIDAL, at kong ano-ano pa, mga hinayupak na magnanakaw na dapat ibitay na patiwarik at pakagat sa langgam, para unti-unti nilang marasanan ang paghihirap ng ating kababayan lalong lalo na tayong mga esposa ng mga OFW.

Thanks & Best Regards

Edison A. Samonte

Sr. Electrical Inspector

E/W Pump Station 6 Area II

Tel. No. 03-5749209 ext. 138

Cel. No. 0568944765

The ZTE cast of characters: Loser, husband, political foes and deputies

KAREN TIONGSON-MAYRINA
GMA News Research

It could well be a scandal waiting to happen.

The usual suspects, in a manner of speaking, are there: on one hand, a losing bidder and an opposition leader taking advantage of his parliamentary immunity through a fiery privilege speech; on the other, a host of powerful men and political lieutenants all connected to the President.

But what makes the national broadband network deal most disturbing are two firm facts.

For one, this is the second big controversy to link and drag down President Gloria Macapagal Arroyo and Commission on Elections Chairman Benjamin Abalos.

The first, of course, was the “Hello, Garci" wiretapping scandal, at the time in 2005 the most serious political crisis to visit the Arroyo administration.

For another, the national broadband network deal seems to be a harbinger of what could be an imminent decline of the supposedly formidable pro-Arroyo political coalition.

Abalos, supposedly the advocate of the winning bidder, is cast against fellow Lakas-CMD stalwart and Arroyo ally, Speaker Jose de Venecia Jr.

The speaker’s son, Jose “Joey" de Venecia III, heads the firm that lost the bid.


WHISTLEBLOWERS

Jose de Venecia III

- A son of House Speaker Jose de Venecia, he is the majority shareholder of Amsterdam Holdings Inc. AHI submitted an unsolicited proposal to DOTC on the NBN project.

In a letter dated October 17, 2006, Secretary Romulo Neri, then director-general of the National Economic and Development Authority (NEDA) had conveyed his support for AHI’s proposal for the NBN. Neri had served earlier as head of the Congressional Planning and Budget Office (CPBO) under Joey’s dad, Speaker De Venecia.

- In a nine-page affidavit dated September 10, 2007, Joey de Venecia said Comelec Chairman Benjamin Abalos offered him $10 million “in exchange for AHI’s backing off and withdrawing completely from the NBN project." Abalos, he said, will be getting $130 million.

- Before a Senate hearing on September 18, 2007, Joey de Venecia said First Gentleman Jose Miguel Arroyo personally told him to “back off" from pursuing the NBN project.

- Speaker De Venecia is secretary-general of the ruling Lakas-CMD, while President Arroyo heads the KAMPI (Kabalikat ng Malayang Pilipino) party that is allied with Lakas-CMD.

Minority Leader Carlos Padilla (Lone District, Nueva Vizcaya)

- In a privilege speech on August 29, 2007, Padilla said Abalos helped ZTE bag the $329-million contract. He said that weeks before the contract was signed, Abalos played golf with ZTE executives in Mandaluyong City, where he once served as mayor. Padilla said ZTE paid for Abalos’s unofficial trips to China.

- It is not the first time Padilla had exposed an allegedly anomalous government deal. In February 2003, Padilla had delivered a privilege speech questioning the government’s importation of 600,000 metric tons of “rotten" rice from India. The P9.5-billion contract was won by Kishore Hemlani, who is said to be close to First Gentleman Jose Miguel Arroyo.


BROKERS?

First Gentleman Jose Miguel Arroyo

The NBN deal is at least the ninth major controversy to hound the First Gentleman, over the last six years of the Arroyo presidency.

He had also been implicated in the following transactions:

1. He allegedly received a P50-million bribe for the President to recall her veto of the franchise bills of the Philippine Communication Clearinghouse and APC Wireless Interface Network in 2001.

2. He allegedly used PCSO funds to bankroll the campaign of certain senatorial candidates in the 2001 elections and to bribe the media.

3. In 2003, his name surfaced when one of his friends, Kishore Hemlani figured in the contract involving the importation of P9.5 billion worth of rotten rice from India.

4. In 2003, Sen. Panfilo Lacson accused him of maintaining the secret "Jose Pidal" bank account to launder money.

5. He stayed in a $20,000-a-night MGM Grand Villa in Las Vegas, Nevada, during the Pacquiao-Morales fight in March 2005. Arroyo’s camp said the accommodation was complimentary and not paid for by public funds.

6. In April 2005, a police official accused him, his brother Rep. Ignacio “Iggy"Arroyo and son Rep. Jose Miguel Arroyo of receiving jueteng bribes. The First Gentleman denied this.

7. His close friend and fellow Makati Rotarian Agriculture Undersecretary Jocelyn “Joc-Joc" Bolante was accused of diverting agricultural funds to the 2004 electoral campaign of President Arroyo.

8. Then opposition Rep. Alan Peter Cayetano exposed in August 2006 that a member of the Arroyo family maintained banks accounts in Germany amounting to hundreds of millions of dollars. Mr Arroyo flew to Germany later to secure a certification from the bank to disprove Cayetano's claims.

Comelec Chairman Benjamin Abalos

- Abalos denied lobbying for the ZTE deal supposedly in exchange for money or sexual favors but admitted that he knows some ZTE officials, as they are golf buddies. Abalos acknowledged as well that he made four trips to China.

- Abalos was chair of the Comelec when it got embroiled in the “Hello, Garci" scandal — the alleged wiretapped conversations between President Arroyo and then Comelec Commissioner Virgilio Garcillano, on rigging the results of the 2004 elections.

- Abalos was Comelec chair when the poll body approved the anomalous P1.3-billion contract with the Mega Pacific Consortium for the purchase of automated counting machines. The Supreme Court voided the contract in January 2004.

- PCIJ reported that Abalos went on a spending spree shortly after assuming the Comelec chairmanship: he authorized a performance incentive pay equivalent to a month’s salary for the poll body’s 5,200 personnel and approved the purchase of seven new cars for all the commissioners.

DOTC Secretary Leandro Mendoza

- Mendoza and ZTE Corp. Vice President Yu Yong signed the US$329.5 million contract for an NBN on April 21, 2007. President Arroyo herself witnessed the signing in China. The deal is one of “five landmark economic agreements" between the Philippines and China.

- The Senate summoned Mendoza in September 2005 during a probe of the $503-million Northrail project funded by a loan from the Chinese government

- President Arroyo appointed Mendoza as chief of the Philippine National Police a few months after she assumed the presidency. He is a member of the PMA Class 1969.

- Soon after his police service stint, Mendoza was one of the retired generals appointed to government posts by Arroyo.


Former NEDA Director-General Romulo Neri

- Based on the draft minutes of the Special Joint ICC-Cabinet Committee and Technical Board meeting on March 26, 2007:

- Neri expressed concerns about the terms and conditions of the proposed loan agreement. He noted that the terms are not as friendly as the other government contracts with China such as the Northrail and Cyber Education Project and are “actually almost commercial."

- Neri pointed out that the government will not benefit much from the purported savings from Internet connection because the government does not have much Internet connection. “Neri said that the presentation of benefits focused more on the benefits of the government from the project, rather than on the advantages of having a single platform which can cater to the needs of multiple users."

- Neri asked how the Chinese company can provide 4G services when China itself is still struggling with 3G technology.

- Neri was concerned that the terms of the project may not be as the President wants. He twice said that the project should be discussed with the President again, especially regarding the loan terms and the benefits.

- Three days after the meeting, on March 29, 2007, the Neda Board approved the project evaluation report of the ICC on the NBN.

- Newsbreak, citing sources, reported that Abalos offered Neri P200 million in exchange for the approval of the contract. Newsbreak said Neri was removed from Neda two days after informing the President of the bribery attempt; “the President allegedly said he can forget the money but he should go ahead and approve the contract." Neri would not confirm or deny the alleged bribe.

- On July 27, 2007, Neri confirmed that he had been moved out of NEDA and transferred to the Commission on Higher Education.


DOTC Assistant Secretary Lorenzo G. Formoso III

- Asec Formoso, who is also a Commissioner of the Commission on Information and Communications Technology, was appointed assistant secretary in September 2006.

- He has extensive expertise in the telecommunications industry and legal consultancy work with multilateral development institutions.

- He is a member of both the Philippine Bar and the State Bar of California.

- According to Joey's affidavit, Formoso attended the former's meeting with Abalos in Comelec in December 2006.

- During a forum at the Ateneo Professional Schools in Makati, Formoso disclosed that the signed copies of the NBN contract were stolen.

- Formoso, along with Mendoza and DOTC Asec Elmer Soneja, is a respondent in the graft charges filed before the Ombudsman by Padilla over alleged anomalies in the awarding of the project to ZTE.


DOTC Assistant Secretary Elmer A. Soneja

- An acting DOTC assistant secretary since October 2006, Soneja was appointed in May 2007 by President Arroyo to the post of DOTC assistant secretary.

- He was chairman of DOTC's Bids and Awards Committee on Information and Communication that handled the NBN deal.

- According to Joey's affidavit, Soneja attended the former's meeting with Abalos at Wack Wack Country Club.

- Soneja is also a respondent in the graft charges that Padilla filed before the Ombudsman. - Source: GMA News Research/GMANews.TV

Why the peso keeps rising

By Cielito Habito, Inquirer Last updated 08:13pm (Mla time) 10/07/2007

MANILA , Philippines--LAST WEEK, Bangko Sentral Ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo was quoted as saying that the uptrend in the value of the peso vis-a-vis the dollar will continue for the rest of the year. This is in spite of jitters from rising oil prices and the credit crunch in the US , and notwithstanding the BSP's occasional intervention at the spot foreign exchange market to avoid drastic movements. I agree with the BSP. Let me explain below why.

Confidence interval
We hear of forecasts that see the peso-dollar rate falling to 43 by yearend. Even bolder forecasts have it going down to the 40 level. When asked for my own fearless forecast for the exchange rate, I always point out that even economists like me are not well equipped to make accurate predictions about the level that the exchange rate will settle at within a particular time frame. Not even the most sophisticated mathematical models of the economy can capture all the key elements that go into the determination of the actual level of the exchange rate. I can make a reasonable prediction on the general direction the rate will take, but don't ask me what the rate will be. Even if an economist or financial analyst were to give a number, the "confidence interval" of the estimate (i.e. the range of values the number could take with no statistically significant difference) would be so wide as to render the forecast of little use. For example, a confidence interval of plus or minus 5 percent on a P43:$1 exchange rate would mean that it could be anywhere between P41 to P45. And given recent developments, the confidence interval probably couldn't be narrower than that.

Continuing uptrend
Like the BSP, I believe the peso will continue to appreciate. By the way, I studiously avoid referring to the situation as having a "strong" or "strengthening" peso, because that word tends to convey the misleading notion that the peso's appreciation is a good thing. Most of us realize that the declining peso-dollar exchange rate is both good news and bad, depending on who's affected. I have already written before why under current circumstances, more Filipinos are probably hurt rather than helped by the peso's continuing rise relative to the dollar. So why will the peso continue to rise? It's actually a classic illustration of the most fundamental principle in economics, the law of supply and demand. The law simply says that the price of something goes down when its supply increases, or demand for it decreases, or both--and vice versa. The dollar is getting cheaper (i.e., its peso price is falling) because supply of dollars in the country has been rising, while demand for it has also been falling.

Where does the supply come from? Foreign exchange comes in via export earnings, spending by foreign tourists, foreign investments, inward remittances from overseas Filipinos, and foreign borrowings. OFW remittances and foreign investment inflows are bringing in the surge in dollar supplies the most. As of July, $8.1 billion of remittances have already come in this year, a jump of 16 percent over last year's comparable figure. Net portfolio investment inflows (i.e., "hot" money) came up to $3.3 billion from January to August, more than three times the same amount last year. Net foreign direct investment inflows in the first six months rose 16 percent from last year, to $1.2 billion.

Export earnings (including exports of services such as call centers) continue to grow as well, albeit at a slower rate than before--and the slowdown is probably manifesting the expected effect of the appreciating peso. Foreign tourism also continues to grow, with Korea being the top source of our foreign tourists. Meanwhile, continuing foreign borrowings by both government and the private sector also add to the dollar supplies. And with the multibillion-dollar loans being offered to us by China alone, domestic dollar supplies would continue to be pumped up. Interestingly, Thailand has begun to deliberately turn away foreign funding for its major projects precisely to stem the tide of foreign exchange inflows.

Slower demand
But the rising peso is also the result of falling demand for the dollar. Demand comes mainly from Importers, and Filipinos who wish to travel or invest abroad. Our imports actually fell in real terms in the first half of the year, dropping 11 percent in the second quarter--which is bad news considering that the bulk of our imports are production inputs, signaling a slower economy ahead. Demand for dollars by outbound Filipino tourists and investors are of far less significance at this time.

The supply and demand story thus easily explains why the dollar keeps getting cheaper. And the trends aren't about to change in the near future. The dollar outlook in the world markets is for continued weakening, especially with the US economy's current woes and the further easing of US money supply by the Fed. Thus, expect domestic dollar supplies to continue rising. Demand will rise somewhat if oil prices spike up, but it seems that the surging dollar supplies will continue to dominate the picture. The dollar is at around P45 now. Expect it to get lower for some time to come.

COA: Palace misused charity funds, has unbooked loans, huge advances

EXCLUSIVE: Months ahead of last week’s row over "cash gifts" for local politicians and legislators, the Commission on Audit had admonished the Office of the President, under Gloria Macapagal Arroyo, to hold its officers accountable for sundry questionable expenses in 2006.

The COA said the Palace had diverted donations for calamity areas to spruce up the Malacanang Golf Course, incurred huge amounts of unliquidated cash advances, issued loans without records, and could not explain big discrepancies between the booked and physical inventories of supplies, property and equipment.

Sergio Apostol, chief presidential legal counsel, told GMANews.TV Wednesday night that incurring unliquidated cash advances “is normal" among government agencies.

"That can be settled easily. Perhaps, the receipts and vouchers have not yet been forwarded to COA when it made the audit. But I think the papers are already with the COA," Apostol said.

Apostol declined to comment on other portions of the COA findings. He said he has not received a copy of the report.

The COA, in its official audit of the accounts and operations of the Office of the President from January to December 2006, rendered “a qualified opinion on the fairness of the financial statements" and listed 10 adverse “observations and recommendations."

In particular, the COA audit revealed that Mrs Arroyo’s office:

• Failed to settle cash advances worth P615 million made to officers and employees, local government units and government corporations;

• Granted P269 million in loans out of the President’s Social Fund “without supporting documents and disbursement vouchers;"

• Diverted P8.8 million in donations for calamity areas, including P900,000 to spruce up the Malacanang Golf Course, P3 million for hotel and conference expenses, and P4 million as “donation" to an unnamed foundation;

• “Improperly recorded" P112 million in fund transfers to local government units, government corporations and nongovernmental organizations;

• “Erroneously recorded in the books of the Office of the President" the P48.9 million balance of a trust account under the name “President’s Social Fund-Livelihood Assistance Program" deposited with the Land Bank of the Philippines;

• Failed to reconcile booked and physical inventory office supplies, property, plant and equipment, worth P70 million in all;

• Understated the accumulated depreciation and depreciation expense accounts of property, plant and equipment worth P950 million;

The COA said the audit sought to “ascertain the propriety of the financial transactions and determine the fairness of the presentation of the statements" of the Office of the President that consists of “the OP Proper and the agencies under it."

The 60-page COA report was submitted to Executive Secretary Eduardo Ermita on June 25, 2007. The report was signed by COA Director IV Bato S. Ali Jr., Cluster I – Executive and Oversight director, while the transmittal letter to Ermita was signed by COA Commissioner and officer-in-charge Reynaldo A. Villar.

Lawyer Susan D. Vargas, Malacanang’s deputy executive secretary for administration and finance, and Teresita P. Valdellon, department chief accountant, signed the “Statement of Management’s Responsibility for Financial Statements."

‘Best estimates’

Vargas and Valdellon certified that “the financial statements have been prepared in conformity with generally accepted state accounting principles and reflect amounts that are based on best estimates and informed judgment of management with an appropriate consideration to materiality."

Too, they wrote that, “management maintains a system of accounting and reporting which provides for the necessary internal controls to ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition, and liabilities are recognized."

The OP Proper, COA explained, consists of “the Private Offices, the Presidential Assistant System, the Executive Offices, the General Government Administration Staff, the Internal Administration Staff, the Internal Audit Service Unit, the Locally Funded/Foreign-Assisted Projects, and other Executive Offices."

In addition, “the OP directly supervises 61 other executive offices, agencies, commissions and committees that warrant the special attention of the President."

COA cited that “Article VII of the 1987 Constitution vests the executive power upon the President," who also “exercises control of all the executive departments, bureaus and offices" and “ensures that laws be faithfully executed."

Unliquidated millions

For 2006 and even two years prior, COA noted that the OP had failed to liquidate cash advances made to cash-disbursing officers worth P77 million; cash advances to officers and employees worth P29.5 million, and “other receivables" worth a whopping P508 million.

In its qualified comment, the audit cited that under Section 89 of Presidential Decree 1445, “A cash advance shall be reported on and liquidated as soon as the purpose for which it was given has been served."

On the other hand, COA Circular 97-002 prescribes deadlines for liquidation of cash advances, and failure to do so “shall constitute a valid cause" for withholding the salary of the accountable officers. COA has proposed that the OP “compel" these officers to settle their accounts within the prescribed period, and refrain from granting additional cash advance to those with unsettled accounts.

Loans sans records

Last year also, COA said that “loans granted under the President’s Social Fund in CY (calendar year) 2003 and January 2004 totaling P269,527,000 were not booked up, thus understating the appropriate Loan Receivable accounts while overstating the Cash in Bank account."

The report explained that “one of the main funding sources of OP is its share in the net earnings of the Philippine Amusement and Gaming Corporation (Pagcor), also called the President’s Social Fund."

Initially, the PSF provided funds to implement the “Isang Bayan, Isang Produkto, Isang Milyon," that Mrs Arroyo eventually institutionalized through Executive Order No. 176 issued in 2002.

Under the program, “to simulate economic activity and growth of small and medium enterprises" Malacanang allotted P1 million loans for a borrower in each town and city, payable to the Land Bank.

The COA determined that loans granted totaling P216 million in 2003 and January 2004 “were not recorded in the books." Just as bad, “reports required from grantees/borrowers pursuant to the MOA (memorandum of agreement) such as accomplishment, financial and terminal reports were not submitted."

Donations diverted

The diversion of donations received for calamity victims by Malacanang was also discerned by COA.

In 2006, COA said the Office of the President received “from various sources" donations totaling P65,413,463.79 or P65 million, for the following purposes:

• Donation for the Southern Leyte landslide, P7.1 million
• Donation for Socio-Economic Projects of the President, P35.6 million
• Donation for Typhoon Milenyo victims, P2.7 million
• Donation for the relief and rehabilitation of affected areas in Albay province, P20 million.

COA’s adverse finding follows: “We noted, however, that out of the actual expenses incurred totaling P64,079,173.40 from the donations, expenses totaling P8,807.621.75 could not be identified with any of the purposes of the donations."

According to COA, Malacanang had reported using the donations thus:

• Burial expenses, P795,000
• Hotel Expenses, P815,380.15
• Maintenance of the Malacanang Golf Course, P900,000
• Summit Conferences/General Assembly, P2,295,241.60
• Donation to Foundation, P4,000,000

These expenses “out of the purposes of the donations are contrary to Section 13 of the General Provisions of the General Appropriations Act of 2005," which stipulates that “donations, whether in cash or kind, shall be deemed automatically appropriated for the purpose specified by the donor."

“We recommend that management strictly use donations for the intended purposes specified by the donors," COA stated.

However, it took note of the explanation given by Malacanang officials that, “some donations have (a) general purpose, so they have wider discretion of what purpose these donations shall be released."

Still, COA stressed that, “the provisions of the law on donations… shall be faithfully observed."

Inventory discrepancies

Yet another qualified comment COA made pertained to discrepancies between physical and book inventories of supplies and equipment in the Office of the President.

The audit report said that under “Construction in progress – Agency Assets," Malacanang booked a balance of P198 million, but “per physical count, it has no balance since such construction of assets was already completed."

Too, the Inventory Committee of the Office of the President “failed to conduct physical count of other inventories worth P13,495,998.07," and failed to file the required semestral reports on the same.

The balance sheet of the inventories reported to COA by Malacanang included:

• Merchandise inventory worth P726,339.39
• Drugs and Medicines Inventory, P264,155.15
• Medical, Dental & Laboratory Supplies Inventory, P152,286.56
• Gasoline, Oil and Lubricants Inventory, P3,511,843.18
• Other Supplies Inventory, P8,788,899.79
• Livestock Inventory, P52,474.00

However, COA determined that:

• “There was no physical count of the Merchandise Inventory and Livestock Inventory since the balances of these were carried in the book s of accounts and non-moving since 2000."

• “Drugs and Medicines Inventory have been immediately issued upon receipt."
• “Gasoline, Oil, and Lubricants Inventory had never been inventoried semi-annually or annually."

• “In the absence of the physical count, the reliability of the balance of inventories are doubtful," COA said.

Dormant accounts

Finally, COA said Malacanang continues to keep in its books, as of December 31, 2006, various dormant accounts totaling P293 million dating from as far back as 1992.

The biggest item under this account pertain to “Other Investments and Marketable Securities" valued at P275.6 million.

“Management reasoned that their pertinent records are no longer available due to the fire that gutted the agency’s Administration Building sometime in August 1995," COA said, “hence the difficulty or the impossibility to retrieve the required papers." – Malou Mangahas, GMANews.TV/GMA News Research

Source: http://www.gmanews.tv/story/64838/COA-Palace-misused-charity-funds-has-unbooked-loans-huge-advances#