Several officials of the Film Development Council of the Philippines (FDCP) are facing liability for the distribution of financial aid amounting to P878,896.87 in food and healthcare allowances, as confirmed by the Commission on Audit (COA).
In a decision upheld by COA, notices of disallowances were issued against the FDCP for the distribution of aid to its employees during the COVID-19 pandemic. The notices were issued on March 8, 2021, and despite efforts by the agency to have them revoked, they remain in effect.
The aid provided to FDCP officials and regular employees included health assistance totaling P476,896.87. However, it was discovered that these allowances were not cleared by the Department of Budget and Management before being distributed, leading to the disallowance.
Additionally, P400,000 was allocated for the distribution of P5,000 each to contractual and job order employees for food and groceries. COA deemed this as an “irregular expenditure” since the funds were given to non-permanent employees without proper authorization.
According to COA Circular No. 2012-03, “irregular expenditures” refer to funds distributed without adhering to established laws and regulations. In this case, the lack of a legal basis for the distribution of food allowances, rice subsidies, and healthcare allowances led to the classification of these expenditures as irregular.
As a result, non-permanent employees who received the P5,000 aid will be required to return the amount. The FDCP officials responsible for approving the distribution of the allowances will also be held liable for the total amount of P878,896.87.
Among those held liable by COA are former FDCP Chairperson Liza Diño, Executive Director Ria Anne Rubia, Chief Administrative Officer Emelita Alquiza, and Budget Officer Jose Carlos Pasion. They will be accountable for the irregular expenditures and will need to address the issue accordingly.
This development serves as a reminder of the importance of following proper procedures and regulations in the distribution of financial aid, especially during times of crisis such as the COVID-19 pandemic. It underscores the need for accountability and transparency in handling public funds to avoid any irregularities and discrepancies that could lead to disallowances and liabilities.
/Digital Sauce
- COA upholds decision to issue notices of disallowances against FDCP for COVID-19 aid distribution
- FDCP officials received health assistance and non-permanent employees received food and grocery allowances
- Funds for allowances were not cleared by the Department of Budget and Management
- COA considers distribution of funds as irregular expenditures due to lack of legal basis
- Non-permanent employees required to return received funds
- FDCP officials held liable for the distribution of allowances, including former Chairperson Liza Diño and others