Department of Social Welfare and Development (DSWD) Secretary Judy M. Taguiwalo said that considering the nature of the Pantawid Pamilyang Pilipino Program (4Ps), the huge amount of cash transfers being implemented and the fact that the Land Bank of the Philippines (LANDBANK) is the sole government depository bank for the Pantawid payout, the COA findings did not come as a surprise.

“The program has major administrative weaknesses that lack clear cut policies that address them. We have seen ways in which the program can be manipulated sans clear guidelines and tight monitoring. The problems concerning unliquidated amounts and unclaimed grants are among these. The present DSWD is crafting new financial management policies and procedures to intently address lapses in procedure and documentation especially so that the Program involves billions upon billions of borrowed funds that will be paid by the Filipino people,” Taguiwalo said.

“From the Audit Observation Memorandum (AOM) issued by the Commission on Audit (COA) to the DSWD which became the source of several news reports, we have identified the following issues that are now the focus of our ongoing efforts: unliquidated funds; funds for remittance to the Bureau of Treasury; and unclaimed grants by 4Ps beneficiaries,” Taguiwalo pointed out.

“On the issue of unliquidated funds of P7.658B as of December 2016, the DSWD has explained to the COA that as of March 31, 2017, the remaining amount for liquidation is down to P4.094B. From January 2016 to March 2017, the DSWD has liquidated 47% of the original unliquidated balance of P7.658B which is an accumulated amount from 2008 – the year the program was implemented. Clarification is also in order that liquidation is the primary responsibility of our partner agency, the LANDBANK, and it is also the LANDBANK’s responsibility to push its conduits to submit their liquidation documents. On this point, we believe that the DSWD is not remiss in asking the LANDBANK to liquidate.” Sec. Taguiwalo added.

“As to funds for remittance to the Bureau of Treasury, we will also require the LANDBANK to implement the necessary steps to recover the amount that should be remitted to the Bureau of Treasury representing those accounts that have been validated to be due for closure. Also, accounts due for replacement and those accounts that need cash grants to be transferred to new accounts will be endorsed to the LANDBANK as soon as the requirements are completed. Of the original accumulated unremitted amount of P4.099 billion, the DSWD has thus far remitted P946,230,055.04 and P992,256,640.76. We are also ready to remit additional P752,897,500.00 as soon as the guidelines are in place.”

As regards the pinpointed supposed unwithdrawn amount of P1.285 billion in 2,646,577 accounts of CCT beneficiaries, Sec. Taguiwalo clarified that the actual number of accounts with balances ranging from P501 to more than P50,000 that were not withdrawn from 30 to 2,190 days (cashcard, prepaird card and FCD Pitakard) is only 194,198 and not 2,646,577, with aggregate unwithdrawn cash grants of only P1,121,721,207.87. She also shared that the DSWD is currently validating the status of these accounts.

“Our initial validation showed the following: 7,072 accounts with outstanding balance of P43,378,639.88 already withdrawn by beneficiaries; 8,961 accounts with grants amounting to P53,262,772.52 still for withdrawal. These accounts were reported as claimed, however, beneficiaries were either unaware that they have unclaimed grants or do not know how to withdraw; 9,210 cash cards with total balance of P116,638,632.12 lost/stolen/damaged, hence, due for replacement; 7,129 accounts with balance of P20,573,603.89 due for closure due to ineligibility or waiver from the program; 4,207 accounts with unwithdrawn grants of P37,280,014.13 inactive but appealable household (HH) status. Closure of account or release of cash grants shall be identified once final HH status is updated in the Pantawid Pamilya Information System; and 88 accounts with total cash grants of P517,088.65 kept by beneficiaries as savings. As for the remaining 148,876 accounts with grants of P702,709,029.64, the Department shall fast track the validation, investigation/re-assessment on the eligibility of concerned beneficiaries,” Sec. Taguiwalo shared.

She added that the DSWD is already coordinating with the LANDBANK on the results of validation.

“Admittedly, unclaimed grants are chronic problems that must be addressed by clear cut policy on forfeiture. Operations issues on accounts verification is also a persistent challenge that we are now addressing”, Sec. Taguiwalo concluded. ###