DND 'illegally' sourced P74M from quick response funds –COA

The Department of National Defense (DND) has used P74.7 million for its procurement and repair expenses in 2016 even though it was not covered by its Quick Response Fund (QRF), the Commission on Audit (COA) said in a report.

In its 2016 audit report on the DND, the COA said P74,672,986.72 was sourced from the department's QRF for the procurement of supplies and equipment and for the repair and construction of buildings.

This, even though they "do not fall within the definition of the QRF as stated in the Special Provision of the GAA (General Appropriations Act) 2014."

According to the law, QRF should only be used as "stand-by" for the relief, rehabilitation and reconstruction programs that will normalize the situation and living conditions of calamity-stricken individuals.

"Disbursements... was not in accordance with the guidelines set on how the QRF shall be utilized," COA said in its report.

The COA said that out of the P74.7 million, P29.8 million were used for the procurement of equipment and goods, itself a "pre-disaster activity," while P44.5 was used for the repair and construction of buildings.

"While these items are inevitably helpful during disasters or calamities, it is not in line with the intention of the QRF which should be utilized in prepositioning activities as well as rehabilitation of and reconstruction of communities affected by calamities, epidemics, crises and catastrophes," the COA said.

The COA has recommended the DND to prepare a Program of Expenditure for QRF that includes a comprehensive relief and rehabilitation plan, the situation and living conditions of the victims, and a list of calamity-stricken areas during the year.

It also directed the department to justify its procurement and repair expenses, create a committee that will coordinate with other agencies to ensure projects using QRF are not duplicated, and regularly post quarterly reports of the funds utilization on its website.

For its part, the DND said the QRF projects are covered with "duly approved" expenditure programs.

"The DND ever since is for command and control activities such as the organization, training and equipage of the AFP, as first responders. This has been further affirmed in former President [Benigno] Aquino [III]'s veto message on the GAA 2014 that the QRF can be used to preposition goods, emergency response units and allied support items and equipment," the DND said.

“These include the necessity for the AFP to rehabilitate or repair buildings and facilities as allied support to responses of the AFP in HADR (humanitarian aid and disaster relief missions),” it added. —KBK, GMA News