MANILA, Philippines – In a program meant to lift the poor and marginalized into the economy, the office of Vice President Sara Duterte skipped a crucial step: an independent check on whether the businesses it supports are viable.

State auditors flagged the Office of the Vice President (OVP) for failing to evaluate business proposals under its Mag Negosyo ‘Ta Day program with the help of the Department of Trade and Industry (DTI) and the Philippine Deposit Insurance Corporation (PDIC).

The 2024 audit, released by the Commission on Audit (COA) on Monday, December 1, found that none of the 128 people and 10 non-governmental organizations chosen as beneficiaries underwent the required assessment to determine if their enterprises were viable.

State auditors said assessments by the DTI and PDIC were required based on the rules set by the OVP itself.

The program, which promises training, financial literacy, and skills development, was meant to turn beneficiaries into self-reliant partners in addressing social issues. Instead, the audit suggested, it may have handed out aid without accountability.

Under the program, each individual receives P15,000 in cash assistance. Group beneficiaries receive P100,000 for organizations with 20 members or fewer, P150,000 for 21 to 100 members, and P200,000 for groups with more than 100 members.

Recommendation for approval is entrusted to the OVP director of operations, while final approval is discretionary to the OVP chief of staff or, in their absence, a designated assistant chief of staff.

Based on the program’s operations manual, all beneficiaries, whether individuals or NGOs, must submit business proposals for feasibility and viability evaluation.

The manual also requires participants to complete training on financial literacy, skills development, and other programs provided by the DTI and the PDIC, before they submit their project proposals within five working days.

“The feasibility and economic viability of the project proposals of the 138 beneficiaries both individuals and NGOs/CSOs (civil society organizations) were not reviewed by the PDIC and DTI due to the absence of any evaluation or assessment report,” read part of the audit report.

State auditors said the DTI and PDIC could not just step in because the OVP did not prepare a written agreement delineating the agencies’ responsibilities in reviewing project proposals.

They said the feasibility and viability assessment was intended to ensure that public funds that the OVP will distribute to the selected beneficiary will help them start a business and that the money will not simply go to waste.

Auditors also reported that after releasing the funds, the OVP visited only 11 out of 73 people and 10 NGOs to check on the status of their investments or micro-enterprises.

They pointed out that under the OVP’s own manual of operations for the program, it is a requirement for its satellite offices or special projects division to conduct a home visit three months after funds are released.

“In order to evaluate and ensure that the seed capital is used for micro-enterprise development, monitoring and evaluation activities should be regularly conducted and properly documented,” the report added.

Without such monitoring, the state auditors said the OVP may not be able to determine if the cash releases actually helped improve the lives of its chosen beneficiaries.

Responding to the findings, the OVP simply said it had changed the requirement for DTI and PDIC assessments, transferring the function to its own staff and using a “Project Assessment Tool” it created to take their place. – Rappler.com