Pork Barrel Scam Unfairly Taints Legitimate NGOs 

The reported scam involving pork barrel funds of legislators and fake non-government organizations (NGOs) unfairly tarnishes the image of legitimate NGOs, the Caucus of Development NGO Networks (CODE-NGO), a national network of development NGOs with 12 member networks and 1,600 base organizations nationwide declared. “Current news reports about a P10 Billion decade-old scam involving the Priority Development Assistance Fund (PDAF) of congresspersons and senators  drags down  the image and credibility of genuine NGOs who  do hard work in many communities, often with limited funds, and is quite unfair”, said  Sixto Donato C. Macasaet, Executive Director of CODE-NGO.   

According to news reports, this pork-barrel scam is allegedly masterminded by the president of a trading firm and   involves the creation of at least 20 fake NGOs purposely to siphon off PDAF funds into the pockets of unscrupulous individuals. “Why is it that legitimate NGOs find it very difficult to avail of government funding support for their worthy projects, yet dubious individuals are able to use bogus NGOs to run rings around government financial rules?” asked Macasaet. 

CODE-NGO called on the Department of Budget and Management and the Commission on Audit (COA) to immediately review and revise its rules on funding for NGOs and POs even while the investigation into the reported scam is ongoing.  “We cannot afford more scandals like this. It hurts both the government and all legitimate NGOs and POs, who are valuable contributors to nation building and national development” Macasaet exclaimed.  

Circular 2007-001 of the Commission on Audit (COA) which provides guidelines for the release of government funds to non-government and people’s organizations (POs) stipulates that these NGOs need to submit several documents.  These includes their Certificate of Registration with the Securities and Exchange Commission (SEC), Cooperative and Development Authority (CDA) or the Department of Labor and Employment (DOLE), an authenticated copy of their latest Articles of Incorporation or Articles of Cooperation and audited financial reports for the past three years. However, the same circular also provides that for NGOs and POs in existence for less than 3 years, an accomplishment and financial report for the period it has been in operation shall be sufficient. Apparently, an independent validation of the documents submitted by said NGOs and POs is not provided for by the government.  Fake NGOs allegedly utilized in this latest pork barrel scam has reportedly designated the trading firms’ drivers and other employees and even their relatives as the NGOs’ presidents. “We believe that incidents like this can be avoided and the PDAF can be utilized more effectively and responsibly if NGO-recipients are limited to those certified by the Philippine Council for NGO Certification (PCNC) or similar certification bodies”, Macasaet said.

CODE-NGO welcomed the investigation of the National Bureau of Investigation (NBI) into the reported scam and asked that all those found to be involved in this 10 Billion scam be made immediately accountable and brought before the courts.

Macasaet  also challenged Congress to be more transparent about their PDAF and added  “We appreciate DBM’s initiative to post  its PDAF fund releases online, but as articulated  in our PDAF Watch reports, congresspersons and senators should themselves disclose more information about their PDAF, including their criteria and process for selecting projects and beneficiaries.” 

The PCNC is an independent and NGO-initiated and managed certification institution duly recognized by the Department of Finance that certifies NGOs for good governance, financial management, and track record for creating impact to their beneficiaries.   CODE-NGO has been spearheading the PDAF Watch initiative since 2006.  As active advocates of effective, democratic and participatory governance, CODE-NGO upholds and promotes standards of conduct in development work in the same way that it demands good governance from the government. The CODE-NGO network encourages its members and other NGOs to participate in the certification process of the PCNC and to ensure the adherence of member NGOs to the Code of Conduct for Development NGOs.  It is also promoting a Checklist of (Minimum) Good Governance Standards for NGOs and POs.

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