Malacañang on Tuesday accused the Philippine Red Cross (PRC) of repeatedly violating the law when it failed to submit its financial reports to the government and profiting from its Covid-19 tests.
Citing Republic Act No. 10072 or the Philippine Red Cross Act of 2009, Presidential spokesperson Harry Roque said the PRC is mandated to furnish the Office of the President its financial report every calendar year.
However, he said the non-government organization (NGO) has been unable to do so since 2016, when President Rodrigo R. Duterte started his term.
Roque reiterated Duterte wants PRC audited by the Commission on Audit (COA) particularly pertaining to its expenditure related to the “subsidy or equity directly or indirectly from or through the government.”
COA issued Circular No. 96-003, which allowed it to audit NGOs, according to Roque.
Among the issues COA could audit PRC, Roque said is its memorandum of agreement with Metro Manila Mayors and the Philippine Health Insurance Corporation (PhilHealth) for mass Covid-19 testing in exchange for P100 worth of advance payment.
“It is clearly stated in the PRC charter that it could make a profit while doing its mandate. The advance payment clause in the MOA is a clear violation of the PRC Charter and the Bayanihan to Heal as One Act, where reimbursement in the distribution of goods and services is allowed…but not advance payment,” Roque explained.
He also said COA can also look into the alleged overcharging of PRC for its Covid-19 tests, which cost P3,500 instead of the ideal P2,077 since the machines it used were donations.
“These are some of the things COA should look into,” Roque said.
Roque issued the statement after Duterte threatened he will have COA probe PRC after Senator Richard “Dick” Gordon, as head of the Senate Blue Ribbon Committee started investigating the alleged anomalous procurement of billions of pesos worth of medial supplies the Department of Health (DOH), Procurement Service of the Department of Budget and Management (PS-DBM), and the involvement of former economic adviser Michael Yang in the said transaction.
Gordon is the incumbent chairman of PRC.
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