The Philippine Red Cross asserted on Sunday, Sept. 12, that funds donated by government agencies to the humanitarian organization were “faithfully” accounted for.
The PRC issued the statement after President Duterte threatened to stop government transactions with the organization if it will not open its financial records for audit.
“As previously stated by the Philippine Red Cross, the humanitarian organization is the recipient of some donations from agencies of the Philippine government,” the PRC said in a statement sent to reporters.
“The Philippine Red Cross has faithfully accounted for the use of such funds in compliance with the donor agencies’ liquidation and reportorial requirements,” it added.
Presidential spokesman Harry Roque earlier maintained that the Commission on Audit (COA) has jurisdiction to conduct a “special audit” on the PRC, which is headed by Senator Richard Gordon.
Under Republic Act 10072 or the Philippine Red Cross Act of 2009, the PRC “shall, at the end of every calendar year, submit to the president of the Philippines an annual report pertaining to its activities showing its financial condition.”
Meanwhile, Justice Secretary Menardo I. Guevarra had said that the COA can conduct an audit of the subsidy or equity the PRC receives from the government like those given by the Philippine Charity Sweepstakes Office (PCSO).
The PRC’s board of governors earlier issued a statement saying that the organization is not subject to audit by the COA being that the it is not a government agency.
For his part, COA Chairman Michael Aguinaldo had said that the state audit agency does not have an authority to audit the PRC.
According to PRC, donor government agencies, in turn, are subject to annual audit by the state audit agency.
“To date, there has not been any adverse finding on any transaction whereby government funds were given to the Philippine Red Cross,” it said.
“Reports of these donations may be obtained by the Office of the President directly from these government agencies, and audits on these government agencies, if any, may be secured from the Commission on Audit,” it added.