The Department of Social Welfare and Development (DSWD) clarified today that Priority Development Assistance Fund (PDAF) releases to non-government organizations (NGOs) are all accounted for and are in the process of liquidation by concerned NGOs.

The clarification came after news circulated that, based on a 2012 Report of the Commission on Audit, the DSWD has P854.4 M of unliquidated PDAF.

The Department explained that the reported fund releases constitute all PDAF released by the DSWD Central Office and its 16 regional offices to NGOs from 2002, or even earlier, up to 2012.

The DSWD emphasized that the process of liquidation is a continuing activity. It requires the submission of documentation of program implementation until all expenditures are fully accounted for.

The Department added that it has a working system of monitoring NGO compliance. Its Protective Services Bureau monitors project implementation, while its Finance and Management Service monitors liquidation, sends NGOs demand letters if they fail to liquidate properly, and forwards the matter to the Legal Service for legal action if the NGOs fail to comply.

As early as February of this year, even before the PDAF issue has surfaced, the Department already referred 11 erring NGOs to the Office of the Solicitor General (OSG) for filing of cases.

“At present, a number of NGOs are responding to our demand letters and are submitting their liquidation reports. These reports, in turn, are being validated by our Internal Audit Service,” DSWD Secretary Corazon Juliano Soliman said.

As of today, the DSWD is reviewing and validating NGO liquidation reports amounting to P144 million. “We expect that more reports will be forthcoming, as we are tightening our monitoring systems,” Secretary Soliman added.

“Rest assured that all PDAF funds went to legitimate NGOs implementing DSWD accredited programs and services for the benefit of qualified beneficiaries,” Secretary Soliman stated. ###