MANILA – The Commission on Audit (COA) has the authority to investigate the financial books of the Philippine Red Cross (PRC) because it gets government subsidy or equity, Justice Secretary Menardo Guevarra said on Thursday.
“Under the constitution, the COA has the power to examine on a post-audit basis all accounts pertaining to the expenditure or use of fund by any non-governmental entity receiving subsidy or equity, directly or indirectly, from or through the government,” Guevarra told reporters.
President Rodrigo Duterte has previously ordered an audit of the PRC headed by Senator Richard Gordon.
“The Philippine Red Cross is one such entity receiving subsidy or equity from the government through the instrumentality of the Philippine Charity Sweepstakes Office,” Guevarra said.
COA can look into the PRC’s memorandum of agreement (MOA) with Metro Manila mayors for the Covid-19 testing, as well as its MOA to seek an advance payment of PHP100 million from Philippine Health Insurance Corp. (PhilHealth) for testing services, according to Presidential Spokesperson Harry Roque.
Roque added that the advance payment condition under the MOA breaches the PRC Charter and Republic Act (RA) 11469 or the Bayanihan to Heal as One Act which specifies that only reimbursement, not advance payment, is permitted in the transfer of goods and services.
Roque also criticized the PRC’s decision to charge PHP3,500 for each Covid-19 test, even if the machines used for testing are donated.
He claimed that the cost of Covid-19 is greater than the PHP2,077 that the PRC should have imposed for each test because the devices are provided.
