DOJ: No need to sue PRC to get yearly audit report

THE Department of Justice (DOJ) on Monday said there is no need for the government to go to court just to compel the Philippine Red Cross (PRC) to submit an annual audit report to President Duterte as its honorary president.

Justice Secretary Menardo Guevarra issued the statement as he maintained that the PRC is obliged to submit an annual audit report to the Office of the President.

“The PRC admits that it receives funds from the government. The PRC is a highly-reputable organization that is expected to manage its funds, whether private or public, in accordance with standard accounting methods and in pursuit solely of its statutory objectives,” Guevarra explained.

“It is duty-bound to submit an annual report of its activities and financial condition to the President of the Philippines as its honorary president,” Guevarra added.

Likewise, the justice chief also said the Commission on Audit (COA) is required under the Constitution to fulfill its mandate to audit accounts pertaining to the use of government funds.

“The Constitution is clear on the scope of the mandate of the COA. This mandate includes the audit accounts pertaining to the use of funds received as subsidy or equity, directly or indirectly by non-governmental entities from the government,” Guevarra pointed out.

“The COA is an independent constitutional commission that is expected to perform its mandate objectively and impartially,” he added.

Guevarra’s statement came as the PRC has yet to respond directly to the call of Duterte for it to comply with its obligation to submit to the President an annual audit report.

On Sunday, the PRC issued a statement insisting that its funds were “faithfully accounted” and that there was no “adverse finding” on any transactions using government funds.

The PRC said reports on the donations may be acquired by the OP directly from the government agencies and that audits on government agencies may be obtained from the COA.

The President earlier warned COA Chairman Michael Aguinaldo of a “long legal battle” if it refuses to perform its duty to audit government funds given to PRC.

He added that if Aguinaldo refuses to perform his constitutional mandate, this would be tantamount to a “dereliction of duty.”

However, Guevarra expressed belief that the standoff between the Palace, PRC and COA would be eventually resolved without the need for a legal action.

“I do not expect that these issues will necessitate any legal action,” Guevarra said.

“I believe that the personalities concerned will resolve these issues in a most cordial and professional manner,” he added.