Why Rosa Rosal wants P200M Red Cross Funds Audited

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Red Cross Fires Accountant for Exposing ‘Irregular Transactions’

BY RON ESTUR – DECEMBER 12, 2013
POSTED IN: PHILIPPINE NEWS, PHILIPPINES

MANILA, Philippines – An accountant of Philippine Red Cross (PRC) was fired after he questioned some transactions involving the organization’s funds that have nothing to do with its humanitarian work.

Jeric Sian lost his job as Red Cross’s chief accountant after writing a letter to the Board of Governors seeking an audit of some of its “anomalous” projects and the expenses of PRC secretary general Gwendolyn Pang.

In a news report aired over TV Patrol on Wednesday, Sian allegedly wanted an audit of some irregular past transactions that included:

Media placement fees of around P30 million for its Million Volunteers Run this year and other similar projects
Money placement of more than P6 million to Deutsche Bank as PRC Fund Manager
Breakdown of expenses of Pang during her Geneva travel amounting to P 191,602.50
Membership Insurance Contract with PGAI worth P93 million
Payment for PRC website that costs P5 million
‘Magic Sing’ karaokes and baller IDs in the name of Richard Gordon during his presidential campaign
Sian also wanted an audit of “lands and buildings owned by PRC that were sold as well as the purchase made by PRC to acquire new lands and buildings.’

But according to PRC’s lawyer, Oscar Palabyab, the Board of Governors of PRC had looked into the matter.

He assured the allegations made by Sian were seriously examined by the board and an investigation was conducted based on evidence provided by accountant.

He added that an independent audit will look deeper into the accusations to prove that the organization has not committed any misuse of funds.

Rosa Rosal wants audit of fund

After getting a copy of Sian’s letter, PRC Governor Rosa Rosal immediately requested for an audit of the alleged irregular expenses made by Pang amounting to almost P200 million.

In her letter sent last October, she also sought for the suspension of Pang based on those charges and Sian’s claim.

Also included in Rosal’s complaint were:

• “WoW” tarpaulins of PRC Chairman Richard Gordon allegedly purchased using PRC fund when he was still tourism secretary from 2007 to 2009
• Purchase of 50,000 pieces of plastic whistles (PhP 1.8 M was charged to PDAF of Chairman Gordon) without public bidding and approval from the board
• Purchase of ambulance and equipment using Gordon’s PDAF without complying to PRC policy resulting in financial loss
• Another former Board of Governor member, John Bo, supported Sian and Rosal’s move to push for an internal audit and suspension of Ms. Pang.

Bo was a youth representative on the board but was also fired like Sian after he owned to some of the complaint raised by the chief accountant.

“Inako ko yung complaint, sabi ko ako ang gumawa niyan at nag-send sa mga nakatanggap niyan. Para lang masimulan ‘yung imbestigasyon sana, at maprotektahan kung sakali ‘yung mapag-iinitan,” Bo said. (I owned to some of the complaint, I told them I did and send them to the recepients. I just want the investigation to start and protect those who might be blamed.)

Like Rosal, Bo also confirmed some of Ms. Pang’s transactions using Red Cross funds, such as:

• Expenses made on expensive wines and beers in a posh bar in Manila
• Rental of a parking space of Ms. Pang’s car in a condominium (P2500/month)
• Wedding gifts, and
• Personal cell phone bills
• Bo added he had receipts of the alleged expenses.

“Ganyan ba ang gagawin natin sa pondo ng Red Cross?” he asked. (Is this how we should spend the Red Cross’ fund?)

Red Cross’s Official Statement

The official Red Cross website issued an official statement denying all the allegations. It read:

“The news report claimed that there were anomalies in the expenditures of the Red Cross. The allegations were largely directed at the organization’s Secretary General, Gwendolyn Pang. They stem from a long-running and malicious campaign orchestrated by disingenuous members of the Red Cross who have since been dismissed. Ms. Pang is subsequently taking legal action against some of these individuals on the grounds of libel.”

“All of the allegations have been rigorously investigated on two separate occasions in accordance with the Philippine Red Cross rules and procedures relating to accountability and transparency. Following the investigation Ms. Pang was fully exonerated and the Philippine Red Cross Governing Board has expressed its full confidence in her continued leadership of the organization.” (Click here to read the full statement)

Meanwhile, PRC Chairman and former senator Richard ‘Dick’ Gordon refused to comment on the issue.

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