SEC to monitor unscrupulous NGOs

Charitable organizations, non-government organizations (NGOs) and foundations masquerading

as non-stock, non-profit organizations in the countr !ill face sanction if the are engaged in illegal
activities"
#ouse $ill %%%&, authored 'ep" (oaquin Chipeco (r" ()
nd
*istrict, +aguna), mandates the
,ecurities and -.change Commission (,-C) to monitor and investigate the activit of some NGOs,
foundations, and similar organizations !hich ma be involved in unscrupulous transactions similar to the
groups implicated in the pork barrel scam"
/0he continuing saga involving 1*23 accountabilities has brought to the fore !idespread abuses
and malpractices committed b some NGOs" 'egistered as non-stock, non-profit organizations, these
fraudulent organizations have put honest-to-goodness foundations and NGOs as !hole into disrepute,4
Chipeco said"
Chipeco said questions have been asked !h the ,-C, the government5s corporate !atchdog,
didn5t alert the general public as to the e.istence of these dubious organizations"
/*id the ,-C fail in its mandate of protecting the people b its inabilit to raise 6red flags5
concerning unethical business practices of these entities74 asked Chipeco"
2t present, there is no la! that mandates the ,-C to monitor foundations, NGOs, and other
similar groups e.cept for some provisions of 'epublic 2ct No" 898:; or the 0errorist 3inancing
1revention and ,uppression 2ct of )98)"
0he measure also aims to address the reported acute lack of resources and personnel on the part of
the ,-C"
Chipeco said ,-C has onl eight processors tasked to do the <ob and could not possibl check the
activities of 89,999 active foundations out of a total of )8,999 registered foundations"
#e e.plained that the current ,-C practice of performing random e.aminations of around si. to
89 percent of the active foundations in a ear is not enough to cleanse the slate of illegitimate
organizations"
/=t is also deemed necessar to equip the Commission !ith sufficient information technolog to,
among others, trigger alerts regarding irregular activities of these organizations from the moment the file
their applications for registration !ith the Commission,4 Chipeco stressed"
>nder the measure, ,-C is directed to enlist the assistance of an branch, department, bureau,
office, agenc or instrumentalit or the government, including government-o!ned and-controlled
corporations (GOCCs) in undertaking its monitoring and investigator functions" =t shall furnish the
appropriate la! enforcement agencies !ith the official results of its investigation"
0he bill also provides that the ,-C shall conduct a periodic revie! of its budgetar requirements,
upgrading its personal services and institutionalizing computer-assisted monitoring and revie! of
activities of all active NGOs, foundations and similar institutions registered !ith the Commission" (?9)
lvc
NR # 3520
JULY 7, 2014