FEB.

6, 2015

NR # 3734

Accreditation of NGOs/POs for accountability in the use of public funds

The House of Representatives may soon start plenary debates on the proposed
NGO Accreditation for Government Fund Releases Act which seeks to ensure
accountability and transparency in the use of public funds by non-government sectors.
The proposed Act, contained in HB 4688 and principally authored by Rep. Teddy
Brawner Baguilat, Jr., has been approved and endorsed for plenary consideration and
passage by the Committee on Peoples Participation chaired by Rep. Benjamin D. Asilo.
The bill, now one among bills in Plenarys Business for the Day list as of January
27, seeks to provide a system of accountability and transparency through determining
responsibility over the proper utilization of government funds and the successful
implementation of the projects.
The measure seeks to recognize the need of the State to establish a Central
Accrediting Agency for the Non-Government Organizations (NGOs) and Peoples
Organizations (POs) seeking to be entrusted with government funds, the author stressed.
HB 4688, in substitution of the original HB 3444 filed by Rep. Baguilat, mandates
coverage of all NGOs and POs seeking to implement programs and projects using public
funds from any government agency.
Co-authors of the Committee-endorsed bill are: Chairman Asilo; Hon. Ma. Lourdes
Acosta-Alba; Hon. Cresente C. Paez; Hon. Maria Leonor Gerona-Robredo; Hon. Sol
Aragones; Hon. Pablo Nava III; Hon. Noel Villanueva; Hon. Cinchona Cruz-Gonzales;
Hon. Catalina Leonen-Pizarro; Hon. Lucy Torres-Gomez; Hon. Rosendo Labadlabad;
Hon. Samuel Pagdilao; and Hon. Emmi A. De Jesus.
The proposed statute provides the criteria and procedures for the accreditation of
NGOs and POs who are applying for government funding, which shall only be valid for
one (1) year and may be renewed yearly.
The bill requires accredited NGOs/POs to prove and provide evidence on the
following: years of existence; legal personalities; fund sources and financial condition;
place of business; successful track record; compliance to all reportorial requirements, nonexistence of a conflict of interest and nepotism; and legitimacy and commitment to public
service.
It mandates the Department of Social Welfare and Development (DSWD) to act as
Central Accrediting and Repository Agency for NGOs seeking to be entrusted with
government funds.

The measure also provides penalties for non-completion of the program or projects
and failure to liquidate government funds releases and for the release of public funds by
the National Government Agencies (NGAs) to unaccredited NGOs/POs.
Penalties shall range from suspension of accreditation, revocation of accreditation
or disqualification from obtaining programs and projects, from any government agency,
without prejudice to further civil or criminal liabilities.
Any government agency that releases public funds to unaccredited NGOs/POs shall
be liable to administrative, civil or criminal liabilities under relevant laws.
The proposed law limits the types of programs and projects to those that the
government is not to undertake which include, but not limited to, any undertaking that
involves construction, maintenance, operation and management of infrastructure projects
and of livelihood programs and projects.
Furthermore, the bill makes NGOs and POs eligible to participate in the
procurement of goods and services as contractor and enhances the transparency of the
procurement process by inviting the representatives of the Commission on Audit (COA)
and some observers in the process by the Bids and Awards Committee (BAC).
Another salient provision is requiring all related information to be posted in public
information boards (PIBs) and in the websites of the Government Organizations, NGOs
and POs, and the Philippine Government Electronic Procurement System (PhilGEPS).
Likewise, the bill requires the concerned government agencies, in coordination with
the NGO?PO representatives, to monitor the proper usage of government funds entrusted
to the organizations, the proper implementation of the subject programs and projects, the
proper distribution of intended beneficiaries, and compliance with time schedules for the
completion of programs and projects. (30) dpt