“PVAO has no authority to do that,” retired brigadier general Rodrigo Gutang, who called the move alarming, told GMA News Online in a phone interview.
The VFP is the umbrella organization of all veterans’ groups in the country and Gutang is the secretary of the Cavalier Association of Veterans, one of the VFP’s member organizations.
Gutang likewise questioned the creation of the Veterans Affairs Management Division that is tasked with directly monitoring the activities and assets of the VFP.
“The government does not spend any money for VFP. We receive no appropriation from Congress. Hindi kailangan i-take over,” Gutang noted.
He added that Defense Secretary Voltaire Gazmin is using the new VFP constitution approved last year to confuse their members.
No takeover
Meanwhile, retired lieutenant general Ernesto Carolina, PVAO administrator, denied the reported takeover.
“[The takeover] is not true,” Carolina said in a phone interview.
He explained that the Defense secretary is merely doing his job. “By law, VFP is under the supervision and control of the secretary of National Defense,” he explained.
He noted that the PVAO, specifically the Veterans Affairs Management Division, is an instrument that the DND uses to monitor the transactions of the VFP and check for abuse.
“Many, many years napabayaan. For more than 20 years, the same group of people manages the affairs,” Carolina said. Retired colonel Emmanuel De Ocampo has been president of the VFP since 1985.
Carolina pointed out that VAMD supervises the VFP’s properties and resources in the stead of the the Defense secretary. “The supervision and management of current VFP officers were not able to create the optimum revenues,” Carolina opined.
Unregulated revenues?
Carolina said the PVAO is considering regulating the earnings of the VFP, particularly those coming from a sprawling 50-hectare prime property in Taguig City.
“They are earning marginally from the prime property in Taguig. They are not accounting [for] the money. ‘Yung earnings, ginagawang budget nila,” Carolina said.
The VFP reportedly rakes in P130 million a year from renting out the Veterans Industrial Complex, with earnings going unchecked.
However, Gutang argued that the defense department already regulates VFP’s annual budget. “The budget of the VFP is approved every year by the Department of National Defense before we can spend it. There is check and balance.” Gutang stressed.
Yet, according to Carolina, what prompted the PVAO to place the VFP under scrutiny is the group’s lack of financial reports, biddings or budget approvals.
A Commission on Audit Report on VFP in 2012 indicated mismanagement and deficiencies in the group’s accounting of funds.
“The balance of the Property, Plant and Equipment account amounting P174.4 million with a net book value of P168.9 million as of December 31, 2012 is of doubtful validity due to the absence of subsidiary ledgers, property cards, and sufficient documents to support the value of the building and condominium,” the report read.
Around P75.1 million entered in VFP’s books had deficiencies, while VFP officers and employees received higher salaries and allowances than allowed by law.
“Salaries and allowances of VFP Officers and Employees amounting to P5.75 million were not in accordance with RA 6758 or the Compensation and Position Classification Act of 1999, and Compensation System of the DBM,” the report read.
“There were significant lapses in the granting and settlement of cash advances,” the Audit commission added.
Likewise, the COA report showed that VFP did not bid out the procurement of goods, a recurring expense totalling P10.27 million.
VFP reforms
To provide a solution for the mismanagement issues the VFP is facing, Carolina said the government had to implement reforms in the system, among those, the creation of the VAMD.
“To institute reforms [in the] VFP, it took so many years. They were not cooperative. There were many deficiencies noted in a COA report which covers 2010 to 2012,” Carolina said.
“It took us two years to craft by-laws. We presented it to the House committee on veterans affairs, in consultation with VFP and other veteran organizations. In October 2013, new by-laws were completed,” he said to answer Gutang’s claims that there were no public consultations on the new VFP constitution.
According to Carolina, an election code for the VFP is expected to be completed by November this year to counter the “monopoly” by a handful of members in top positions.
There will also be an information campaign to encourage non-member veterans to join the VFP. Currently, only 30 percent of veterans – roughly 40,000 – have joined the VFP.
“[Reform] is normal in any organization na napapabayaan. Some people were benefiting from this wrong set up. They are [now] resisting,” he said.
He said that without the reforms, “VFP does not represent the voice of the veterans.” — with reports by Andrei Medina/JDS, GMA News
