P19 billion in CCT didn’t go to poor

The Asian Development Bank (ADB) estimates that at least P19 billion of this year’s P62.3-billion budget for the Aquino administration’s key anti-poverty program, called conditional cash transfer (CCT), did not go to intended beneficiaries—the poorest of the poor among the country’s 100 million population.

In a study called “Confront Climate Change to Make Growth More Inclusive?” the ADB noted a huge 30-percent leakage in the implementation of the CCT, also known as the Pantawid Pamilyang Pilipino Program (4Ps).

The ADB said the government should improve the selection process for CCT program beneficiaries.

“Improvements are needed in the program’s targeting system to reduce an estimated leakage rate of 30 percent,” the study said.

“While the long-run impacts of the program on poverty have yet to be analyzed, it is expected to improve the employability of the poor, enhancing their resources and capacity to respond to environmental shocks,” the ADB said, however, on the value of the program.

But Social Welfare Secretary Corazon Soliman said the ADB admitted using old data to come up with the report on the CCT.

“ADB has already issued a clarification saying that the paper they published referred to studies from 2013 and 2011, which in turn used data from 2009,” Soliman said.

Measures and systems continue to be enforced to maintain a clean database for the program.

“We have a Grievance Redress System [GRS] that captures and processes complaints about the program and the beneficiaries. Through this, we have already delisted more than 77,000 beneficiaries,” she said.

She also added that the DSWD conducts regular spot checks nationwide and consultations with different partner-agencies and organizations to help improve the implementation of the program.

“It has been six years since the data being referred to were generated. Then, we only had 700,000 household-beneficiaries. Now, we have expanded to more than 4.4-million. A number of steps have already been taken to address the problems that arose when it [program] was still being started.”

Different institutions, including ADB, have even recognized the department’s efforts in line with this,” she added.

In an earlier study, the ADB also noted that poorly designed targeting systems under the Aquino administration’s CCT have resulted in high leakage and under-coverage rates, low program impact, and wasted public resources.

The ADB study stated that, irrespective of their being conditional or unconditional, direct cash transfers to poor households could face challenges.

“Even if poverty reduction is the central policy objective, it does not necessarily support direct cash transfers to the poor. Some may argue that, if economic growth is the main engine of poverty elimination, it would be better to spend scarce public resources for other services, such as infrastructure, for higher growth,” the study noted.

Others may challenge cash grants because these may give disincentive for people to work and discourage self-reliance among recipients.

“However, infrastructure and some public services often fail to reach the poor or, at least, disproportionately benefit non-poor, and may be inefficient and/or prone to corruption,” it said.

The CCT is the only poverty-reduction program of the Aquino administration that would be funded with P66 billion in next year’s budget from P62.3 billion this year.

According to Soliman, the CCT, besides benefitting 4.5 million households, also sends 4.2 million children to schools.

Critics of the program, however, said it has been used to buy political patronage from the poor.

The CCT funding grew from the P9-billion allotment under the administration of former President Gloria Arroyo, which conceptualized the program.

Critics said Soliman had used the 4Ps and the DSWD budget to even hide the true state of poverty in the country.

For instance, during the five-day visit of Pope Francis in the country, street people were treated to Chateu Royale Resort in Batangas at government expense to hide them from public view during the holy event.

The COA, in a 2013 audit, also raised red flags on the CCT such as double entries, data errors, delayed cash releases and liquidation issues.

“Duplicate names for 4,320 beneficiaries in the 4Ps payroll in the amount of P46.502 million for CY 2013 not only resulted in incurrence of additional costs for the double payment of grants, but also misstated the Cash and Donation accounts,” COA said.

The COA report said more than P2 billion in funds from the CCT program were either given to unqualified recipients.

The audit also showed P50.15 million was given to 7,782 non-existent household beneficiaries.

Aside from this, DSWD also has yet to account for P3.18 billion in unliquidated funds from 2008 to 2012 under the CCT program. Luis Leoncio