Construction workers on top of an unfinished building in Makati on August 24, 2022. George Calvelo, ABS-CBN News/File 

MANILA – The Commission on Audit (COA) has flagged the Department of Labor and Employment (DOLE) for issues in its cash-for-work program.

Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) is the DOLE's flagship emergency employment program for displaced and disadvantaged workers in the informal sector.

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In its annual audit report for 2023, COA said DOLE achieved the objective of the TUPAD program of "giving opportunity for emergency employment for displaced/underemployed workers and underemployed poor."

State auditors noted the DOLE "significantly utilized" P15.87 billion or 88.11 percent of its approved budget of P18.01 billion for the implementation of TUPAD in 2023. DOLE employed some 2.98 million underemployed poor/displaced workers.

However, COA found cases of excessive payments/availment of 887 beneficiaries amounting to around P4.9 million due to "lapses in the system." 

"Various beneficiaries availed the TUPAD program twice during the year using either their maiden names and married surnames but the same contact numbers and addresses; or different birthdates, misspelled names and numbers (mostly one letter/number was incorrect) but the same addresses," COA said of NCR.

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In Ilocos Region, the non-detection of duplication of beneficiaries were linked to the "high volume of TUPAD beneficiaries and deficiencies in the control features of the TUPAD Online System" used in processing applications.

As for Davao Region, the TUPAD focal person said the multiple availment could have been due to typographical errors despite a system introduced by the DOLE Central Office. They started using VLOOKUP in 2022 for double verification after a TUPAD worker tried to claim another payout in a different location.

"The noted deficiencies could have been avoided had there been effective monitoring of the data on prior availments that can be accessed by the concerned offices, and/or effective control measures that could prevent such occurrences considering that this is a recurring deficiency," the audit team said.

COA recommended and DOLE agreed to require concerned offices to conduct further investigations and provide justification/explanation on the double availment.

The identified beneficiaries with double availments are also required to refund the overpayment of TUPAD wages if necessary.

COA also told DOLE to create additional control measures by adopting an automated check/detection function to detect and flag possible duplication and exhaust all remedies to initiate appropriate action to avoid double or multiple availment especially in NCR.

UNQUALIFIED BENECIARIES GET AID

State auditors found that DOLE's Regional Offices in Cagayan Valley and Northern Mindanao granted assistance to 613 "unqualified beneficiaries" totaling P3,143,600.

Validation showed 609 beneficiaries were from Cagayan province and were either "non-resident, did not render service, government employees and students" which violated the qualifications set in DOLE Department Order No. 239 series of 2023.

"Phone verification on these individuals was also conducted based on the mobile phone numbers provided in the profile. The majority of the mobile phone numbers were either incorrect or cannot be reached while those who answered were different individuals and not the beneficiaries themselves," COA said.

"Confusion arose when the names of the beneficiaries who used the mobile numbers were not known to the holder/owner," it added.

Post-audit liquidations in DOLE Regional Office X (Northern Mindanao) showed four unqualified beneficiaries, identified as barangay officials, who received P14,600 in aid.

"The inclusions in the paid payrolls of unqualified beneficiaries amounting to P3,143,600.00 were deemed irregular as defined in Section 3.1 of COA Circular No. 2012-003," COA said.

The audit team recommended and DOLE agreed to instruct the concerned Regional Offices to exert more effort to require the unqualified beneficiaries to submit valid documents to prove eligibility or recover the payment of wages to beneficiaries.

In response, DOLE said its Regional Office II instructed TUPAD coordinators and other employees directly involved in implementation to strictly follow procedures.

"On the 508 beneficiaries who were non-residents-300 beneficiaries who received their salaries amounting to P1,850,100.00 were found to have residency details consistent with the information provided in the master list duly signed by authorized personnel. The validation of the remaining 208 beneficiaries with salaries amounting to P1,146,600.00 is still in progress," DOLE explained.

Regional Office X issued a memorandum dated February 8,2024 to its field offices on the "strict implementation of guidelines" to ensure eligibility of beneficiaries, correct and consistency of information of supporting documents and prompt submission of complete documentation.

"With regard to the unqualified beneficiaries totaling P14,600.00, the audit observation does not indicate the details of the beneficiaries, hence, they will coordinate with COA," DOLE said.

COA also found unclaimed TUPAD financial assistance amounting to P41,534,353.77 despite the regional offices tapping the services of Money Remittance Centers to ensure speedy release.

Of the total, P2.76 million were returned to the Regional Office V by the money remittance center. Meanwhile, P38.76 million from the Regional Office V and XI are still with the money remittance centers.

DOLE said Regional Office V made a request to the money remittance center to refund the amount.

"Inadequate monitoring strategies employed by the ROs in reaching out to the beneficiaries resulted in accumulation of unreleased wages. Moreover, the unclaimed financial assistance in the possession of MRCs may be misappropriated/utilized and, thus, do not support the government's efforts to immediately provide interventions to aid target beneficiaries," COA said.

COA recommended DOLE to direct all Regional and Provincial Employment Focals, Provincial TUPAD Coordinators and Chief of Provincial Offices to extensively monitor the unclaimed salaries and wages of beneficiaries and ensure proper communication.

DOLE was urged to demand the return of unclaimed amounts, implement control measures to set the allowed number of days for claiming financial aid and include a provision in the internal guidelines on the retention of the period or deadline of holding the benefit before returning to the Bureau of Treasury.