The Commission on Audit (COA) has flagged the Office of the Vice President (OVP) for several deficiencies in the implementation of its flagship livelihood initiative, "Mag Negosyo ’Ta Day (MTD)." The state auditors cited entrepreneurial program issues in beneficiary selection, project evaluation, and the delayed liquidation of funds.
In its 2024 annual audit report, COA noted that while the OVP received an unmodified opinion on its financial statements, the agency failed to assess the viability of business projects supported through seed capital grants under the MTD program.
From January 1 to September 30, 2024, the OVP released ₱3.42 million in cash assistance to 138 beneficiaries—₱1.92 million to 128 individuals and ₱1.5 million to 10 non-governmental and civil society organizations.
However, auditors found that none of the beneficiaries’ business proposals were reviewed by either the Department of Trade and Industry (DTI) or the Philippine Deposit Insurance Corp. (PDIC), contrary to program guidelines that require their evaluation.
COA added that the OVP had no written agreements with the two agencies detailing their roles in screening and endorsing proposals.
The audit also uncovered gaps in beneficiary vetting; eight of the 128 individual recipients lacked barangay certifications confirming they had no derogatory records.
Oversight issues likewise surfaced in project monitoring. Of the 83 sample beneficiaries COA checked, only 11 were visited by the OVP within the prescribed three-month period following the release of funds. Fourteen beneficiaries were not visited at all.
“The OVP has only visited 11 beneficiaries for monitoring after three months upon the release of funds, while the remaining 72 beneficiaries were visited either before or after the required period for monitoring or none at all,” COA said.
Auditors stressed that regular monitoring is essential to ensure seed money is used productively and to determine whether the assistance helped beneficiaries develop sustainable livelihoods or improve their socio-economic status.
COA also flagged the delayed liquidation of financial assistance totaling ₱465,000 for 31 individuals and ₱1.65 million for 11 NGOs/CSOs, with delays ranging from two to 154 days.
“Financial assistance granted to 31 individuals and 11 NGOs/CSOs … were not liquidated on time,” the report stated.
