Lost somewhat in the hullaballoo over Reyes, Garcia and the continuing announcements and accusations of Heidi Mendoza is the source of the commingled funds. In this case, funds were sourced from the United Nations and the United States (via the Balikatan fund).
One of the serious issues that is rarely remarked on when it comes to foreign aid is that unless the aid is properly tracked it can easily be lifted and utilized for private purposes. This is well substantiated by the machinations that the Chiefs of Staff of the Armed Forces of the Philippines went to repurpose the funds for personal use. The most glaring examples comes with the $5M disbursement from the United Nations. The check was picked up and cashed from the United Nations, but not used for it’s stated purpose. Instead the funds ended up in the pockets of some generals and their wives. The question that we haven’t asked is why didn’t the United Nations audit the use of the aid? That the AFP will use whatever source of funds they can get their hands on is unsurprising. That the UN did not know where their funds ended up is disconcerting. Because the fact is what is on-going here is by no means a unique case.
The United States helps fund the Balikatan joint exercises. Part of that funding was rerouted into the PCDA and handed over to various generals at will. Again, that the US is helping fund is laudatory, that they are not following up on the use and ultimate destination of their funds is disturbing.
Developing countries like the Philippines, especially in the non-profit world (an arena I fear is going to be negatively impacted by news like this), are reliant on international fund and support. The fact is there is just not enough capital within the country to support a lot of aid programs. However, just because aid is provided does not mean it should disappear from mind. The fact is that kind of lax oversight on the part of the funding entity allows corruption like this to flourish. I am not blaming the funding agencies, I am saying that their lack of oversight contributes to the domestic problem of graft and corruption. When these entities become willing partners, not through conscious decision but through lax and non-existent follow-up and audit procedures, it allows impunity to additionally flourish. The fact is, when a system supports malfeasance through faulty systems, people will take advantage. Corruption in aid is both a domestic and international issue. While we are trying to fix our issues, as well the international agencies should be evaluating how they track funding.
We are always hearing that the developed world has a responsibility to help the developing world. In this I actually agree. However, there has to be a level of responsibility as well in the disbursement and tracking of the funding. Absent that, they are actually contributing to impunity in the developing world. As well, this is hardly fair to the constituents of the United States and the United Nations (in this instance). This is but a small example of an issue that probably exists elsewhere in much larger quantities. As someone pointed out, if that is going on here, imagine how it is in other countries that have even worse oversight than us.
In the process of trying to good, new problems are being created.
