COA Censures OVP for Overlooking Vetting and Monitoring in "Mag Negosyo 'Ta Day" Program

The Commission on Audit (COA) has identified significant lapses in the Office of the Vice President's (OVP) implementation of its "Mag Negosyo 'Ta Day" (MTD) program, highlighting the failure to conduct required inter-agency evaluations of beneficiaries. According to the 2024 audit report released recently, none of the 138 selected beneficiaries—comprising 128 individuals and 10 non-government organizations (NGOs)—underwent the mandated assessment for the feasibility and economic viability of their proposed business ventures.

The audit emphasized the absence of evaluations from the Department of Trade and Industry (DTI) and the Philippine Deposit Insurance Corporation (PDIC), two agencies whose involvement is expressly stipulated in the MTD Manual of Operations, a guideline established by the OVP itself.

Per the program's operating manual, all beneficiaries must submit project proposals that are subject to rigorous review to ensure potential success. Item B, Section 7 (a) of the manual mandates that beneficiaries complete capacity building activities, including financial literacy and skills training provided by DTI and PDIC, prior to submitting proposals within five working days.

"The feasibility and economic viability of the project proposals of the 138 beneficiaries, both individuals and NGOs/CSOs, were not reviewed by the PDIC and DTI due to the absence of any evaluation or assessment report," the audit team noted. Furthermore, the report revealed that no formal agreements were established by the OVP to assign evaluation responsibilities to either agency, effectively blocking their participation.

These assessments are designed to safeguard public funds by confirming that the financial aid distributed will genuinely support sustainable business startups rather than result in wasted resources.

Under the MTD framework, individual beneficiaries receive ₱15,000 in cash, while group beneficiaries are allocated funding based on membership size: ₱100,000 for groups with up to 20 members, ₱150,000 for 21 to 100 members, and ₱200,000 for groups exceeding 100 members. Initial recommendations for funding approval lie with the OVP Director of Operations, with final decisions resting with the OVP chief of staff or a designated assistant in their absence.

In addition to these evaluation gaps, auditors found that monitoring efforts were insufficient. Only 11 out of 83 beneficiary cases sampled had undergone mandated home visits three months post-fund disbursement—a critical requirement under the program's Manual of Operations. The COA warned that without systematic monitoring, the OVP cannot ascertain whether the cash assistance meaningfully contributed to improving beneficiaries' livelihoods.

"To properly evaluate and ensure that seed capital facilitates micro-enterprise growth, regular monitoring and evaluation must be conducted and documented," the report stressed.

Responding to the audit findings, the OVP sidestepped the DTI and PDIC assessment requirements by introducing an internal "Project Assessment Tool" designed to replace the previous inter-agency review process. This move transfers evaluation responsibilities from external experts to OVP personnel, though the effectiveness of this new tool remains to be seen.

The COA report highlights critical shortcomings in compliance and oversight within the OVP's flagship livelihood initiative, underscoring the need for stricter adherence to established protocols to protect and maximize public resources.