Philippine Red Cross Issues Statement on Alleged Financial Irregularities

The Philippine Red Cross, one of the most active organizations who helped most areas of the Visayas affected by super typhoon Yolanda through their relief and reconstruction efforts denies the allegations on alleged financial irregularities which are entirely baseless.

Philippine Red Cross

According to a news report aired on TV Patrol on Wednesday, a Philippine Red Cross accountant identified as Jeric Sian wanted an audit of some irregular transactions of the Philippines Red Cross.

Here are some of the allegations of irregular transactions mentioned by Jeric Sian:

  • Media placement fees of around P30 million for its Million Volunteers Run.
  • Money placement of more than P6 million to Deutsche Bank as PRC Fund Manager
  • Breakdown of expenses of Pang during her Geneva travel amounting to P 191,602.50
  • Membership Insurance Contract with PGAI worth P93 million
  • Payment for PRC website that costs P5 million
  • ‘Magic Sing’ karaokes and baller IDs in the name of Richard Gordon during his presidential campaign

According to the lawyer of the Philippine Red Cross, Atty. Oscar Palabyab, the Board of Governors of PRC had looked into the matter. He also (–foul word(s) removed–)ured that the allegations made by Sian were seriously examined by the board and an investigation was conducted based on evidence provided by the accountant.

Here’s the Official Statement of the Philippine Red Cross on its Website:

Statement in response to the allegations against Philippine Red Cross aired on Abs-Cbn Evening News (TV Patrol)

On December 10th, ABS-CBN evening News (TV Patrol) broadcast a news item highlighting alleged financial irregularities in the Philippine Red Cross. The Red Cross would like to express dismay and concern over the accuracy of these allegations which are entirely baseless.

The news report claimed that there were anomalies in the expenditures of the Red Cross. The allegations were largely directed at the organization’s Secretary General, Gwendolyn Pang. They stem from a long-running and malicious campaign orchestrated by disingenuous members of the Red Cross who have since been dismissed. Ms. Pang is subsequently taking legal action against some of these individuals on the grounds of libel.

All of the allegations have been rigorously investigated on two separate occasions in accordance with the Philippine Red Cross rules and procedures relating to accountability and transparency. Following the investigation Ms. Pang was fully exonerated and the Philippine Red Cross Governing Board has expressed its full confidence in her continued leadership of the organization.

The Red Cross takes financial transparency extremely seriously and the organization’s accounts are regularly audited by a reputed international independent auditor. The ill-intentioned people behind this malicious campaign have, as a last resort, been attempting to use elements of the media to discredit Ms. Pang. These accusations have not only brought her personal distress, they serve to belittle the efforts of the thousands of Red Cross volunteers from across the country who are currently engaged in the humanitarian response to Typhoon Yolanda, the most devastating natural disaster to have ever struck the Philippines.

Continued public support is vital at this time to sustain emergency relief and long term recovery efforts. The Red Cross remains firmly focused on alleviating the suffering of victims of this terrible tragedy. The organization will make no further comment on these allegations which it considers to have been fully and satisfactorily resolved.

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