Philippines struggles to keep typhoon aid, donations graft-free

by Reuters
Friday, 22 November 2013 16:21 GMT

A student from the Polytechnic University of the Philippines drops loose change into a five-gallon mineral water container which has been converted into a coin bank for victims of Typhoon Haiyan, known locally as Yolanda, at the university grounds in Manila, Philippines, November 18, 2013. REUTERS/Romeo Ranoco

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(Corrects to remove eighth and ninth paragraphs, which incorrectly characterized Tricare and misquoted a Tricare employee about the number of insurance claims filed after the typhoon)

By Karen Lema and Rosemarie Francisco

MANILA, Nov 21 (Reuters) - As millions of dollars pour in for more than four million left homeless by a typhoon in the central Philippines, authorities are grappling with a familiar problem - how to stop fraudulent claims and prevent greedy politicians taking advantage.

Typhoon Haiyan smashed through the country on Nov. 8, laying waste to just about everything in its path, and killing more than 4,000 people.

Nearly 13 billion pesos ($298 million) in cash and relief goods have so far been pledged by countries and donor groups to an overwhelmed government that was criticised for its slow response in the first few days after disaster struck.

The World Bank and the Asian Development Bank have committed a total of more than $1 billion in grants and emergency loans to support reconstruction and relief efforts.

Add to that the millions of pesos raised by the private sector, with Filipinos working across the globe gathering friends for fund-raising activities, and you have a lucrative target for scammers and unscrupulous public officials in one of the most corrupt countries in East Asia.

The Philippines comes in at 105 out of 176 countries in Transparency International's corruption perceptions index, with the cleanest country, New Zealand, at number one.

"It is a big issue in the international aid community, especially insofar as international NGOs are concerned," said Budget Secretary Florencio Abad, when asked about bogus aid agencies and scams.


Philippine disaster officials this week warned donor agencies and the public about two individuals - including one using the surname of President Benigno Aquino - who have been soliciting aid for typhoon victims on behalf of the defence minister.

"We would like to warn the public to be vigilant and not fall to this modus operandi by unscrupulous individuals," the Department of National Defence said in a statement.

A scandal over lawmakers' misuse of "pork barrel" funds has become the biggest crisis of Aquino's three-year rule, tainting his image as a corruption fighter and undermining his ability to push economic reforms.

This week, Manila launched an online portal called FAiTH to provide information on donations in answer to concerns that aid money might once again end up lining pockets of local officials.

"The (pork barrel) scam has put everyone on high alert," said Vincent Lazatin, executive director at the Transparency and Accountability Network.

Social Welfare Secretary Corazon Soliman said fraud went hand in hand with natural disasters, as was the case with Tropical Storm Washi in 2011, Typhoon Bopha last year and an earthquake in central Bohol province last month.

"There are people who take advantage of the good heart of individuals, especially those who only want to give small amounts but are embarrassed to go to foundations," she said.

"For me, every cent counts, so they should give to those organisations they know."

(Additional reporting by Michael Pell in Florida; Editing by Nick Macfie and Jeremy Laurence)

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