Cacdac: COA questioned only 8% of DMW budget, denies irregularities

(DC file photo)

MANILA – Department of Migrant Workers (DMW) Secretary Hans Leo Cacdac clarified that the Commission on Audit (COA) raised questions involving only 8 percent of the agency’s Php 1.2-billion budget for fiscal year 2025, rejecting reports suggesting that the entire allocation was flagged for irregularities.

In an interview Monday, Cacdac said some news reports had misrepresented the scope of COA’s observations, particularly those concerning documentation and procedures for providing financial assistance to distressed overseas Filipino workers (OFWs).

“Misleading yung headline, PHP1.2 billion ang budget namin and the headline appears to say na PHP1.2B ang kinequestion ng COA which is not the case; only 8 percent of our budget is being questioned,” Cacdac said.

He emphasized that the DMW received an unqualified audit opinion from COA for fiscal year 2025, indicating that its financial statements were fairly presented in accordance with applicable accounting standards.

Cacdac acknowledged that state auditors identified areas requiring improvements in the agency’s internal processes, particularly in evaluating applications for financial assistance.

He explained that COA recommended strengthening documentation and assessment procedures used by labor attachés and other evaluating officers when determining whether an OFW qualifies for assistance.

“Ngayon of course COA make some observations on our processes, on our systems, napansin lang nila na yun nga baka kailangan i-tighten, baka kulang yung assessment ng labor attache natin o evaluator para sabihing gusto siyang bigyan ng financial assistance kasi distressed workers,” he said.

The DMW chief assured that the department would comply with the recommendations but maintained that the audit observations did not automatically indicate corruption.

“And so we would abide by the recommendations of the COA. However, that does not necessarily mean may katiwalian,” he added.

Cacdac said the department continues to strengthen financial controls and safeguards to ensure that government assistance reaches qualified beneficiaries.

He noted that decisions on financial aid are handled by trained officials who assess the circumstances and credibility of workers seeking assistance.

According to Cacdac, evaluators examine supporting documents, including deployment and return dates, to determine whether an OFW’s employment was prematurely terminated due to distress or other legitimate circumstances.

“Siyempre kung mapapansin mo yan, kung inconsistent or nangbobola ang worker sa kanyang sinasabi kung siya inapi o nagkaroon ng problema abroad, kitang-kita naman kung naudlot ang employment kasi nandoon ang date of deployment, nandoon ang date of pag-uwi, kitang-kita mo kung naudlot o hindi tinapos ng worker ang kanyang kontrata,” he explained.

He added that when a worker returns before completing a contract, labor attachés and evaluating officers must establish the circumstances behind the early return and determine whether financial assistance is warranted.

“And therefore, there must be a reason why hindi niya natapos ang kontrata niya at doon pumapasok ang inquiry at evaluation as to whether distressed siya kaya siya na-uwi. And so we leave it to our labor attachés and evaluating officers to do this,” Cacdac said.

The DMW secretary reiterated the agency’s commitment to improving its administrative guidelines and complying with COA recommendations.

He also clarified that the audit observations were initially raised in July and had already undergone the standard post-audit submission process before becoming public.

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