‘P2.1-B DOST project for SMEs aboveboard’

MANILA, Philippines - The Department of Science and Technology (DOST) says that there are no irregularities in its P2.1-billion project for micro, small and medium enterprises (MSMEs).

DOST undersecretary for regional operations Carol Yorobe said the specific cases cited by the Commission on Audit (COA) in its recently released 2014 audit report were isolated cases beyond their control.

Yorobe said funds under the Small Enterprise Technology Upgrading Program (SETUP) were not lost, as the DOST is still pursuing MSMEs that have failed to refund the assistance rendered by the department.

In its latest report, COA scored the DOST for “inadequate and ineffective evaluation of project proposals and lax enforcement of the MOA (memorandum of agreement) provisions” that resulted in delinquent accounts aggregating to P74.606 million.

Yorobe said instances of delinquencies could not be entirely avoided, as some project proponents suffered losses due to calamities and other similar events.

She stressed, however, that the government has taken legal action to recover the funds released to proponents. She said they are in coordination with the Office of the Solicitor General with regard to the cases.

“The program’s monitoring system follows strict guidelines to ensure compliance by proponents and allow the enforcement of the provisions stated in the MOA they sign before the assistance is given,” she said.

Yorobe added that SETUP – which supports around 3,000 MSMEs per year – has a rigorous evaluation process involving experts in different fields.

“Experts are the ones who evaluate the proposals or the technology needs assessment of the proponents of SETUP,” added DOST assistant secretary for countryside development Urduja Tejada.

Started in 2002, SETUP provides technical assistance to qualified MSMEs across the country. Project proponents are required to refund the amount released by the DOST for the procurement of equipment for a period set by the MOA with the government.