COA finds payout lapses in P200-M disaster shelter program

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

December 18, 2025 | 6:29pm

MANILA, Philippines — The Commission on Audit has flagged several lapses in a P200-million shelter assistance program for disaster victims, saying the government's weak checks, delayed payouts and risky cash handling put public funds — and their intended beneficiaries, mostly typhoon victims — at risk. 

In an audit report released in early December, state auditors said the Department of Human Settlements and Urban Development (DHSUD) failed to properly verify eligible beneficiaries for emergency shelter aid under its Integrated Disaster Shelter Assistance Program.

The program provides cash assistance to families whose homes were damaged by typhoons and other disasters. It grants P30,000 to households with totally damaged homes and P10,000 to those with partial damage. COA examined the program’s emergency response phase, funded under the 2024 national budget.

No house-to-house checks

Auditors said DHSUD personnel did not independently inspect damaged houses in several regions and instead relied largely on documents and beneficiary lists submitted by local governments.

In some cases, validators had no written authority to conduct inspections and followed no documented procedures, the audit found. Barangay officials and beneficiaries interviewed by auditors said they could not recall DHSUD personnel visiting their homes, remembering only staff from other agencies such as the Department of Social Welfare and Development and the National Housing Authority. 

COA said the lack of field validation cast doubt on whether payouts went to eligible families and whether the assessments of damage were accurate.

Delays stretched to months 

The audit also found long delays in releasing shelter aid, with processing times ranging from 59 to 186 days in Metro Manila — far beyond the program’s intent to provide immediate relief after disasters. 

COA said DHSUD had no clear deadlines for key steps such as validating beneficiaries, approving fund releases and distributing cash. These resulted in inefficient and slow payouts. 

“These delays defeat the program’s objective of providing immediate and provisional shelter support,” the audit report stated.  

Double payout flagged

Auditors flagged at least one case in Mimaropa where a beneficiary received shelter aid twice — once from DHSUD and again from the National Housing Authority — due to the lack of a system to check whether recipients had already received assistance from another agency. 

COA warned that without a centralized database or certification requirement, the risk of duplicate payouts remains.

While COA acknowledged the case may be an "isolated" incident, the duplication still points to "systemic weakness" in the program's controls. This increases the "risk of inefficient resource utilization and duplication of government assistance," the report stated.

The audit also raised red flags over DHSUD’s use of cash payouts, instead of digital payments or checks, despite government rules encouraging electronic disbursement.

COA said cash advances for shelter aid were handled by personnel who were not properly bonded, exposing public funds to loss or misuse. In some payout sites, multiple paymasters handled the cash distributions.

Auditors also cited missing or unclear photos of damaged houses, incomplete beneficiary forms, and missing documents to support payouts in several regions. 

DHSUD's response. COA said DHSUD agreed with the findings and committed to tighten controls. This includes setting clear validation procedures, authorizing validators through written orders, defining timelines for payouts and exploring digital payment options.