Audit: Only 16 of 219 air operators shared P300M cash aid from CAAP

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ONLY 16 air operators out of 219 included in the list of “critically impacted businesses” received a share in the P300 million cash assistance released by the Department of Transportation (DOTr) in 2020 and distributed by the Civil Aviation Authority of the Philippines (CAAP) in 2021.

This was revealed in the 2022 report on the financial transactions of the CAAP released by the Commission on Audit last August 30.

“The audit team conducted an in-depth examination of the amount of financial assistance granted to each beneficiary. We noted that only 16 air operators out of 219 critically impacted businesses benefited from the assistance program in the total amount of P300 million,” the COA said.

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None of the 16 chosen air operators were named in the audit report but based on the breakdown of the subsidies granted, three got the lion’s share of the money.

The audit revealed that the 16 also continued receiving cash assistance from the CAAP beyond the six-month period set under RA No. 11494 or the Bayanihan to Recover as One Act for the intended beneficiaries to avail of the government cash relief.

Based on audit documents, “Air Operator 7” received P77.38 million in the first six months and received an additional P15.25 million after the allowable period or a total of P92.635 million.

“Air Operator 13” was given P70.5 million within the specified period and another P13.74 million beyond it or a total of P84.24 million.

“Air Operator 2” was granted P59.8 million during the prescribed six-month period and P11.34 million more after or a total of P71.14 million.

Combined, the three cornered P248.011 million or a whopping 82.67 percent of the P300 million government aid.

“Scrutiny of the documents revealed that the 16 beneficiaries availed of the grant for seven to eight months, exceeding the allowed six-month period under Section 4 (gg) (2) of RA 11494. The excess financial assistance amounted to P52.875 million,” the audit team said.

The COA said the amount released to aviation companies beyond the six-month period is “deemed irregular.”

It recommended that the CAAP require the recipient air operators who received sums after the six-months allowable period to refund the entire P52.875 million.

 

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