SEC takes a closer look at foundations
MANILA, Philippines – Due to the recent pork barrel anomalies associated with non-government organizations (NGO), especially foundations, Securities and Exchange Commission (SEC) Chairperson Teresita Herbosa said they are now taking a closer look at foundations.
SEC defines a foundation as “a non-stock, non-profit corporation with funds established to maintain or aid charitable, religious, educational, athletic, cultural, literary, scientific, social welfare, or similar activities primarily through extending grants or endowments.”
Chairperson Herbosa mentioned in a meeting with the media on Friday, September 13, that ever since the year 2000, the SEC has asked foundations to submit financial statements, sources of funds and disbursements. However, she also noted that “there is no law that lets us monitor foundations except terrorist financing.”
That is why this year, 2013, the SEC has asked the foundations to submit more detailed statements.
“Where did they get the money? Is the source local or foreign? Where was it spent? What is the breakdown of operation expenses?” she narrated.
The SEC also said they became more vigilant. They announced and posted in their website early February that they warned the public “not to deal with foundations if not checked by the SEC.”
She also hoped that SEC computer projects will be launched soon. This could assist the SEC by alerting if a foundation has incorporated many times.
She noted that this is more efficient or otherwise, they will “just rely on complaints.”
At present, the SEC has 259 thousand registered NGOs—of which, 20 thousand are foundations. – Rappler.com
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