The Philippines

In response to a congressional request, GAO reviewed U.S. development and food assistance provided to the Philippines during fiscal years (FY) 1980 through 1985, specifically: (1) governmental and nongovernmental organizations involved in distributing U.S. assistance and the amounts each distributed; (2) the organizations' target populations; and (3) the potential for channeling greater amounts of aid through private organizations. GAO also examined how well the Agency for International Development (AID) managed its programs in the Philippines and reviewed allegations AID received regarding program fund misuse.

GAO found that: (1) the U.S. government provided $386.2 million in development and food assistance to the Philippines between FY 1980 and FY 1985, 65 percent of which Philippine government agencies distributed and 35 percent of which private voluntary organizations distributed; (2) the rural poor were the main recipients of program funds; (3) government agencies used the funds to improve their ability to achieve development objectives; (4) private organizations used the funds on small-scale projects to reach specific target groups; (5) although AID is managing the programs according to project accounting controls, it inadequately monitors the private organization projects; and (6) AID received only five allegations concerning the misuse of its funds between January 1984 and October 1985 and closed its investigations of three of the allegations without taking action.