Monday, August 27, 2007

Pandora's Box - Show Me The Money!

A religious organization is fueled by tithes, contributions, and donations. In CFC, how the money is spent was managed by its leader, Frank Padilla. The sole authority to approve major expenses and disbursement of funds lay with him. As a religious organization, the use of tithes must be accountable to the members of its community. These were given in good faith, and are supposed to go towards the organization's evangelistic goals and missions. It is of important note that there has only been one real accounting made by CFC in its years of operation, the one spearheaded by Lito Tayag when he was a member of the council in the late 90's. Actually that was just an attempt, it was never completed.

This subject was actually opened up in a comment in a prior entry before I was ready to post on it. There were several comment inquiries as to where the money from the DOH funds that was discussed in a previous topic was going and if an accounting of it has been made. In fact, I think a keen commenter hit it right on the head of the nail with this comment:

"After twenty-six years in charge perhaps it's harder to resign and let others take charge than it first appears. No one who knows more than the spin really believes this is about GK."

So I ask, as of today, what is CFC's financial status?

This report was given by HO Director, Lito Tayag, during the MC Teaching Night on Aug 21, 2007. Lito Tayag is a Council Member who was formerly a partner in a major multinational accounting firm.


Questions to be asked and answered:

Who are the employees who have unliquided cash advances?

When were the bank loans taken out, and why?

Who are the 10 employees who retired?

If anyone out there has answers to these questions and can help "show me the money", you are welcome to email or comment.

Coming up next, The Ghosts From the Past that Haunt the Present: Emails and revelations about the Coops for Christ and attempts to borrow money from them.





14 comments:

acc WC said...

Further questions to be asked:

How long has these advances been outstanding and for what? Who approved and who is to follow up liquidation? If these have been outstanding for sometime now, what actions have been taken in the past?

Why is CFC heavily indebted while other similar religious groups are awash with cash? Who approved these loans and on what basis? When are these supposed to be paid? Did they have the cash flow projections to support payments?

Did these employees retire or resign? Have they completed the retirement minimum service credit to be entitled to retirement benefits? What is the retirement program of CFC Center employees? Is there a minimum service credit before they are entitled to retirement?

Anonymous said...

Unconfirmed list of some of the retirees

1. Lachie Agana
2. Tony Meloto (pls confirm with Bro. Lito Tayag)
3. Maribel D.
4. Maricar G.
5. Jack Burgoyne
6. ______ Burgoyne
7. Oca O.
8. ______ Padilla

Anonymous said...

If Maricar G. is Maricar Gatchalian -- she resigned and did not retire. Her email informing people about her resignation circulated on sometime middle of July after the launch of the Restoration. So she's not entitled to retirement nor separation benefits.

Anonymous said...

Why do we have so many full time workers? And are they really needed? Someone please look into our organization chart and manning complement and review. Our salaries and wages comprise 63% of our expenses. A heads up rationalization would effect a significant turnaround in our cash flow; the deficit cn be averted.

Carlos Yturzaeta said...

In 2003, i remember that the DEFICIT was P14 million and about 70% were traveling expenses.(BTW, can we have a list of those who travelled extensively abroad from 1996 to 2006?)

It looks like from 2003 to 2006, payroll started to overtake traveling expenses.

If CFC has no policy for retirement, then what is required by law applies. No retirement pay to those who have resigned and even those who retired but if there was no retirement plan, CFC just give what is provided for by the law.

Many of CFC's provincial heads and Manila Sector Heads do not receive any salaries at all.Some volunteers are even doing more work compared to full timers who only work during weekends mostly giving talks.

Anonymous said...

Maricar G is Maricar Gatchalian and she is in the list.

Mon de Leon is currently studying the manning complement to find out if there are areas where we can save on cost.

Anonymous said...

(". . . there has only been one real accounting made by CFC in its years of operation, the one spearheaded by Lito Tayag when he was a member of the council in the late 90's. Actually that was just an attempt, it was never completed") WHY DID THE ELDERS ASSEMBLY / BOE ALLOWED THIS IN THE PAST AND EVEN ELECTED THE SAME COUNCIL MEMBERS REPEATEDLY? ARE THEY NOT ALSO ANSWERABLE? I WOULD LIKE TO KNOW THESE EA/BOE DURING THOSE TIMES. THEY PROBABLY ONE OF THOSE THROWING BLOWS TO EITHER SIDE. SHAME ON THEM!

Anonymous said...

It looks like CFC will have to defend the DOH-GKag issue while GK will defend their financial disbursement at least from the donors or an audit firm (sgv as mentioned in the abs-cbn news tonight?). It seems that the problem is far from over.

Also looking forward what has transfired in the "CBCPs" meeting today.

Anonymous said...

"WHY DID THE ELDERS ASSEMBLY / BOE ALLOWED THIS IN THE PAST AND EVEN ELECTED THE SAME COUNCIL MEMBERS REPEATEDLY? ARE THEY NOT ALSO ANSWERABLE? I WOULD LIKE TO KNOW THESE EA/BOE DURING THOSE TIMES.

During Franks leadership, BOE (Board of Elders)was largely ignored because "advisory or recommendatory" lang ang role nila. May magagawa ka ba pag ayaw kang pakinggan? The council, led by Frank, had the final say and discretion, being CFC's governing council. It was only when Frank and the 2 others resigned that the BOE was sought for advise and guidance, and was recognized for its role.

We had a very authoritatian Council under Frank & Tony. Well-meaning advice not aligned with their personal convictions were ignored, even if coming from the BOE or other leaders. And that's supported by our culture of obedience, developed by the same leaders (FRANK, TONY & atbp)thru attribution to God of their human words.

Indeed shame on them and ON US. Let's be more prayerful and discerning. Leaders are human, erring human. Let's not take their words hook line and sinker. Let's listen to God in our own hearts and thru our scripture readings.

This is a wakeup call to the blind obedience propagated by the former council leaders of 26 years in the name of God.

YearningForTruth said...

Question:

The financial report that you published in this blog, does this cover the global community or just the Philippines?

I am a member here in the US and have not seen a similar report with the former USA NC or any of the leaders I know here.

The only report concerning tithes that I saw, thus far, comes from GK and the US National Director's Appeal at www.cfcnda.com. This fund is administered by Bro. Joe Duran who was been transparent about finances ever since. He now leads the US National Council after 5 or 6 former US NC members issued a statement not recognizing the International Council.

My question now to the former US National Council who continue to ignore the IC, WHERE IS YOUR FINANCIAL REPORT TO THE MEMBERS OF CFC USA!

Until when will this shroud of obedience continue to block members from asking how our tithes were spent.

At least with GK, when I send my hard-earned dollars, I get to see the village in form. Families back home continue to send me thank you letters.

With CFC Stewardships under Frank PAdILLA, I don't even get a thank you from our proud leaders. So no thank you and no Financial Statements.

And now FFL (For Frank and Lachie) is now saying that GK is veering away from our mission!

Here's what I say to FFL - their veering and getting away with members' hard-earned money. They contine to forget how the members are faithful in squeezing in priority tithes to be faithful members. But here's what they seem to remember... to line the pockets of those loyal to Padilla.

Hmmm...now I know why the Lord warned His disciples about FALSE PROPHETS...because of SELFISH PROFIT.

Padilla and Agana, as you have taught us, we will forgive you. But I doubt if CIVIL SOCIETY will. We will pray that CIVIL SOCIETY will be more forgiving.

Come out and come clean... there is hope in repentance and faith. It' not too late to turn back to the LORD!

We are opening a special CLP for you and your spouses. Maybe in this CLP you can find how merciful our God is!

Anonymous said...

Some financial notes:

4.5 million per month, divided by 300 workers = average monthly salary of 15,000php

But, the retirement fund:
800,000 divided by ten retirees = 80,000 per-month.

Makes me wonder what the salaries at the top were. I guess the argument can be quite validly made that people at the top could also be running corporations (hence, they're worth that amount - why should we pay great managers a pittance?), but at least in corporations things are accountable - finances and performance.

WillyJ said...

All of which tells us that:
The CFC organization has very loose financial procedures and controls, which allows one or a few at the top to have too much discretionary latitude, leading to disastrous results. At this point, it will be reasonable to at least expect corrective/preventive actions
on this matter. Are they coming?

Anonymous said...

Just curious... saan kukunin ang pera para sa 10 na nag-resign or nag-retire? Di ba ang mga tithes natin ay para gamitin sa evangelization like CLP, Youth Camp, etc...? Most of those former leaders are well-off and most of the members who give tithes are from the poor and middle income families, why not use the money for God's work.

CFC is not a corporation where we funds for retirement can be set aside. CFC is non-profit organization. Please don't take away the money intended for evangelization.

Considering that CFC is heavily indebted, it's not right to finance program that we cannot afford. Without sufficient funds our work will be affected.

Whoever is finance committee, would suggest to look into this matter. All of us are serving to give honor and glory to God without any compensation, bakit kailangan bigyan ng retirement money ang mga dating Elders?

May God bless our work for the poor and may we succeed in bringing more souls to God through our CLP's.

God bless.

Bro. Pepe Ong said...

TO : CFC INTERNATIONAL COUNCIL, ELDERS AND LEADERS
FROM : BRO. JOSE R. ONG, Regional Church Relations Officer
DATE : September 10, 2007

We are on the threshold of a new era when the dawn after the extraordinary storm begins to appear. This new dawn is the emergence of a new period, a gift from God of a new life to CFC, to continue to serve with the love of Jesus and a call to all leaders and elders to be a true disciple carrying His cross forgetting oneself.
After the whole day Provincial Pastoral Congress in Bohol last Sunday, September 9, 2007, issues were raised, that of virtual bankruptcy (per ARIS August 20, 2007 email) and the rumored lapses of council member that had, it been in other organization, those lapses can send a person to jail or serve as blacklist of his lack of honesty and integrity for life. (Very uncalled for to happen in a Christian community like CFC).
From Bro. Lito Tayag’s financial report, CFC with huge loan payable and still accommodating advances worth P3.9M and unliquidated expenses of P1.7M is a real management mess. So much consenting silence because of complacency, cowardice and collaboration.
Worst information received from the talk of our past RAH (Bro. Roland Nillas) two (2) years ago in one of our MC Gatherings here -- that we have P38M loan guaranteed by our elder. It turned out to be a lie when at year end, a different financial report appeared in the Ugnayan. Could this be a product of the alleged information that CFC is maintaining two (2) books of accounts? If leaders lie then whom are we serving? The Father of Lies? Not to mention the alleged mess of the Department of Health Fund amounting to P50M.
Further, over 300 Fulltime Workers with P4.5M monthly salary created a new slogan through text messages that if you want to see the world free, join the CFC Fulltime workers and pray to be among the “favored few” and receive a gift for your loyalty (by ARIS). This is in addition to our new slogan in Bohol – “Join CLP and get married free with Lechon Party!” Due to our financial difficulty, let us encourage our FTWs to help CFC by invading the business world. They are very qualified and help erase the wrong notion that CFC is a comfort zone for lazy workers. Then encourage volunteers.
With our Mr. Powerful and Mr. Clean Brother Frank Padilla and Brother Tony Meloto at the helm of CFC leadership and still all these mess and chaos could happen, what will be our guaranty that this will not happen again in the future?
At the end of the Congress, I was requested by Bro. Oliver Yu, council member, with the permission of our PAD, Bro. Neil Balite, to share my view. I stood up informing and requesting the body to have a common voice to the Regional and National Pastoral Congress requesting a radical change of CFC structure because of my fear that the prophecy by our elders in the talk during the TOBIT Weekend, that we are like Medjugorje (same birth year) will happen. I immediately texted and requested Manila to please erase Medjugorje in the talk because Medjugorje – once a vibrant place with millions of pilgrims -- was declared by Vatican as overacting with more than 5 thousand messages from Mama Mary through the pressure of the communist government to promote tourism and Medjugorje is empty. God forbid this to happen to CFC. I hope God will forgive our trespasses.
With prayer that my fear will not happen, I raised the suggestion of Bro. Caloy Yturzaeta that the best structure for CFC must be like that of the structure of the Roman Catholic Church. I consulted Most Rev. Leonardo Medroso, Bishop of the Diocese of Tagbilaran, about the idea and the latter confirmed that the said structure is the best for CFC. We will grow side by side with the church hopefully forever. All CFC in the provinces be autonomous, registered with the Securities and Exchange Commission (SEC), but submit pastoral and moral directions to CFC Manila. Just like all dioceses are autonomous but under CBCP and Vatican.
I am one of the founders / Board of Directors of Tagbilaran City Habitat for Humanity Foundation, with SEC Registration as legal juridical personality. We constructed near 500 houses already funded by Habitat International and repayment money will roll over – building more houses in Bohol. We are not affected by the HUGE salaries of Manila office worker. We are all volunteers in the Board, no allowances! NO SALARIES!
The only obstacles I can see to the above proposal are: “GRRED FOR POWER, GREED FOR CONTROL and GREED FOR MONEY!” I hope this is not a problem anymore with the new council, for we all know that Christian leadership is not POWER but LOVE!, not force but by example, nor coercion but reason and persuasion. No more lording over and dominating of members. Should something bad will happen again to the top leadership of CFC, the provinces is not very much affected but can extend their help.
Let us avoid the temptation of leading members to blind obedience, avoid the unofficial mantra (as cited by Dr. Vic Cabuquit) of obedience – “Obey or Else?!” which is the root cause of all the chaos. Obedience is good but should always one of active obedience. Let us also avoid the FOLLY of declaring that tithes are God’s money and the top leader is only accountable to God. We should not mention tithes anymore to avoid the HYPOCRISY of claiming blanket authority over God’s money. We are a foundation not a Church, so we ask donation, not tithe and all members is entitled to transparency of the foundation’s money. Sometimes, because of Manila’s demand for tithe, our Regional Head and PAH will look awkward in giving talks, people listening will have the impression that money is more precious to them than human soul, sounds more like a banker, than a preacher! Forgetting Christ’s teaching that the more we give ourselves in humble loving service will come overflowing of graces and blessing from God. We experienced this -- our Diocese always having financial problems before the coming of Bishop Leo Tumulak. When Bishop Leo arrived, he donated his monetary gifts from Cebu worth P200,000.00 to pay bank loans. And because of his transparency and humble loving service, we have now more than P30M savings in the bank. (I know this because I am a member of the Diocesan Finance and Diocesan BEC). Just recently, an overflowing donation to our parish priest in the Cathedral – Msgr. Crispin Varquez -- who was appointed Bishop of Borongan, Samar, because of his humble loving service. He does not talk about soliciting and tithing, yet people give and serve. Like the candle vendors, they volunteer to clean and sweep the Cathedral compound everyday.

To My Friends in the Council: Please Harden not your Hearts!
Thank you and God Bless!