THE development fund of the Technical Education and Skills Development Authority (Tesda) that had to be infused with P5 billion has been stale for 10 years already because of slow collection, resulting in a slowdown in awards of grants and assistance to training institutions and industries.

According to the Commission on Audit (COA), to date, only P102.31 million only makes up the Tesda Development Fund (TDF).

“The slow receipt of annual collections and income being set aside for the said fund would render the TDF an idle fund and expose the same to possible misuse if not well managed,” the report read.

The objectives of the TDF is to award grants and provide assistance to training institutions, industries, and local government units to upgrade their capabilities and to develop and implement training-related activities.

However, as of 2011 yearend, records showed that the TDF had only an accumulated amount of P102.31 million, broken down as cash in bank (P11.84 million) and investment in retail treasury bills (P90.47 million).

“Despite its huge balance, no institution was granted assistance as of report date which negates the very purpose of the fund,” the Commission found out.

Tesda said that the TDF must first reach P5 billion to ensure the maximum real impact of the beneficiaries.

They added that the P5-billion threshold is the needed amount, based on the recommendation of an expert group who said that a P5-billion seed capital is needed to make the fund sustainable.

But COA reminded the Tesda that with the slow receipt of collection, it would take “hundreds of years” before it the seed capital reaches the P5 billion.

“In effect, the TDF would only serve as an income generating fund of the agency which is prone to possible misuse if not well managed,” the Commission said.

COA asked Tesda to tap feasible sources to increase the seed capital to sustain the viability of the program.

In response, Tesda said that it will assign a specific unit it its secretariat to ensure the use of the TDF within a reasonable period.

They added that they will draw up action to mitigate or eliminate the risk in the audit observation of the Commission.