THE Senate has prohibited the use of the Executive’s contingent funds to augment the confidential and intelligence funds (CFIs) of government agencies, especially civilian offices which are not involved in defense and public safety.
Senate deputy minority leader Risa Hontiveros yesterday said the Senate Committee on Finance, which is chaired by Sen. Juan Edgardo Angara, has adopted her proposal to include the special provision in the upper chamber’s version of the proposed 2024 General Appropriations Bill (GAB).
In her explanation of her “yes” vote to the spending measure, Hontiveros thanked Angara for accepting her individual amendment.
“Nais kong magpasalamat sa ating chairperson ng Senate Committee on Finance sa pagtanggap din ng ating amyenda ukol sa contingent funds para ipagbawal ang paggamit nito bilang panustos ng confidential and intelligence funds ng mga civilian agencies na walang direktang mandato ukol sa national defense at public safety (I would like to thank our Senate Committee on Finance chairperson for accepting my amendments to prohibit the use of contingent funds to augment confidential and intelligence funds of civilian agencies which are not directly involved in national security and public safety),” Hontiveros said.
Asked to confirm Hontiveros’ statement, Angara replied “yes” to questions posed by reporters in the communication app Viber.
Hontiveros made her proposal following the controversy generated by the December 2022 transfer of P125 million in Office of the President (OP) contingency funds to the Office of the Vice President (OVP) for use as its confidential funds.
Lawmakers from the Makabayan bloc at the House of Representatives questioned the transfer, pointing out that it was illegal since there was no such appropriation in the 2022 General Appropriations Act.
They likewise questioned how Vice President Sara Duterte spent the P125 million, noting that it was expended in only 11 days.
As a result of the controversy and amid questions on how and where the OVP would use its requested P500 million confidential funds for next year, the House stripped the Duterte’s office and Department of Education’s (DepEd) confidential funds in the 2024 budget.
Duterte is the concurrent DepEd secretary.
Following the move, a word war started between former President Rodrigo Duterte and the House leadership after the elder Duterte defended his daughter’s confidential fund request.
Senate minority leader Aquilino Pimentel III said the P4.56 billion in confidential and intelligence funds requested by the OP for 2024 has remained intact, noting that no one among his colleagues in the Senate “dared to touch” the President’s secret funds.
Pimentel has been pushing for the removal of the confidential funds of the OP since as a civilian agency, it is not directly involved in national security and/or law enforcement matters.
BICAM MEETING
The Senate and House contingents will meet today to iron out the disagreeing provisions in the 2024 General Appropriations Bill which contains the P5.768 trillion spending plan of the government.
In an advisory, Angara’s office said the bicameral conference committee will be held at the Manila Golf and Country Club in Makati City at 10 a.m.
The Senate on Tuesday afternoon passed on second and third reading its version of the proposed national budget measure, with 21 voting in favor, no negative votes, and Pimentel abstaining.
Senators Alan Peter Cayetano and Pia Cayetano were not around during the voting.
The Senate bicameral contingent are Angara, who will serve as c-chairman of the joint body, and Senators Loren Legarda, Pia Cayetano, Imee Marcos, Cynthai Villar, Ronald dela Rosa, Sherwin Gatchalian, Christopher Go, Hontiveros, Nancy Binay, Grace Poe, Mark Villar, Francis Tolentino, JV Ejercito, and Jinggoy Estrada.
EXCESS FUNDS
At the House, lawmakers voted 229-4 with two abstentions to approve House Bill No. 9513 which seeks to allow the government to use excess funds from government-owned and controlled corporations (GOCCs) for unprogrammed appropriations under this year’s national budget.
The bill, principally authored by Reps. Joey Salceda of Albay and Zaldy Co (PL, Ako Bicol), seeks to amend the 2023 GAA’s special provision and allow unprogrammed funds authorized under the 2023 GAA to use “funds of government-owned or -controlled corporations determined to be in excess of their current administrative and operational expenses, benefit obligations, or reserve requirements.”
Salceda chairs the House Committee on Ways and Means, while Co chairs the House Committee on Appropriations.
“In order to maximize the idle funds of the GOCCs and further help the national government, this bill proposes that the same be used to fund the unprogrammed appropriations. The funds of GOCCs determined to be in excess of their current administrative and operational expenses, benefit obligations, or reserve requirements may be used to implement the vital purposes under the unprogrammed appropriations,” Salceda said.
The lawmaker added: “It is an accepted fact that certain government corporations have funds far exceeding their current administrative and operational expenses, benefit obligations, and/or reserve requirements. These funds lie idle in the banks or are invested in time deposits and other securities with other government and non-government financial institutions and results in the inefficient use of national government resources.”
Rep. Arlene Brosas (PL, Gabriela), who voted against the bill, said it has potential implications on social services and programs “and will likely only serve to expand the pork barrel system.”
Brosas said the current utilization of unprogrammed funds from 2020 to 2022, ranging from 69 percent to 89 percent, reveals that a significant portion of UA is already being funded and utilized through the existing three criteria for financing.
For this year, she noted the government even allotted P807 billion authorized unprogrammed funds – “historically the largest annual Unprogrammed Appropriations.”
Brosas questioned the necessity of increasing the cash streams for unprogrammed funds “when these funds should rightfully be remitted to the Treasury as official revenues.”
“The proposal to source funds from excess GOCC revenues raises concerns about the direction of GOCCs and the potential intensification of profit-based fund sourcing at the expense of social services and the welfare of ordinary Filipinos,” she said.
“Many existing GOCCs are mandated to address the social service needs of our people, including healthcare, energy, and housing. Instead of allocating funds through unprogrammed funds, it is imperative to prioritize regular funds for agencies directly involved in providing social services. Discretionary allocations through unprogrammed funds may also undermine the intended projects and programs for the Filipino people,” she added. — With Wendell Vigilia
