Government going bankrupt, can’t pay Christmas bonus — Herrera

An opposition congressman said yesterday the government is going bankrupt, and that tax collections can no longer shoulder the Christmas bonus and 13th month pay of civil servants nor the cost of government operations.

Rep. Ernesto Herrera (Lakas, Bohol) told reporters the administration has been delayed in releasing money to government agencies, including local governments, which are dependent on the internal revenue allotment from the national government.

But President Estrada debunked yesterday Herrera’s claim, saying that the political opposition is spreading rumors of bankruptcy to destablize the government.

"Who said that?" he snapped at reporters during an interview after speaking at the 37th General Assembly of the Asia Pacific Broadcasting Union at EDSA Shangri-La Hotel in Mandaluyong City. "The enemies? Of course, they will claim that. We (the government) are very solid, solid, solid."

Mr. Estrada told reporters it is ironic that the opposition is saying that the government has no money while accusing Malacañang of bribing senators, who would become jurors if he faces an impeachment trial at the Senate, with at least P1 billion for his acquittal.

"I thought there is no money," he said. "Where will we get those millions?"

Budget and Management Secretary Benjamin Diokno told reporters yesterday he signed last Tuesday night checks amounting to P9 billion for the internal revenue allotment of local governments.

Diokno accused the political opposition of "sowing panic" among the people to "scare away" foreign investors and local businessmen.

"There’s no truth to that (bankruptcy)," he said. "Perhaps, some analysts just misinterpreted it."

On the other hand, National Treasurer Leonor Briones told reporters yesterday the National Treasury has P112.1 billion of which only P50 billion were "restricted" or placed in short-term treasury bills, and that P62.1 billion can be released to national and local government agencies.

Briones reported to the President that as much as P112.1 billion has been "in the books" of the National Treasury since Sept. 30.

Briones assured the nation that she has been prudently managing the state coffers as she deplored attempts by "certain political quarters" to create economic instability in the country through "irresponsible" statements. – With Marichu Villanueva

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