Doomsayers cannot stop economic recovery efforts — Palace

"Naysayers" and "doomsayers" cannot hold back the Arroyo administration from its efforts to stabilize the country’s fiscal crisis.

Presidential Spokesman Ignacio Bunye said a strong partnership between the executive and legislative branches of government ensures the administration enjoys popular support for its economic measures.

"Our measures to stabilize our fiscal situation are gaining ground through a strong executive-legislative partnership chalking up more backing everyday from our people. We will not be put down by naysayers and doomsayers," he said.

Bunye made his statement in reaction to the revelation made by Anakpawis party-list Rep. Crispin Beltran that the Office of the President (OP) has unliquidated cash advances reaching a record high of P626 million last year.

Citing a Commission on Audit (COA) report, Beltran said the figure surpassed the accumulated cash advances of the Marcos regime and the administration of deposed President Joseph Estrada.

Bunye said Budget and Management Secretary Emilia Boncodin has an explanation for the COA findings.

"The COA report, in a way, is a static report of a particular time. So, it is very possible that by this time these cash advances are already in various stages of liquidation," he said.

Bunye said that Boncodin had informed President Arroyo that the DBM will come up with an updated report on the liquidation of the funds in question.

"The (OP) under President Arroyo had accumulated P625.8 million cash advances for operations as of December 31, 2003. As of today, 33.1 percent of that amount or more than P207 million has been liquidated," he said.

Bunye said that the OP had not violated the law for unliquidated cash advances.

"The law provides a reasonable amount of time for liquidation and there is nothing irregular about the outstanding balance. In fact the (OP) has about P158 million of unliquidated cash advances from the previous administration," he said.

Bunye insisted that the funds were used "for priority projects, particularly for the pro-poor projects" and were subjected to proper disbursement procedures.

"Records and documents pertaining to the expenses of the (OP) are of public record. We have nothing to hide and there is no need to make hay out of these routine procedures," he said.

Bunye denied insinuations the OP was overspending.

"I take strong exception to news reports that the (OP) has been overspending or that it has not been liquidating its cash advances. President Arroyo has never received cash advances as suggested by headlines. Various officials and employees of the (OP) receive cash advances for salaries, purchases of supplies, materials, gasoline and lubricants as well as medicine for our Malacañang clinic," he said.

He said the cash advances are "lawful and indispensable for the efficient and effective operations" of the OP.

Beltran earlier said the money used for the upkeep of Malacañang could have been better used "to increase allocations for public hospitals, schools and the salaries of teachers and rank-and-file government employees."