Tighter rules set on intel fund use

MANILA, Philippines - The Department of Budget and Management (DBM) is coming up with rules on the use of intelligence funds, in the light of reports of their misuse by the Philippine Charity Sweepstakes Office (PCSO) under the Arroyo administration.

“Once the new rules are released, all CIF (confidential and intelligence fund) uses will be subject to strict liquidation. Mere certification of CIF uses will not be allowed,” Budget Secretary Florencio Abad warned.

Former PCSO general manager Rosario Uriarte disclosed during a recent Senate hearing that more than P325 million in intelligence funds had been disbursed in a span of just three years under the Arroyo administration.

Abad said the previous PCSO management used the intelligence funds “purportedly for anti-illegal gambling operations” even if PCSO “officials and staff aren’t soldiers or criminal investigators.”

The DBM chief pointed out that the P160-million PCSO intelligence fund in 2010 alone was larger than the P157.4-million intelligence fund of the Department of National Defense and the Armed Forces of the Philippines and a little less than the Department of Justice’s (DOJ) P164 million. The DOJ has attached agencies like the National Bureau of Investigation, the Bureau of Immigration and the Bureau of Corrections, among others.

“The funds may have been used for seemingly noble purposes, but the P325-million release in those three years under the previous administration was done in a vulgar fashion,” Abad said.

“What’s worse is that the supposed PCSO CIF was used not for intelligence operations, and that they circumvented proper processes to expedite the release,” Abad added.

Uriarte admitted dipping into the PCSO’s intelligence funds to pay the blood money of overseas Filipino workers on death row and to cover expenses for relief operations and assistance during calamities, with the full knowledge and approval of former President Gloria Macapagal-Arroyo.

The PCSO, Uriarte said, had also utilized the funds for its anti-jueteng operations.

Section 22 of the 2010 General Appropriations Act states that CIFs may only be released upon approval of the President, and that at least 80 percent of CIFs shall be used for field operations.

Departments and agencies using CIFs shall submit to the Senate President, House Speaker and Commission on Audit chairman a quarterly report on the use of the funds.

Reforms readied

Even before the funds misuse scandal came to light, the new PCSO management had already begun the process of reforming the agency.

In a “status report to the Filipino people,” the new PCSO officials led by chair Margarita Juico said they have jumpstarted reforms amid death threats, smear campaigns and other forms of harassment from “those who have abused their powers in the past, plundered the resources of the PCSO, profited from anomalous contracts and simply bent on attracting attention.” The report did not name names.

“We have been subjected to smear campaign, received death threats and lately taken to court for canceling illegal contracts,” the report said.

“But all of these have not and will never dampen our spirit to continue our reform, we under the leadership of President Aquino stand firm with renewed commitment to protect the resources of the PCSO for the benefit of our less fortunate brethren,” the PCSO report read.

Juico, directors Francisco Joaquin III, Mabel Mamba, Aleta Tolentino, Betty Nantes, Eduardo Araullo, and board secretary and PCSO general manager Jose Ferdinand Rojas II signed the report.

“Many officers were unwilling to cooperate with us, this was in contrast with the reception of the rank and file who were enthusiastic in receiving and embracing the thrust and change which President Aquino wants to implement with the new board,” the report said.

Check 2012 budget plan

For an opposition congressman, the Aquino administration also has some explaining to do regarding the appropriation of intelligence expenses in the 2012 budget.

“They should explain why they are asking for such funds. They should also defend the disbursement of intelligence and confidential funds this year,” Isabela Rep. Rodolfo Albano said.

Albano said the House should ask officials during budget hearings to justify their requests for intelligence funds and decide which agencies are entitled to such appropriations.

He said there could be agencies that don’t need money for intelligence or confidential expenses.

He added that only the military, the police, the National Bureau of Investigation, and a few other offices need such funds.

He pointed out that government corporations like the PCSO do not need allocations for intelligence information gathering.

At the same time, Albano urged the Commission on Audit (COA) to be strict in the approval of intelligence fund disbursements.

“We can avoid irregular and questionable fund releases if COA is keeping an eye on the disbursement of these funds. There should be transparency in all transactions involving taxpayers’ money. The people have the right to know how their money is spent,” he said.

He noted that in the congressional investigations into the so-called fund “conversions” in the military, a big part of the converted funds turned out to be for intelligence operations.

According to witnesses in these inquiries, including former military budget officer George Rabusa, hundreds of millions in appropriations for salaries and intelligence expenses were “converted” into cash and pocketed by high-ranking officers.

Rabusa claimed that auditors were in cahoots with corrupt military personnel in the conversion of funds.

In particular, he named one auditor assigned to the military and one assistant audit commissioner to whom the auditor reported.

Albano said the House should check on how intelligence funds are audited.

If needed, lawmakers should recommend the prosecution of auditors who connive with intelligence fund handlers in the misuse of such money, he said.                      

Help for SUV-shops

Meanwhile, the Coalition on Family and Life led by former Manila mayor Lito Atienza and election lawyer Romulo Macalintal yesterday launched a campaign to raise P8.258 million to give to the PCSO as payment for the luxury vehicles it donated to seven bishops.

In a forum, Atienza and Macalintal said the P8.258 million represented the donation from PCSO for the purchase of sport utility vehicles (SUVs) for the bishops.

The seven prelates were Ilocos Sur Archbishop Ernesto Salgado, Bontoc Lagawe Bishop Rodolfo Beltran, Abra Bishop Leopoldo Jaucian, Cotabato Archbishop Orlando Quevedo, Zamboanga Bishop Romulo Valles, Butuan Bishop Juan de Dios Pueblos, and Prelature of Isabela Bishop Martin Jumoad.

The coalition also presented a manifesto titled “In the Name of the Father,” through which they hope to encourage Church lay leaders and ordinary Catholics to help the seven bishops at a time when a “national and international scandal” is rocking the Catholic Church.

They said the faithful should show their “sincere and wholehearted support to our priests and bishops at this trying moment where the unity of each and every one of us is expected by our Mother Church.”

“We firmly believe that none of our bishops violated any law or ethical standard in connection with the financial donations they received from the PCSO to purchase utility vehicles which they used to reach out their respective parishioners,” the manifesto read. “The accusations against them are all fabricated, baseless and politically motivated to destroy the image and dignity of our Mother Church, our priests and our bishops.”

“We hope to reach all the corners of the land. This would also be like an evangelization. We should learn how to defend our faith and we should not just join the bandwagon,” Atienza said.

If each of the 8,000 Catholic lay leaders would give P1,000 or if 16,000 Filipinos would willingly shell out P500 for the Catholic bishops, then they would be able to raise the needed amount, Atienza said.

But they stressed that even donations as low as P1 would be accepted.

“If this (fund raising campaign) would reach Manny and he wants to make a donation, they would accept his contribution,” Macalintal said, referring to Sarangani congressman and boxing champion Manny Pacquiao. Pacquiao, one of the wealthiest sports personalities in the world, earlier voiced his support for the bishops. 

As of noontime yesterday, their group already raised P124,250. The biggest donor was garments businessman Ed Capulong who gave a check worth P100,000 while Atienza and Macalintal only gave P1,000 each. With Jess Diaz, Perseus Echeminada, Evelyn Macairan