Bills limiting President’s power to impound funds filed

MANILA, Philippines - Amid the controversy over the so-called Disbursement Acceleration Program (DAP), two senators have sought to limit the power of the President to impound funds in the General Appropriations Act.

Senators Teofisto Guingona III and Miriam Defensor- Santiago filed separate bills that would require the executive branch to ask approval of Congress for the impoundment of any funds.

Failure on the part of the President to comply with the requirements on impoundment would be considered as a grave betrayal of public trust and a ground for impeachment, according to the proposed legislation.

To impound funds means to rescind, cancel or withhold all or part of an enacted appropriation, which has not been spent or obligated.

The impoundment of funds was what led to the controversy regarding the DAP, which the administration thought of to facilitate the implementation of certain projects and boost public spending.

Impounded funds were considered as savings by the government and used to finance projects related to the DAP. Malacañang also allowed members of Congress to identify programs to the tune of P50 million to P100 million each.

In Senate Bill 1834, or what he calls the Impoundment Control Act of 2013, Guingona said the executive branch has the obligation to implement programs and other projects under the General Appropriations Act (GAA).

“The executive branch, pursuant to its power to implement the law, including appropriations duly made in the GAA, cannot unilaterally defeat the will of the people by refusing to spend the amounts appropriated or spending these funds at a much delayed time,” he said.

“While it is the duty of any government institution to make efficient use of its resources, it simultaneously is a breach of the same duty when these resources are not released for the benefit of the people and then later on, declared as savings of government,” he added.

Guingona’s bill states that impounded funds may not be used for any purpose except by way of legislation and may not be proposed for rescission or deferral again at any time within the budget year.

Santiago, for her part, filed Senate Bill 404 or the Budget Impoundment Control Act, which was originally filed by President Aquino when he was still a senator in the 14th Congress.

While the President has the authority to suspend or stop further expenditure of funds allotted to an agency in view of public interest, she said this presidential prerogative “has been allegedly misused and abused and has emasculated Congress’ authority to check the President’s discretionary power to spend public funds.”

“In effect, the President seems to have a vast and unbridled control over the national budget,” she said.