Palace exec admits controversial provisions in savings bill

MANILA, Philippines - A Malacañang official conceded yesterday the “retroactive and curative” provisions in the draft bill defining savings submitted by the Department of Budget and Management to Congress were “controversial,” given the Supreme Court’s decision against the Disbursement Acceleration Program (DAP).

Presidential Legislative Liaison Office Secretary Manuel Mamba said over radio dzRB they haven’t received yet any feedback from the House of Representatives and the Senate on the matter.

“I’m still awaiting their reaction. I wouldn’t really know at this point in time,” Mamba said when asked to comment on talks that House leaders were not inclined to pass the savings bill endorsed by President Aquino and Budget Secretary Florencio Abad after the SC declared parts of the DAP unconstitutional.

The SC said savings by government agencies cannot be pooled before the end of year and be used for programs and projects of other agencies.

Earlier, the Palace cited the need for a law on savings to avoid questions regarding their use in the future. Aquino repeatedly cited the benefits of the DAP on the economy.

The opposition United Nationalist Alliance (UNA) said it had uncovered an attempt by Abad to manipulate the House in a bid to save himself from possible criminal liability for his implementation of the DAP.

UNA secretary general and Navotas Rep. Tobias Tiangco, citing Abad’s letter to House Speaker Feliciano Belmonte Jr. dated Aug. 1, said the embattled secretary was asking Congress to adopt the executive department’s “own definition of the term savings” in the national budget.

Under Section 7 of the draft bill, the DBM wants the measure to be “retroactive” and to repeal “all appropriation laws and such other laws, rules and regulations” found inconsistent with it.

Abad sent Belmonte the DBM draft bill requesting that it be considered a priority measure.

A similar bill redefining the meaning of savings had already been filed by Eastern Samar Rep. Ben Evardone of the Liberal Party.

The draft bill seeks to “cure” the DAP decision and effectively make the SC ruling on savings moot.