MANILA, Philippines — The Department of Budget and Management (DBM) has denied Camarines Sur Rep. Rolando Andaya’s allegations that it generated P370 billion in “pork” funds in 2017.
In a statement, Budget Secretary Benjamin Diokno clarified that the amount cited by Andaya pertained to savings generated by the government in fiscal year 2017, which no longer be utilized by the department.
“Perhaps Congressman Andaya was referring to the P370.1 billion worth of appropriations in 2017 reverted to the Treasury. It is not true that the DBM can utilize these funds as the President’s veto message in fiscal year 2017 states that, in general, funds must be obligated not later than Dec. 31, 2017,” Diokno said.
The President’s veto message in the 2017 General Appropriations Act directed “all agency heads to ensure obligation of all programs, activities and projects funded” under this law not later than Dec. 31, 2017.
According to Diokno, the government incurred P388.4 billion in unreleased appropriations and unobligated allotments in 2017.
However, P18.3 billion of this amount was extended until 2018, hence the computed amount of P370 billion.
Diokno said the bulk of these extended appropriations were for constitutional offices with fiscal autonomy.
“Granted the computation of the P370-billion balance, I reiterate that such funds may no longer be used as they have been reverted to the Treasury,” the budget chief said.
“There is no such thing as DBM pork as the DBM follows pertinent provisions and laws in the use of funds and declaration of savings,” he added.
Meanwhile, the Procurement Service (PS), an attached office of the DBM, also denied Andaya’s claims that the P17.4-billion “idle funds” currently lodged in the agency was due to the revision of the implementing rules and regulations (IRR) of the Procurement Law.
“The P17.4 billion worth of funds is a cumulative amount from many years back, due to the lack of proper technical documentation from source agencies, which delays the bidding process. This figure is not at all attributable to the revision of the procurement IRR during the start of the Duterte administration,” PS said.
Moreover, PS clarified that the Procurement Law’s IRR was revised by the Government Procurement Policy Board (GPPB). However, it was only approved in 2016, under the chairmanship of Diokno.
The agency said less funds remain with the PS as more projects are now being bid out and subsequently implemented by their respective implementing agencies.
“This is a direct result of the introduction by Budget Secretary Diokno of a package of strategies to reform and rebrand PS and prevent unnecessary agency fund transfers,” PS said.
PS said it also has no reason to withhold information from the Commission on Audit (COA). It said the Procurement Monitoring Report (PMR) required by COA was submitted to GPPB and posted on the PS website.
“A copy of the screenshot of the PMR posted in the PS website was submitted to COA by the Internal Audit Division and was stamped received by COA on July 2, 2018. The COA Action Plan Monitoring Tool dated Dec. 7, 2018 showed this particular COA requirement as ‘implemented’ under the columns ‘Results of COA Validation’,” the agency said.
PS also reported that “a hard copy of the 2017 list of procurement projects of agencies has also been provided upon the COA’s verbal request.”
The PS also maintained that there is no basis to hold Diokno criminally liable for hiring contractual workers to perform their duties at the PS, as this practice is authorized by law.
“PS bids and awards committees (BACs) are independent units that make their own decisions or recommendations on bidding projects without interference from anyone,” the agency said.
“Further, the BACs are made up of PS and agency procurement and technical personnel. This membership mix in structure and composition is required by the Procurement Law to make it difficult for a single person to influence BAC decisions, even the head of the procuring entity,” it added.
PS also cited Section 11.2 of the IRR of Republic Act 9184, which allows personnel occupying plantilla positions to be members of the BAC.
“The BACs of PS are contractuals occupying approved plantilla positions and therefore compliant to the requirement of the Procurement Law on BAC membership. All employees of the Procurement Service are mandated by law to be contractuals,” PS said.
Specifically, PS said Letter of Instruction No. 755 dated Oct. 18, 1978 mandates that the PS shall be staffed by persons on detail from agencies or by contractual personnel. PS said the law mandates that PS “shall not have any permanent employees.”