Palace defends DBM amid corruption allegations

MANILA, Philippines — Malacañang defended yesterday the Department of Budget and Management (DBM) from allegations that the government owes several private contractors billions of pesos because of corruption.

House appropriations committee chairman and Camarines Sur Rep. Rolando Andaya Jr. has claimed that the DBM and the Department of Public Works and Highways (DPWH) owe contractors around P100 billion because of a system that forces them to give kickbacks in order to get payment for completed projects.

Citing unnamed sources, Andaya said the release of payment from the DBM to the DPWH varies per engineering district, depending on the amount of kickback. 

He claimed that officials were given the discretion to choose who among the contractors would receive payments, forcing contractors to resort to bribery.  

Presidential spokesman Salvador Panelo said he could not understand the connection between unsettled obligations and corruption. 

“Malabo yata iyon (That’s unclear). Why would the government owe the contractors because of corruption?” Panelo said. “There seems to be no connection. There is corruption if contractors resort to bribes to get something. But if the government owes them something, I do not see the connection with corruption.”

Panelo said a contractor would not receive full payment if he fails to finish the project assigned to him.

He said the contractors, not Andaya, should file a complaint if they think the government did something wrong. 

“Congressman Andaya cannot be lawyering for these contractors. If the contractors have something to complain, they should themselves file the complaint and address their concerns to the respective department or to the DPWH,” the spokesman said. 

OBS rating

Despite the attacks on the DBM and the delay in the 2019 budget, the agency expressed confidence that the Philippines would get a higher budget transparency rating in the biennial Open Budget Survey (OBS).

Budget Secretary Benjamin Diokno said the DBM expects to meet its targets in terms of budget transparency this year and further improve its OBS score for 2019. 

“We expect a higher rating this year given the timely publication of the Mid-Year Report in 2018. The DBM has exerted efforts not only by making the budget available to the public, but also making budget documents comprehensive and citizen-friendly,” Diokno said.

According to the DBM, the International Budget Partnership (IBP) that spearheads the OBS every two years has collected data in over 100 countries for the 2019 survey.

The IBP said governments have until the end of this year to take steps to improve budget transparency, participation and oversight.

The OBS evaluates budget transparency based on the comprehensiveness and public availability of eight key budget documents, including the Pre-Budget Statement, Executive Budget Proposal, Enacted Budget, Citizens Budget, In-Year Reports, Mid-Year Report, Year-End Report and Audit Report.

The first seven documents are prepared by the DBM.

In 2017, the Philippines’ transparency score in the OBS was 67 points out of 100. This was higher than Indonesia (64), Japan (60), South Korea (60), Thailand (56), Malaysia (46), Timor-Leste (42), Cambodia (20), Vietnam (15) and Myanmar (7).

The DBM said this score indicates that citizens have access to substantial budget information, which enables them to participate in decision-making and hold the government accountable.

The agency added the Philippines was the only Asian country which received moderate scores for public participation, joining New Zealand, Australia and the United Kingdom.

Congress ratified the P3.757-trillion 2019 budget early this month after months of delay.

The delay was due to Congress’ opposition over the shift to a cash-based appropriations scheme as well as the alleged “insertions” in the budget of the DPWH.

Diokno earlier said the President is waiting for Congress to transmit the enrolled copy of the General Appropriations Act before it will be reviewed and signed into law.

The government is operating on a reenacted budget for the first quarter of the year. – Mary Grace Padin