Diokno: Early procurement activities started Andaya’s time as Budget chief

MANILA, Philippines — Conducting early procurement activities even before a budget bill is enacted into law started under Camarines Sur Rep. Rolando Andaya Jr.’s term as Budget secretary, Budget Secretary Benjamin Diokno claimed on Wednesday.

Diokno said that early procurement for government projects is “not new” as it has been allowed since 2009 under the Arroyo administration.

“The conduct of early procurement activities, short of the award, is not new. It has been allowed since 2009, under the Arroyo administration with Andaya as Budget Secretary,” Diokno said in a statement.

Diokno made the remark in response to Andaya’s claim that contractors have already paid “commissions” or “cash advances” for the P75 billion worth of infrastructure projects in the 2019 budget of the Department of Public Works and Highways (DPWH).

Andaya claimed that “favored contractors” were “upset” that the cash advances fell through after the Senate and the House of Representatives deleted the P75 billion in the 2019 spending bill.

READ: Andaya: Favored contractors seeking refund of kickbacks

Diokno pointed out that in early procurement, the contract is not perfected until the General Appropriations Act (GAA) is passed.

He added that the conduct of early procurement is guided by circulars to ensure the compliance of agencies with the existing Procurement Law, its Implementing Rules and Regulations, and other pertinent rules and regulations.

Under Circular 01-2009, agencies can proceed with the procurement activities before the Notice of Award, using as a basis the National Expenditure Program (NEP).

The policy was also restated in the Department of Budget and Management (DBM) Circular Letter 2010-9 which allows agencies to proceed with their procurement activities without awarding projects until the President approves the NEP.

The Budget chief pointed out that early procurement does not tolerate advance payments or commissions.

“I do not know what the practice was when Andaya was Budget Secretary, but under our watch, advance payments of commissions are considered illegal. Such practices are not, and will not be condoned by the Duterte administration,” Diokno said.

“If Andaya knows of such practices, and he clearly does, as he has been defending contractors, then he should name these personalities as they should be investigated. That is graft,” he added.

He also said reputable contractors will not engage in the practice of giving cash advances.

The practice of early procurement before the start of the budget year was introduced to ensure efficient and timely implementation of projects, Diokno said.

He added that the DBM has even sought to institutionalize early procurement as a best practice to meet global standards in government efficiency, as is the practice in many developed countries. /ee