A vendor sells cigarettes at a supermarket in Quezon City in this file photo. A proposed bill restructuring the excise tax on tobacco and alcohol products is seen to generate some P60 billion, according to President Benigno Aquino III, who is pushing for the passing of the sin tax reform bill. AFP PHOTO/JAY DIRECTO
MANILA, Philippines — Lobby fund or grants?
Regardless of what they were, Senate President Juan Ponce Enrile said the millions of dollars poured into the country by a US-based anti-smoking program indicated a foreign campaign to influence the country’s lawmakers as regards domestic policy.
This developed as senators allied with President Aquino defended the reported $4.9-million given to government agencies and private organizations saying it was in the form of legitimate grants for the anti-smoking advocacy.
When asked if the funds for the anti-tobacco campaign also undermined the Senate’s integrity, Enrile said “I wouldn’t make those conclusions but it only shows that there is an effort by foreigners to influence the internal policies of the country,” Enrile said.
Sen. Ralph Recto, in a privilege speech on Monday, said he would not mind if those groups pushing for sin tax rates higher than those he has been proposing received lobby money from the foundation funded by New York City Mayor Michael Bloomberg.
Recto, who was criticized by finance and internal revenue officials for the mere P15 billion that would be generated by his version of the sin tax measure, announced his resignation as chair of the Senate committee on ways and means during the speech.
“So if groups — which got lobby money from the foundation funded by the Mayor Bloomberg of New York City with the marching order to agitate for the imposition of New York City tax rates on the likes of Bataan Matamis — cried foul [with my committee report], it’s okay with me,” Recto said.
Recto made the remark while making the point about having to welcome criticism “as contrasting opinions result in polished legislation.”
“But as what I hinted earlier, I am not hurt if my critics condemn me. But I will be lying if I will say that I am not affected by the unfounded criticisms of my friends in the executive,” Recto said referring to an insinuation by a member of the Cabinet that he received lobby money from tobacco firms.
Recto resigned amid insinuations that lobby money from industry players kept him from adopting higher tax rates that would be expected to generate P60 billion as targeted by the administration’s economic managers for its universal health care program. He has denied such suggestions.
According to the website tobaccocontrolgrants.org, the Bloomberg Initiative Grants Program gives funding to government agencies, non-government organizations, civil society groups and universities to address the dangers posed by tobacco use.
A site on what it has set aside for the Philippines showed that $4.9 million were provided for government agencies and private groups in the country.
These include funds for groups that “aim to secure the passage of a law that will reform and increase tobacco taxation in the Philippines.”
The group Action for Economic Reforms was, for instance, given $255,626 in 2011 for the tobacco control advocacy of increasing taxes on tobacco products and lowering cigarette use.
The Department of Health National Center for Health Promotion was given $369,877 in 2010 for its project on the full implementation of the World Health Organization’s framework convention on tobacco control.
Sen. Franklin Drilon, chair of the Senate committee on finance that has been tackling the national budget in the Senate, said the funds provided by the Bloomberg Initiative were not lobby money.
“The grants are not lobby money. They are grants to these NGOs including the UP College of Law. That is not lobby money. Those are grant because these NGOs are advocates of a cause which Bloomberg believes in. So it is not lobby money,” Drilon said.
The UP College of Law Foundation was given $353,030 in 2008 for a project that would build capacity among responsible agencies for better enforcement of existing legislation on smoke-free places and bans on tobacco advertising.
“You want to put up an anti-cigarette foundation and you show that you will work for the reduction of smoking in our country you can apply for a grant but it doesn’t mean lobby money. I don’t think that’s correct,” he added.
Sen. Panfilo Lacson, the chair of the Senate committee on accounts and one of the authors of the sin tax reform bill in the Senate, doubted if the Bloomberg funds were lobby money.
“[The information] is posted on a website. If that’s lobby money, would you have it on a website?” Lacson said.