Abad accused of ‘curing’ SC decision on DAP

MANILA, Philippines – Budget Secretary Florencio “Butch” Abad was accused of “curing” the Supreme Court’s decision outlawing some practices of President Benigno Aquino III’s Disbursement Acceleration Program (DAP).

Budget Secretary Florencio “Butch” Abad. RYAN LEAGOGO/INQUIRER.net

During the Development Budget Coordinating Committee hearing at the House of Representatives on Wednesday, Bayan Muna Representative Neri Colmenares cited the executive’s move to redefine the term “savings” in the national budget bill.

He said the executive’s proposed redefinition of savings in the new budget is for these unspent funds from projects discontinued and abandoned even within the middle of the year may still be pooled as savings.

The executive effectively removed the word “final” attached to the word “abandonment” in the original definition, to reflect that the projects may be discontinued at any time of the year, while the unspent funds may be pooled as savings, Colmenares said.

This is effectively a redefinition of the practice of savings the Supreme Court ruled as illegal. The high court had ruled that the usual practice of using these funds before the end of the fiscal year is unconstitutional.

The DAP became controversial after Senator Jose “Jinggoy” Estrada claimed funds from the stimulus program were given as incentives to senators who voted to convict ousted Chief Justice Renato Corona.

The DAP had been tagged as the source of the president’s “pork barrel funds,” even at the height of a corruption scandal involving Congress’ pork funds.

For his part, Abad said the executive wanted to redefine savings after the Supreme Court outlawed the original practice of savings in their decision about Aquino’s stimulus program.

He said yes when asked by Colmenares if he thinks the redefinition would effectively make the SC decision moot.

Abad said the Supreme Court imposed “rigidities” in the usual practice of using unspent savings for other projects.

“The constitution mandates the Congress to define what savings is,” Abad said.

“Hindi kami ang nagbago (ng definition). Binago ng SC. That’s why we are going back to Congress,” he added, noting that under the Constitution only Congress can define savings in the budget.

Colmenares said Abad practically admitted that the executive wanted to “cure” the DAP decision.

“Thank you for your admission that the redefinition cures the DAP decision,” Colmenares said.

The budget committee, chaired by Abad in representing Aquino finance team, is composed of the country’s main economic managers, among them Finance Secretary Cesar Purisima, Internal Revenue chief Kim Henares, Neda chief Arsenio Balisacan, and Bangko Sentral ng Pilipinas Governor Amado Tetangco Jr.

The committee aims to assess the overall economic targets, expenditure levels, revenue projection and the financing plan in relation to the proposed P2.6 trillion national budget for 2015.