Press Release
January 4, 2009

Congress urged to put safeguards against misuse of lump sum funds

Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) today urged the bicameral conference committee of Congress to agree on putting safeguards in the 2009 national budget to ensure that various lump sum appropriations are spent properly.

Pimentel expressed the hope that the House of Representatives will support the special provisions that were incorporated by the Senate into the budget bill to prevent the lump sum funds from being misused or utilized for purposes other than those allowed by the budget law.

He said such irregularities are likely to occur if the Chief Executive is given too much discretion in the utilization of such funds and Congress does not put up the necessary safeguards in the exercise of its power over the purse.

"In the absence of a mechanism by which these lump sum funds can be subjected to some kind of regulations or restrictions, there is a danger that these could be diverted to purposes not authorized under the budget law, which will make a mockery of the appropriation power of Congress," he said.

For instance, Pimentel said that the Senate has inserted a provision that in the disbursement of the Pl billion Kilos Asenso Fund, the executive branch must ensure an equitable distribution of the fund among needy local government units.

This particular fund, he said, should not be used by the President to dispense favors as she pleases for local government officials as a reward for their loyalty or for joining the administration party.

In seeking the support of the House, Pimentel cited the fact that the Senate had inserted similar special provisions in past national budgets, but these had been vetoed by the President.

He said he was glad that the House contingent in the bicameral conference committee has initially agreed on a Senate proposal to form a congressional monitoring committee to keep track of the disbursement and utilization of funds under the 2009 budget and to require the executive branch to regularly furnish reports on fund releases to both chambers of Congress.

Pimentel also stressed the importance of putting in place a check and balance mechanism in the use of other lump sums such as the Pl.2 billion intelligence fund, the P42 billion Agriculture and Fisheries Modernization Fund and other special purposes funds tucked into the appropriations of various line departments whose disbursements are under the control of the President.

He said the institutionalization and enforcement of these safeguards is necessary to prevent a repetition of the P728 million fertilizer fund scam in 2004.

"Without these safeguards, we are afraid of a situation wherein the lump sum funds are easily prone to misuse by unscrupulous public officials. And the temptation to do that becomes stronger with the 2010 elections drawing near," Pimentel said.

He also echoed the hope that the bicameral panel will be able to approve the final version of the P1.4 trillion national budget during the congressional recess so that it can be submitted to and ratified by the two legislative chambers upon the resumption of the regular session on Jan. 19.

He said the approval of the new budget should not be delayed any longer so that the various departments and agencies can start implementing their programs and projects as early as possible.

Pimentel also warned that the longer the reenacted 2008 national budget is in force, the greater is the tendency to transform the old budget into a mere discretionary fund of the President.

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