Press Release
October 6, 2009

Transcript of Senate media interview with Sen. Miriam Defensor Santiago

On the state of calamity possibly lasting for a year

I'm opposed to the declaration of the state of calamity lasting for one whole year for the following reasons: First, should the state of calamity last for a year, it would be extremely counterproductive. The calamity fund of every local government unit shall be open for appropriation. That amounts to about P13.3 billion. That would allow the local government unit to get 5% of its total expected revenues. The longer the state of calamity extends, the more abuses can be expected.

My proposal is to limit the declaration of the state of calamity to just three months. It is necessary that the flood victims should get on with their lives. If we are going to spread out the release and use of the calamity fund to one whole year, there will always be an unrealized expectation of a return to normalcy. The faster you lift the state of calamity, the better for the funds.

Another consequence of the declaration of the state of calamity is that the President will have power to transfer appropriations. Normally, this is not allowed, but when there is a state of calamity, she can juggle the funds. There will be extreme pressure from many vested interests to transfer appropriations, but not necessarily to the most calamity-stricken areas. In my view, it makes the President even more politically vulnerable to politicians.

The final adverse consequence is that under the Government Procurement Reform Act, if there is a state of calamity, there does not have to be a process of bidding or auction. Negotiated purchases will be allowed. You know that is a very fertile source of corruption.

For these reasons, I humbly suggest that the state of calamity should be limited to three months or not later than the end of the year. One year would just be too long.

We have sources of funds to address this calamity. We don't need a supplemental budget. Last year, when we were discussing the budget for 2009, Congress allocated appropriations even beyond the amounts that were sought by Malacañang for certain government offices. If we take back all those amounts that were added to the budget of certain government departments, we will be able to source the much-needed funds for our rehabilitation efforts.

We can easily augment the calamity funds simply by asking the President to exercise her power to transfer appropriations. These are the government departments whose budgets should be transferred for the rehabilitation:

1. Department of Public Works and Highways (DPWH). Its budget was increased by P28.2 billion for 2009.

2. Department of Agriculture (DA). Its budget was increased by P2.9 billion for 2009.

3. Motor Vehicle Users Charge (MVUC) or Road Users Tax. For 2009 alone, it is expected to collect around P9 billion. If one-third of that amount is reprioritized for NCR, Region IV-A, and Region III roads, that would amount to P3 billion.

I have identified three sources of funding. We should just return to the national treasury what Congress appropriated last year that was over and above the amounts that were requested in the President's budget. I have identified P28.2 billion from the DPWH; P2.9 billion from the DA; and P3 billion from the MVUC, for a total of P34.1 billion. That should be enough, including a modern sewage system.

I do not want a prolonged state of calamity, because in the same way that power tends to corrupt and absolute power corrupts absolutely, calamity tends to corrupt. The longer the declaration of a state of calamity, the longer the corruption.

I bill I filed provides that the funds for the rehabilitation of our roads and highways after the typhoons should be taken from the Road Users Tax. For 2009 alone, the income from that source of funding is already P9 billion. But now they made it into a supplemental budget proposal, which means it is separate and independent from the national budget. But we don't need a supplemental budget.

I already showed you how I computed the sum of P34.1 billion for rehabilitation efforts, without a supplemental budget. How are you going to raise the P10 billion provided for in the supplemental budget within three months? That would be a monstrous responsibility. Realigning the funds would be much faster and much cleaner. The mere fact that the state of calamity allows the government to forego public biddings and just negotiate procurements is already an indication that something will go wrong. As you know, negotiations are always corrupted by kickbacks and commissions.

Is it possible that the two agencies have used up those funds?

That is not possible because we are not yet finished with fiscal year 2009.

Malacañang submits a budget in the amount it estimates is what the country can afford and what a particular department needs. If Congress adds to that amount, then it means it has moved other amounts from other departments. There must be strong reasons on why Congress has done that, and the reason, of course, is political.

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