Press Release
October 14, 2009

Pia: Safeguards needed to prevent abuse of P12-billion calamity fund

Senator Pia S. Cayetano today batted for the inclusion of clear spending guidelines in Joint Resolution No.28 to ensure the efficient and transparent use of unprogrammed funds amounting to P12 billion for the relief and rehabilitation of typhoon-damaged areas.

"Safeguards must be made a requirement by Congress whenever it deliberates on lump-sum appropriations, especially in the case of these calamity funds where we are talking about billions in taxpayers' money that will be spent with dispatch," said Cayetano, Chairperson of the Senate Committee on Social Justice.

"Even in emergency situations, lawmakers must make it a point to set clear guidelines outlining the system for the release, distribution and implementation of lump-sum funds."

She noted that the proponents of the resolution themselves admit that the usual bidding process would have to be relaxed to allow the immediate purchase of supplies and equipment needed for relief and rehabilitation of damaged areas using the calamity funds.

"I am all for the enactment of the calamity funds, but the resolution must be amended to incorporate specific guidelines to ensure their efficient and transparent utilization. The law must also clearly identify other line agencies that will take part in the decision on how the funds will be used, such as DOH, DA, DepEd, DSWD and DPWH."

"We can't just allow the unconditional release of lump-sum appropriations to any single agency (NDCC) because this will open the floodgates to possible misuse or abuse. It would even be a bigger calamity should these funds fall into the wrong hands."

Cayetano said she found JR No.28 ambiguous with respect to fund usage, noting that the last portion of the resolution states that "[u]tilization of the fund shall be in accordance with the procedure and distribution system of the National Disaster Coordinating Council."

"Leaving billions of pesos to the discretion of a single agency is dangerous. I caution the Senate from approving the House resolution in its present form given its ambiguity and lack of specific guidelines," she concluded.

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