SPENDING, EATING SPREE AT CAPITOL

DAP funds spending: *P22.265M in dole outs during 2013 campaign period *P207,500 for catering services in just one day

THE bulk of the Disbursement Acceleration Program (DAP) funds allocated to the Iloilo provincial government from 2011 to 2013 was spent on dole outs and catering services.

According to the http://www.officialgazette.gov.ph/featured/dap/, the DAP initiated by the administration of former President Benigno Aquino III was envisioned as “a reform intervention to speed-up public spending and to boost economic growth.”

“It is not a fund, but a mechanism to support high-impact and priority programs and projects using savings and unprogrammed funds. DAP also enabled the government to introduce greater speed, efficiency, and effectiveness in budget execution,” it added.

The DAP, however, was shrouded with controversy after the Supreme Court on July 1, 2014 declared it as illegal and unconstitutional  on the following grounds:

• the creation of savings prior to the end of the fiscal year and the withdrawal of these funds for implementing agencies

• the cross-border transfers of the savings from one branch of government to another

• the allotment of funds for projects, activities, and programs not outlined in the General Appropriations Act.

The High Tribunal affirmed the unconstitutionality of DAP in February 2014.

The way the administration of Gov. Arthur Defensor Sr. spent the capitol’s DAP allocations, especially during the 2013 campaign period, has prompted former Iloilo provincial administrator and freelance journalist Manuel “Boy” Mejorada to mull criminal and administrative cases against national and local officials.

Mejorada said the Defensor administration may have squandered DAP funds to propel its political agenda during the 2013 elections, citing documents from the Provincial Administrator’s Office.

Mejorada secured copies of fund transfers pertaining to DAP funds downloaded to the capitol after asking for a copy of the liquidation and utilization reports in his letter dated Aug 30, 2018.

He requested for the liquidation reports after the Commission on Audit’s (COA) 2017 Annual Audit Report noted that the capitol has yet to completely account for the DAP spending and remit the remaining amount as of December 2017.

The Capitol, through acting Provincial Administrator and Legal Officer Dennis Ventilacion provided copies of ledgers showing how more than P46 million in DAP funds were used from December 2011 to March 2013.

But Atty. Ventilacion said in the cover letter that they cannot provide the complete details of the liquidation reports, which were already submitted to COA through the Provincial Accounting Office, as the Provincial Administrator’s Office does not keep copies of such reports as a matter of procedure.

Based on records from the Department of Budget and Management (DBM), the capitol was allocated P74.05 million in DAP funds in seven Special Allotment Release Orders (SARO) with the corresponding numbers, dates of release and amounts:

• G-11-02160, Dec. 22, 2011 (P5 million);

• G-12-01149, Dec 7, 2012 (P1 million);

• G-13-00004, Jan 7, 2013 (P5 million);

• G-13-00545, Mar 4, 2013 (P40.5 million);

• G-13-090005, Jan 9, 2013 (P7 million);

• G-13-00746, Mar 15, 2012 (P8.15 million);

• G-13-00873, Mar 22, 2013 (P2.4 million).

Of the seven SAROs, only three allocations were downloaded to the capitol accounts – G-11-02160, G-13-00004, and G-13-00545 totaling P50.50 million.

Notably, a big chunk of the Capitol’s DAP allocations were released in January and March 2013 which fell under the election season.

Equally interesting is the fact that P40.5 million was released in the thick of the 2013 elections. At that time, Defensor ran against Iloilo fourth district Rep. Ferjenel Biron.

‘MALVERSATION’    

In an interview with The Daily Guardian on Air over Aksyon Radyo-Iloilo on Sept 22, 2018, Mejorada said Defensor could be held liable for malversing the DAP funds, citing the documents handed to him by the capitol.

Based on copies of ledgers secured by The Daily Guardian, P5 million (SARO No. G-11-02160) was spent on the construction of the Dumangas-Balabag Road, with the excess amount of P1.5 million returned to the national treasury.

Another P5 million (SARO No. G-13-00004) was released as educational assistance to children of indigent families and those living in remote areas from Mar 19 to July 11, 2013. It is worth noting that the educational aids were released during summer vacation and in the heat of the campaign season.

But Mejorada raised the biggest question on the utilization of funds in SARO No. G-13-00545 totaling P40.5 million which was also released in the middle of the campaign season on Mar 4, 2013.

The subsidiary ledger released by the capitol indicated that P36.607 million was disbursed on educational and financial/livelihood aids to students and various non-government and people’s organizations (NGO-PO).

The documents showed that from Mar 19 until May 9, 2013, or four days before the elections on May 13, the capitol released a total of P22.265 million in educational and financial/livelihood aids.

Mejorada raised a red flag on the matter saying that aside from the release of public funds in the middle of the election season, deeper scrutiny must be made into the credentials of recipient NGO-Pos.

“COA and DBM have very strict rules on releasing public funds to NGOs and Pos, specifically on their credentials, legal personalities, and accreditations. Sadly, we cannot look into the details because the Provincial Administrator’s Office does not have the copies which I find strange because they should have their own copies for their reference,” he added.

ONE-DAY EATING SPREE

A closer look into the ledger for the P40.5-million DAP utilization showed seven tranches of payment for catering services in a single day.

The documents indicated that the capitol paid a total of P207,500 for catering services on June 20, 2013 to only one provider – KRS Catering and Services.

Interestingly, the payments were released in a single day, too, on Oct 15, 2013. The payments ranged from P16,500 to P80,000

Mejorada said spending P200,000 for a day of eating is unconscionable and irresponsible.

“DAP was supposed to stimulate the economy through public spending on significant and high impact projects like infrastructure. But at the capitol, their notion of stimulation and progress is stomach development,” he added.

Mejorada said he has no choice but to file cases against Pres. Aquino, former budget and management secretary Florencio “Butch”Abad, and Gov. Defensor Sr. for alleged malversation of public funds.

“I always thought that Gov. Defensor stood for clean and upright governance. But he destroyed his legacy all because of DAP which was declared illegal and unconstitutional,” he said.

The former capitol executive suspects that Defensor wants his son, third district Rep. Arthur Defensor Jr, to extend their reign at the capitol to hide other purported dubious deals at the capitol.

“Slowly but surely I will dig deeper into these deals so that the people will know what became of reform and change that Defensor bannered during the campaign season,” Mejorada said.

SOURCE: The Daily Guardian

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