Defensor seeks DOF explanation on P1.86-T loans

House Committee on Public Accounts chair Mike Defensor on Thursday called on the Department of Finance (DOF) to explain the P1.86 trillion worth of loans that the government accrued from January to July this year.

“People are asking questions about the borrowings, particularly where the money was used and why did we have to borrow at the time each loan was incurred," Defensor said in a statement.

"For the sake of transparency, the DOF should account for the debt for the first seven months,” he added.

Defensor said that while he and many others recognize the need for the government to borrow from foreign and domestic lenders to augment the funds for the response against COVID-19, the DOF, along with the Department of Budget and Management (DBM), has to explain further to clear up issues.

"For instance, how much of the P1.86 trillion went to COVID-19 response measures, how much for infrastructure, how much for debt repayment, and how much for salaries, if any?” he said.

GMA News Online has already contacted DOF Assistant Secretary Tony Lambino for the department's comment to Defensor's call, but he has yet to respond as of posting time.

Defensor pointed out that during the budget hearing of the Development Budget Coordination Committee, Budget Secretary Wendel Avisado said that as of August 28, the DBM had already released a total of P389 billion for COVID-19 response.

Of the amount disbursed, P266.53 billion was sourced from discontinued projects, activities and programs (PAPs) in the 2019 and 2020 budgets, while P102.06 billion came from special purpose funds and P20.48 billion from regular agency appropriations, Avisado said.

Around P211 billion of the same amount was used for the first and second tranche of emergency cash subsidies for the 18 million low-income families under the Bayanihan to Recover as One Act, he added.

Defensor urged the DBM to identify the PAPs that have been scrapped so that the public will no longer expect these.

“They can post these in their website, indicating the particular PAP, its funding and location. If residents feel strongly that a discontinued PAP is still needed in their community, they could push for its funding in future budgets by communicating to lawmakers, their local officials and even directly to the DBM,” he said.

At the same time, Defensor also asked the DBM to inform Congress and the public on the amount of savings that the government has accumulated since the lockdown started in March.

Due to work-from-home arrangement in many government offices, the lawmaker said the government should have saved billions from electricity, water, telephone, internet, office supplies, vehicles, fuel, and other maintenance and operating expenses.

Defensor earlier suggested that the MOOE allocation be reduced by at least 20% — equivalent to P320 billion  — to be used to augment the government's COVID-19 response.  —KBK, GMA News