SONA 2015: DPWH: From most corrupt to PNoy admin's slow-spending agency? 

Before President Benigno Aquino III assumed office in June 2010, the Department of Public Works and Highways (DPWH) has been tagged as the "most corrupt" line ministry in the Philippines. What has changed since then? 

 

In a text message to GMA News Online, Public Works Secretary Rogelio Singson lists the major accomplishments of DPWH under his helm: key reforms in procurement and bidding, reduction of corruption, promotions of personnel based on merit and performance, clear direction and programs to improve quality and safety of national roads and bridges, and the improvement of access to tourism destinations. 

 

The DPWH is one of Aquino's favorite agencies to brag about in previous State of the Nation Addresses (SONA). 

 

In his fifth SONA last year, Aquino lauded DPWH for saving P28 billion of government funds as a result of a simplified bidding process to curb indiscriminate fund releases. 

 

"Sa pamumuno ni Secretary Babes Singson ng DPWH: Bawal ang tongpats, bawal ang bukol. Tinapalan na ang mga butas sa lumang sistema, at pinatag ang proseso sa ahensya," Aquino said. 

 

Through it all the DPWH was able to fix and build 12,184 kilometers of roads, Aquino said. 

 

"We do the same number of approved projects with the same specifications, same number of manpower, but complete them with lesser amount – thus resulting in savings," Singson previously said. 

 

While President Aquino attributed the DPWH savings to his administration's platform of good government, there are those who criticize the underspending that has contributed to a weak economic output as measured by the gross domestic product (GDP). This was during the first nine months of 2014.

 

The economy rebounded in the fourth quarter, growing by 6.9 percent to boost the full-year GDP expansion to 6.1 percent.

 

 

In an assessment of the 2014 fund disbursements, the Department of Budget and Management (DBM) listed the DPWH as one of nine government agencies which "underperformed" last year. 

 

"Other reasons affecting fund utilization point to the structural problems/inefficiencies and long standing constraints that hamper project implementation and slow down payment processes," the DBM said. 

 

The delays in issuing documents to contractors have resulted in unspent funds totaling P18.1 billion, the Budget Department noted. The DPWH was advised to increase the members of its Bids and Awards Committee on account of the "complex" procurement needs. 

 

Last year, the Aquino administration underspent up to P303 billion or 13 percent of the national budget. 

 

 

Banks, credit rating agencies and the International Monetary Fund have revised their respective growth forecasts for the Philippines this year, partly due to the slowdown in government spending.

 

In the first quarter, fiscal spending totaling P504 billion was 13 percent short of the programmed P582 billion while the deficit amounting to P33.5 billion also missed the government's P98.1 billion target.

 

 

2016 budget

Senators have also expressed concern over the Aquino government's underspending despite the consistently-approved higher national budget proposed by the administration for the past five years.

 

From DPWH's P110.6 billion in the 2011 General Appropriations Act – the first budget appropriation passed by the Aquino administration – the infrastructure agency's budget has ballooned to P303.2 billion in 2015.

 

In the proposed P3.002-trillion budget for 2016, the DPWH is getting P401.14 billion.  

 

The Senate committee on finance, led by Senator Francis "Chiz" Escudero, said it will scrutinize the details of the 2016 budget to address the problem of underspending that has hampered economic growth in recent years. 

 

"Nagkukumahog ang Congress na ipasa ito nang madalian pero pagdating sa implementation bumabagal naman dahil sa dami ng spending humps. It is useless to appropriate huge sums on time when these are spent slowly," Escudero said. 

 

According to Singson, budget priorities for 2015 to 2016 covers the major maintenance and replacement of national bridges, better drainage on primary roads, and flood control projects. – VS/JJ, GMA News