Kickback claim an attempt to destabilize the Duterte admin – DBM

The Department of Budget and Management (DBM) on Tuesday denied that the Department of Public Works and Highways' (DPWH's) P100-billion in payables restored the so-called "kickback systems."

The DBM said in a statement that the allegation, made House Appropriations Committee chairman Rep. Rolando Andaya Jr., was an attempt to destabilize "the good work of DBM and the Duterte administration."

"We reiterate that the DBM only releases spending authority and notice of cash allocation," it said.

"Implementing agencies are the ones who engage contractors, through open and competitive bidding, for delivery and payment of goods/services," it added.

The DBM also explained that it had released funds to cover its full-year cash requirements, including payments for due and demandable obligations in fiscal year 2018.

This was reflected in the actual disbursement releases of the DPWH in 2018 amounting to P560.4 billion.

"The original disbursement program of the DPWH was only P516 billion, before submitting an additional request of P44.4 billion in cash allocations in September 2018. This put their 2018 disbursement program at P560.4 billion, which the DBM already released in full," the Budget Department explained.

The DBM said it issued Circular Letter No. 14 series of 2017 on Cash Planning Reports to remind all departments, especially the top ten spending agencies, to be more prudent in the planning of their monthly disbursement programs ahead of time.

"They are encouraged to broaden the monitoring of the implementation of and payment for the services provided by their contractors. The Bureau of Treasury (BTr) and DBM have already started assisting the DPWH in its cash planning and forecasting operations."

The DBM also said that original budget request of the DPWH for its budget in 2019 was P652 billion.

Initially, P480.2 billion was approved but P75.5 billion was added later to bring the total DPWH budget to P555.7 billion to meet the infrastructure spending target of the Development Budget Coordinating Committee (DBCC) at 5 percent of gross domestic product (GDP).

"No less than DPWH undersecretary Maria Catalina Cabral admitted this as being part of the budget preparation process on the February 8, Friday hearing of the House Committee on Appropriations," the DBM emphasized.

"The DPWH budget of P555.7 billion was then presented to the Cabinet and approved by President Rodrigo Duterte in the Cabinet meeting held on July 9, 2018."

The DBM then condemned the imputation vices, defects, acts, or omissions put forward by certain personalities, under the guise of public service, to the discredit and contempt of the DBM as an institution.

"Not only are these allegations misplaced—as  the DBM is not the proper party to address such claims—they are exaggerated and sensationalized to serve a political agenda and to destabilize the good work the DBM and the Duterte administration have done," it said.

The DBM took note that Philippines is first in Asia for budget transparency according to the Open Budget Survey by the International Budget Partnership (IBP).

"With a score 67 out of 100, the DBM is one of the best budget institutions in the world. This is a feat by the current DBM and Administration. Needless to say that the DBM is transparent, with all its actions being in accordance with pertinent laws, rules, and regulations."

"We urge the public to be critical against the baseless accusations being peddled. The DBM as an institution has never been political, and we denounce the use of the department’s good name and reputation for political causes." — John Ted Cordero/DVM, GMA News