COA issue, plunder case raised as CA panel endorses Balisacan's NEDA appointment

A Commission on Appointments panel on Tuesday endorsed the confirmation of Socioeconomic Planning Secretary Arsenio Balisacan's ad interim appointment even as the panel discussed a Commission on Audit report and a plunder case involving Balisacan.

During the CA Committee on Tourism and Economic Development hearing on Balisacan's appointment as chief of the National Economic Development Authority (NEDA), Surigao del Sur Rep. Johnny Pimentel asked for the status of a COA order seeking the return of P73.64 million worth of incentives that Balisacan and several NEDA officials received from 2010 to 2012.

The incentive was called the Cost Economy Measures Award (CEMA) and the funds used for this were from the savings of NEDA's maintenance and other operating expenses, Pimentel said.

COA had determined that the grant of the incentives did not follow the state audit agency's rules and regulations as the realignment of the funds was not authorized by the Department of Budget and Management, Pimentel added.

Baliscan explained that he was only appointed to NEDA in 2012. Hence, he was not part of the COA report in 2010 and 2011.

He then mentioned that the COA proper had already cleared him from any liability.

"Your honors, may I note that in a COA en banc decision dated January of this year, January 2022, the COA found good faith on the part of approving and certifying officials including myself and that is because NEDA was never forewarned about the defects of the grant of CEMA as the previous grants thereof were not declared illegal or irregular," he said.

However, Pimentel was not convinced that COA had absolved Balisacan from the case, citing the experiences of some local government officials who were not completely exonerated from COA's order to return money that was determined to be an irregular expense.

"As per your statement, sabi mo inabswelto kayo pero you know what, Mr. Secretary? I have seen LGUs who did the same pero humingi rin sila ng MR. But I have never heard of any local government unit that was absolved of the disallowance with granting illegal incentives. Kaya I am surprised that in your case, which is a bigger amount, P73.6 million, eh pumayag yung COA," he said.

CA Majority Leader and Camarines Sur Rep. Luis Raymund Villafuerte then asked if Balisacan returned the incentive that was granted in 2012.

The NEDA chief said he did not return any amount to COA. He tried to explain that his MR was granted by COA proper.

Balisacan reiterated that the COA Proper held that the granting of incentives was committed in good faith but Villafuerte manifested that the state audit agency had absolved the NEDA official from the case "in the guise of good faith but the action was not legal."

Pimentel then urged Balisacan to provide the CA a copy of the COA Proper decision because "he cannot accept the fact" that the NEDA official was absolved from the case.

Under COA Decision No. 2022-094 signed by former COA Chairperson Michael Aguinaldo and Commissioner Roland Pondoc, the Commission proper partially granted the motions for reconsideration of Balisacan and nine other individuals who served as officials and employees of NEDA but affirmed with modification the disallowance of the CEMAs granted to them.

In his motion for reconsideration, Balisacan said that he acted with due diligence in certifying and approving the 2012 CEMA.

He explained in his MR that it was not his task to determine how savings had been generated and accumulated and it was reasonably expected of them to rely in good faith on the report of their subordinates.

"Wherefore, the Motions for Reconsiderations of the officials and employees of the National Economic Development Authority... are hereby partially granted. Accordingly, Commission on Audit Decision No. 2017-406 dated December 13, 2017 is affirmed with modification," the COA proper ruling read.

"The officials who certified/authorized/approved the payment are no longer solidarily liable for the amount of disallowance. However, the liability of the payees for the amounts that they received is reinstated," it added.

Clearance

Apart from the disallowance issue, Pimentel also raised a plunder case involving Busan Rail in which Balisacan was among the officials charged.

Balisacan said he was included in the case because he was part of the Government Procurement Policy Board. But he explained that he was not part of the agencies which were implementing the project.

"Then-Ombudsman Conchita Morales dismissed this case and as you can see in the folder that was submitted to the commission, I was cleared by the Office of the Ombudsman and the COA and the other agencies, your honor. I was given clearance by all these agencies including the Office of the Ombudsman," Balisacan said.

Senate President Juan Miguel Zubiri presented to the CA panel the clearance from the Office of the Ombudsman which said that Balisacan had no pending criminal and administrative cases before the body.

"Just for the record, we have the certification from the Ombudsman, stating that the gentleman, Secretary Balisacan, has no pending criminal and administrative cases with the Ombudsman," Zubiri said.

Pimentel ended his interpellation, saying the certification submitted to the panel was "good enough."

The CA panel eventually endorsed the confirmation of Balisacan's ad interim appointment.

In May, President Ferdinand "Bongbong" Marcos announced that Balisacan would again head NEDA.

Balisacan previously led NEDA under the administration of the late President Benigno "Noynoy" Aquino III, before moving to the Philippine Competition Commission where he has served as its pioneer chairperson since January 2016. — DVM, GMA Integrated News