No hand in ₧332-B ‘fund scam’ for flood control projects–DBM
THE Department of Budget and Management (DBM) has denied that it had a hand in the alleged “fund scam” involving P332 billion allocated for “nonexistent” floodcontrol projects.
It also called House Majority Leader Rolando G. Andaya Jr.’s allegations “irresponsible” and “misleading.”
“The Department of Budget and Management expressly denies the facilitation of a fund scam in the Flood Mitigation Structures and Drainage Systems program of the Department of Public Works and Highways [DPWH],” the DBM said in statement on Monday.
Andaya said in a House committee hearing that P332 billion was allocated for the “nonexistent” flood-control projects, which purportedly comprises of P213 billion worth of appropriations in 2017 and 2018 and the proposed allocation of P119 billion for 2019.
“First, the amount representing the proposed allocation for FY 2019 cannot be accounted for yet. There are no existing projects for 2019 as the 2019 budget has yet to be legislated, much less implemented,” the DBM said. “Second, the amounts allocated in the FY 2017 and 2018 GAA were reviewed, amended and approved by both Houses of Congress before approval of the President.”
The department has also made it clear that it did not accord preferential treatment to certain areas or districts.
“The DBM has no hand in determining the projects that should be implemented and in which areas or districts. This is the job of the implementing agency; in this case, the DPWH. There are technical requirements set by the DPWH that need to be satisfied for projects to be considered for inclusion in their project listing. In the case of flood control works, the requirements are listed in DPWH Department Order 23, Series of 2015,” the statement read.
Even then, the DBM said it is not privy to the specific project listing for the projects under each program and region during budget preparation.
“The agency budget proposal submitted by the DPWH will only present their target allocation for the upcoming fiscal year by program [i.e., roads, bridges] and total allocation per region. The DBM evaluates each program based on the program’s budget utilization rates in previous years,” it said.
The House Committee on Rules is also set to subpoena top officials of DPWH as it eyes a conspiracy in the multibillionpeso flood-control scam.
Earlier, Andaya said the testimonies during a public hearing in Naga indicated a top-level conspiracy in the multibillion-peso flood-control scam involving at the very least Budget Secretary Benjamin E. Diokno and a senior DPWH official.
However, he immediately cleared Public Works Secretary Mark A. Villar.
Andaya added that after the public hearing was conducted, more whistle-blowers have come forward to “spill the beans on anomalous budget practices and allocations by DBM.”
Andaya has accused Diokno of acting alone and allocating huge f lood-control funds in Casiguran, Sorsogon, where his inlaws are politicians and owned the Aremar Construction.
According to Andaya’s statement, Casiguran Mayor Edward Hamor, Aremar’s biggest shareholder, is the husband of Sorsogon Vice Gov. Ester Hamor, the mother of Diokno’s son-in-law, Romeo Sicat Jr., who is married to the budget secretary’s daughter, Charlotte Justine.