Sen. Chiz asks COA: How should unused ‘DAP’ funds be liquidated?

The Senate Finance Committee chaired by Sen. Francis “Chiz” Escudero asked yesterday the Commission on Audit ( COA) for a clear, uniform ruling on the liquidation of unused or unobligated government funds that came from the controversial multibillion-peso Development Acceleration Program (DAP).

Escudero made the call during a public hearing he held yesterday on Senate a resolution filed by Sen. Miriam Defensor Santiago seeking an inquiry, in aid of legislation, on the alleged ₱3.787billion unaccounted DAP funds of four government- owned or -controlled corporations (GOCCs) since the DAP was introduced on Oct. 27, 2011. GOCCs must, under a Supreme Court decision, return unused DAP funds. “We are ordering all DAP funds, not used, must be returned, based on the Supreme Court ruling that, if

used, there is no need to return. There are agencies that used all, some agencies not, if not, if unobligated or utilized balances, we ordered that they be returned. There is a problem in liquidation that is why we ask for a clear ruling on liquidation, particularly on researches that there should be a deadline,” he told Senate reporters. Escudero noted that liquidation in 2013 improved but liquidation in 2014 further improved at 60 percent. “There were ₱2.4 billion supposed unutilized but apparently 80 percent was utilized and about 60 percent has been liquidated,” he added. Santiago cited a 2013 COA annual financial report on GOCCs released only last year that of the ₱3.787 billion, ₱2.04 billion in DAP funds were unused by the National Electrification Administration ( ₱1.58 billion); Philippine Institute for Development Studies ( ₱560 million); National Dairy Authority ( ₱167.44 million); and Philippine Fisheries Development Authority ( ₱98 million). The COA report stated that the ₱1.382 billion that were actually used by the GOCCs remain unliquidated as of last Dec. 31, 2013. The DAP reportedly was intended to speed up public spending and boost economic growth. The good intentions of those who conceptualize the DAP were soured by allegations that some of the funds were used to ‘’bribe’’ senators to convict then Supreme Court Chief Justice Renato Corona in the Senate impeachment trial in 2011. On July 1, 2014, the Supreme Court declared certain acts and practices under the DAP as unconstitutional. The objective of the DAP in accelerating government spending was not attained because of delays or non-release of funds to project proponents.