The “parliamentary courtesy”granted to Vice President Sara Duterte by the members of the House in August 30,2023 when she skipped direct scrutiny ofher twin-office budgets may have inadvertently triggered consequences surrounding an issue that overshadowed the entire budget deliberations and beyond.
Currently, debates around how confidential funds are allocated and spent by civilian agencies—including the Office of the Vice President and line agencies like education, agriculture, and natural resources—and now even by local government units, continue to dominate discussions in both traditional and social media.
The controversy amplified during the September 27, 2023 plenary debate on the proposed OVP budget. House Deputy Minority Leader France Castro of the ACT Teachers Partylist, who initially questioned the sizable confidential fund of VP Duterte, was visibly stunned.
The shock stemmed from a disclosure by Senior Appropriations Committee Vice-Chair Rep. Stella Quimbo. The disputed 2022 P125 M OVP Confidential Funds, previously believed to have been expended in 19 days as claimed by Rep. Castro, were actually used up in a mere 11 days.
This startling revelation notonly resonated throughout the nation, sparking a social media storm, but also prompted deeper constitutional introspection.
Initially, Congress seemed hesitant to delve into the matter anew. However, due to increased scrutiny, discussions around confidential funds allocated to various civilian departments that typically don't have security roles became more apparent now compared to previous years’ budget deliberations.
The timing is pivotal, though. Of the proposed 2024 national budget of P5.768 trillion, the proposed CIF is a staggering P10.14 Billion, including allocations for both the Office of the President and the OVP. In contrast, the executive only proposes P9Billion for its Rice Buffer Stocking Program, even with the looming supply crisis and the steadily rising prices of the country’s staple food.
As a result, too, of the controversy, even the confidential expenses of LGUs are also now under close public scrutiny, given the equally large allocations earmarked on this secretive expenses by local chief executives.
Amid this fiscal maelstrom, the members of the Makabayan Bloc in the House of Representatives undeniably emerged as confident advocates for fiscal transparency and responsibility.
It's worth noting that the Bloc’s initial attempt to spotlight the issue of the P125 Million 2022 OVP Confidential Fund during the House Appropriations Committee budget presentation was thwarted by Majority members.
They cited the overused “parliamentary courtesy” granted to Executive Officials, which in essence shields these officials from direct public scrutiny.
However, the Makabayan Blocpersisted. Their incisive insights during committee and plenary deliberations garnered public attention, thanks in part to the live streaming of proceedings on social media platforms.
Many lauded their meticulous examination, particularly of the contentious Confidential and Intelligence Fund(CIF). It served as a beacon, ensuring the nation's already strained budget remains clear and transparent. They underscore the importance of ongoing vigilance in the face of government ambiguity.
For one, Rep. France Castrohas been instrumental in bringing the CIF debate to the forefront. Alongside her are fellow Makabayan Bloc members Kabataan Partylist Rep. Raul Manuel, an advocate for increased funding for state universities and colleges, and Gabriela Women’s Party Rep. Arlene Brosas, a champion for marginalized groups.Together, this trio ensures essential sectors, like the workers, farmers and indigenous peoples, receive the attention they merit.
Despite adversity, Rep.Castro remains unwavering in her commitment to fiscal transparency. Herrigorous interpellations and demands for clear explanations have been essentialin promoting transparency in an otherwise murky domain.
In an era where public trust is vital, Rep. France Castro stands as a beacon of integrity. Her fervor for upholding democratic ideals and ensuring accountability embodies the pivotal role principled legislators play in a democracy.
The next stage for further budget scrutiny is the Senate, especially after its rushed approval by House members on September 27, spurred by the certification of urgency from Malacanang.
At this point, the public expects Congress to genuinely reclaim its “power of the purse” and allow the CIF debate to lead to more judicious budgetary spending.
So, how essential forCongress to scrutinize the annual budget more diligently now, especially regarding lump-sum allocations like the confidential and intelligence funds(CIF)?
Public finance in the Philippines has always been a balance of admiration and skepticism.
In the past, it was the debates on the now unconstitutional Priority Development Assistance Fund(PDAP), a euphemism for legislative pork barrel, that bedeviled the country. There was also the equally unconstitutional Disbursement Acceleration Program(DAP), another euphemism for presidential pork barrel.
Now, a major point of contention is the allocation of "confidential expenses," especially to agencies that traditionally don't engage in security-sensitive operations. Confidential funds, by their very nature, are opaque and often escape regularscrutiny. This secrecy makes holding these funds accountable challenging since they don't undergo the same rigorous auditing process as other earmarked funds.
Even the Commission on Audit(COA) during the House budget deliberations recognized the need to re-examine guidelines for CIF allocation and disbursement, such as the Joint Circular No.2015-01, issued by the DBM, COA, DND, DILG, and the Government Commission forGOCC.
These large confidential funds with minimal oversight are enticing for those seeking personal gains, especially when these funds seem to sidestep established legal and procurement protocols.
Given these potential pitfalls, the clarion call for fiscal transparency emerging from the CIF debateis both praiseworthy and vital. This call protects the public's trust and the nation's fiscal health, now compromised by deficit revenue collections and burdened by trillions in debt.
The 1987 Philippine Constitution entrusts the "power of the purse" to Congress. This authority over the nation's finances ensures that the Executive cannot utilize the nation's resources without legislative oversight -- ideally.
The Supreme Court has underscored this balance, affirming in several decisions that fund appropriation is a legislative prerogative. While the Executive enforces policies, the Legislature controls the economic resources backing them, with the Judiciary ensuring these provisions adhere to the constitution.
Yet, in an era still markedby political patronage and a series of pork barrel scandals that shook Congress and the nation, this power seems more symbolic than actual. Over the years,with minor realignments to cater to its members' localized or parochial interests, Congress has generally rubber-stamped the national expenditure program proposed by the Executive.
However, given the changing global economic landscape and many countries, including the Philippines, grappling with severe post-pandemic financial crises, the power of the purse becomes even more imperative.
Again, this Congress"power of the purse" is not just a fiscal tool. It stands as a testament to the country’s democratic principles, emphasizing the balance ofpowers, fiscal responsibility, and public accountability.
As the nation navigates from pandemic-aggravated economic crisis, the significance of these principles and Congress's role in preserving them cannot be stressed enough.
In an ideal world, checks and balances to prevent misuse would shield confidential expenses. However, the Philippines has seen instances where the absence of strong oversight allowed potential misappropriation, even for regularly earmarked, not confidential, funds.
This leads to an essential question: How can the government ensure these funds serve their intended purposes exclusively?
Again, the secretive nature of confidential funds really makes them vulnerable to misuse. Without transparent oversight, there's potential for these funds to be redirected for purposes other than those intended.
A working democracy thrives on transparency and accountability. Awarding civilian agencies confidential funds undermines these principles.
The growing chasm of trust between the public and the government is exacerbated by the fact that while officials can expediently spend P125 Million in 11 days, average Filipinos must grapple with a meager P610 daily minimum wage amid escalating living costs.
In a country like the Philippines where resources are scant and every centavo is crucial, allocating undisclosed amounts to civilian agencies is certainly not the wisest use of public funds.
In the present proposed budget, for instance, a measly P1.1 Billion was allocated for the MSME Development Program. This translates to a little over P407 per small entrepreneur based on the 1, 076, 279 MSMEs as of 2021.
Thus, these “confidential” resources could be better utilized in sectors where their impact can be openly evaluated, such as more subsidies for state universities and colleges or funding for public hospitals and aid to farmers and senior citizens.
While there are those who argue that there are legitimate situations where such funds can probably prove beneficial, the potential for misuse is undeniable.
Former SC Justice Adolfo Azcuna, for instance, recently proposed that Congress should now pass a law establishing a transparent auditing framework that justifies allocation, defines intended use, and furnishes a mechanism for subsequent accountability.
A strong Congressional oversight was also proposed by Rep. Quimbo, with the formation of a committee composed of “three members from the majority and one from the minority(that) would have complete access to reports” on CIF that are submitted to COA.
While certain operations may remain confidential, ensuring accountability and curtailing misuse is equally paramount.
“If the mandate does not include the utilization of confidential or intelligence funds, then such agency should not get any appropriation”for CIF, argued Rep. Lagman.
Bayan Muna Chair Neri Colmenares is even more assertive: “If these civilian agencies need to do an important project, why don’t they ask for it in the budget just like other regular civilian agencies rather than lump this in an amorphous secret confidential fund. Lump sum amounts in confidential funds are not itemized and can be easily malversed. There have been anomalies in the hundreds of billions of pesos in regular budget items that are audited, how much more if these were placed in budget items that are not regularly audited like the confidential funds. What if these funds were spent on personal travel, or parties, or just went to the bank accounts of corrupt public officials?”
“No civilian agency should be allowed to have covert and secret confidential funds, period.No government agency should be given confidential found without fully accounting for their previous spending of their secret funds,” he added.
His sentiment is reflected in the proposed amendment to Section 81 of the approved General Appropriations Bill submitted by the Makabayan Bloc members which calls on Congress to “abolish confidential funds” from the allocation of any “government agency, GOCC, Constitutional Body and Local Government Unit.”
For the Philippines to successfully chart a course through its present challenges, fostering confidence in its fiscal management is crucial. And, reassessing the allocation of confidential expenses, particularly to civilian agencies, can no longer be ignored or be subject to the usual quidpro quo transactions between the executive and Congress.
Moving forward, dedicated legislators like Rep. France Castro, her Makabayan Bloc colleagues, independent House members like Rep. Edcel Lagman, and opposition Senators Risa Hontiveros and Koko Pimentel, certainly, offer aglint of hope. Their efforts suggest that confidentiality and transparency can coexist, fortifying the nation's democratic fabric.
Their relentless push for transparency and accountability in the handling of funds like the confidential expenses have led to heightened scrutiny and awareness, not only concerning CIF but also regarding the broader budgetary complexities.
Yet, the role of the public is indispensable. An informed and engaged citizenry should be at the forefront of holding their leaders to account and ensuring the judicious use of public funds. By demanding transparency and insisting on open discussion regarding where and how funds are spent, the public ensures that its best interests are always at the forefront of fiscal decisions.
The series of BantayBudget fora, both face-to-face andonline, conducted by civil society organizations on the ongoing Congress deliberations are a welcome initiative in this direction.
In this digital age, the proliferation of social media and the easy accessibility of information have equipped the public with powerful tools to monitor governmental actions.Citizens, now more than ever, have the capability to rally for change, to voice their concerns, and to hold leaders accountable in real-time.
The case of the CIF debate is a testament to this. It's not just about questioning the rapid expenditure of a significant sum in a matter of days. It’s about questioning the systems and processes that allowed for such an expenditure without the requisite transparency. It's about ensuring that every peso allocated from the public coffers is spent judiciously and for the benefit of the many, not the few.
As in the past, it is still true now: the future of the Philippines’ fiscal health and democratic principles rests not just in the hands of vigilant legislators but also in an informed and proactive public. The CIF debate has illuminated the path forward— one where confidentiality in opaque budgetary allocations does not overshadow the paramount importance of transparency and accountability. As the nation moves forward, it is this delicate balance that will define its fiscal and democratic resilience.
**Carlos Isagani Zarate, a budget policy reform advocate, was a former Deputy Minority Leader and three-term member of the House of Representatives representing Bayan Muna Partylist. He now works as the Climate Litigation Adviser of the Manila Observatory-Klima Center and Senior Partner of the La Vina Zarateand Associates (LVZ Law).
