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June 12, 2008
COA challenged to immediately audit PGMA’s P2 billion power subsidy
Former National Treasurer and Commission on Audit (COA) Secretary to the Commission Leonor Briones, called on the COA to immediately conduct a special pre-audit on President Gloria Macapagal Arroyo’s P2 billion power subsidy program. Under this program, the Government already began distributing P500 to Meralco lifeline users to help them pay for their electric bill. Briones, who is the lead convenor of Social Watch Philippines, which pioneered civil society engagement in the national budget process through the Alternative Budget Initiative, questioned the legal basis of PGMA’s cash transfer program. “The Constitution states that the government cannot use public funds for purposes not stated in the General Appropriations Act (GAA). There are no items in the GAA which states that P500 will be distributed to help individuals pay for Meralco bills,” Briones stressed. “The Commission on Audit, together with the Senate and House of Representatives, should demand an explanation on the sources of funds for the P500 power subsidy,” Briones said. She elaborated that funds from Value Added Tax, Windfall Tax and privatization of government properties are public funds which should go to the General Fund and undergo the appropriations process before they can be used. Under the law, the Commission on Audit, which is an independent government institution, can perform special pre-audit of government expenses when there are irregular circumstances in national expenditures. The auditing process starts with the legal and financial basis of expenses and proceeds with inspections on whether the objectives of the expenditures are met. Meanwhile, member organizations of SocialWatch Philippines expressed disappointment over PGMA’s cash transfer program, saying it is only a one-shot strategy that ensures political, and not socioeconomic, gains. According to Rene Raya, SWP lead convenor, said that experiences in Latin American countries where cash transfer was intensively employed as a development strategy proved that it only helped government achieve political objectives. “The Latin American experience proved that the real solution is not cash transfer; it is improving the economy and providing social services,” Raya said. “If the government is really sincere in providing better quality of life for Filipinos, it should consider decreasing Value Added Tax and providing quality jobs,” he added.
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