THE Department of Budget and Management (DBM) dismissed as “speculation” allegations by Camarines Sur Rep. Rolando G. Andaya, Jr. that it “restored the kickback system” by allocating P100 billion to the Department of Public Works and Highways (DPWH), adding that correct procedures were followed for releasing notices of funding authority.
In a statement issued Tuesday, the Budget department called the allegations “mere speculation” and “beyond the mandate of the DBM.”
“We reiterate that the DBM only releases spending authority and notices of cash allocation (NCA). Implementing agencies are the ones who engage contractors, through open and competitive bidding, for delivery and payment of goods/services,” the DBM said in its statement.
The Budget department issued the statement after Mr. Andaya, who is also the chairman of the House committee on appropriations, said Friday that unpaid contracts for infrastructure projects in 2018 rose to P100 billion from just P44 billion in November.
He alleged that the magnitude of the unpaid contracts signal the return of so-called “kickbacks,” by which contractors in corrupt deals illegally share the proceeds of government funding with officials.
“[T]he DBM has already released funds to cover its full-year cash requirements, including payments for due and demandable obligations in fiscal year 2018. This is reflected in the actual disbursement releases of the DPWH in 2018 amounting to P560.4 billion,” the DBM said.
It added that the original disbursement program of the DPWH was only P516 billion, before it submitted a request for an additional P44.4 billion in September.
The Budget department said it released DPWH’s funds in full.
It also reminded departments to “broaden the monitoring” of the implementation and payment for the services from their contractors.
“The DBM issued Circular Letter No. 14 series of 2017 on Cash Planning Reports to remind all departments, especially the top 10 spending agencies, to be more prudent in the planning of their monthly disbursement programs ahead of time.”
Responding to the allegations that the agency adjusted the budget of the Public Works department without their knowledge, the DBM said the approved budget of P555.7 billion was acknowledged by DPWH Undersecretary Maria Catalina Cabral during a hearing of the House committee of appropriations.
“The DPWH budget of P555.7 billion was then presented to the Cabinet and approved by President Rodrigo R. Duterte in the Cabinet meeting held on July 9, 2018,” the Budget department added. — Karl Angelo N. Vidal
