Sison says he won’t fly to Manila in August; Duterte asks, ‘So what do you want?’
By Arjay L. Balinbin, Reporter
“So what do you want?”
This was the question asked on Wednesday by President Rodrigo R. Duterte to exiled communist leader Jose Maria C. Sison after the latter postponed his plan to return to the Philippines for the resumption of peace talks between the communist rebels and the government.
“I said, I would talk to the enemies of the state. Oh, ayan nakikiusap ako kay (I am pleading with Mr.) Sison. He blows hot and cold. He wants to come home, but he does not want to come home,” the President said in his speech in Iloilo City on Wednesday evening, June 20.
He added: “So what do you want? You want to overthrow my government and the existing establishment? Eh, you come here and talk, tayo mag-usap (let’s tak). I will pay for your plane fare; I will billet you in a hotel… I’m giving both of us 60 days, a very small window for us to talk.”
ABS-CBN News reported on Tuesday, June 19, that Mr. Sison was scheduled to return to the Philippines “in August.”
But in a social media post, Mr. Sison said: “I will not return to the Philippines earlier than the completion and signing of the Comprehensive Agreement on Social and Economic Reforms by the negotiating panels in a foreign neutral venue. That cannot be in August anymore because Duterte has upset the work schedule of the panels by canceling the resumption of formal talks in Oslo from June 28 to 30.”
If the President continues to prevent the peace negotiations, Mr. Sison said he can also postpone his return “until the Filipino people succeed in ousting the tyrant Duterte from power.”
Duterte: Choices for next Ombudsman are ‘unshakable men’
By Arjay L. Balinbin, Reporter
President Rodrigo R. Duterte said on Wednesday, June 20, that he is currently reviewing the shortlist of aspirants for the next Ombudsman whom he described as “men” who are “unshakable.”
Last month, Mr. Duterte said he will not choose politicians, especially “a woman,” to succeed Ombudsman Conchita Carpio-Morales who is set to retire next month.
“I have a shortlist. Men [who are] ano talaga — unshakable. Pero (But) I have to talk to a lot of people. May (There are) judges and lawyers and the entire gamut of the crowd sa gobyerno (in government). I hope everything will — na ma-correct natin ‘to (so that we can correct this),” the President said in his speech at the 2nd Quarterly National Executive Officers and National Board Meeting and Continuing Local Legislative Program held in Iloilo City on Wednesday evening, June 20.
The President also took a swipe at Ombudsman Morales. “Si [Ms.] Morales… One day, I will show it to you the DAP (Disbursement Acceleration Program) na hindi niya ginalaw (that she did not touch). We’ll publish it,” he said.
But on the same day, the Office of the Ombudsman announced that Ms. Morales has indicted former president Benigno S. C. Aquino III in connection with the controversial DAP during his term.
“[Ms.] Morales found probably cause to indict former president Benigno Simeon Aquino III for Usurpation of Legislative Powers under Article 239 of the Revised Penal Code (RPC) over the controversial Disbursement Acceleration Program (DAP),” the Public Information and Media Relations Bureau of the Office of the Ombudsman said in a statement.
The Ombudsman has also indicted former budget secretary Florencio B. Abad “for the same offense and his administrative liability.”
Banks see strong demand for PHL ‘samurai’ bonds
TOP JAPANESE banks have expressed their interest in participating in the Philippines’ return to the yen debt market following a meeting with the Finance department in Tokyo.
In a statement, the Department of Finance (DoF) said that Finance Secretary Carlos G. Dominguez III met with officials of Daiwa Securities Group Inc., Mitsubishi UFJ Financial Group (MUFG), Nomura Holdings, Inc., Mizuho Financial Group, and Sumitomo Mitsui Banking Corp. (SMBC), and all have expressed interest in the upcoming bond issuance.
“We can expect strong demand. And of course, now the investors are looking for places to invest. Now for samurai bonds, there will be strong demand,” Daiwa President and Chief Executive Officer (CEO) Seiji Nakata was quoted by the DoF as saying.
“We are right behind you, so no need to worry,” he added.
MUFG Deputy Chairman Saburo Araki was quoted as saying: “We are extremely supportive of the bond issue… We are very excited and pleased for the inauguration or possible issuance.”
He added that Japanese investors have “strong confidence in the Philippines now and into the future,” citing the “good relationship” between both country’s leaders.
The government hopes to offer about $1 billion worth of yen-denominated securities by September or October.
It has started to secure necessary approvals from regulators here and in Japan, and has already conducted an economic briefing on Tuesday led by the country’s economic managers, the central bank governor, and other Cabinet officials.
According to the DoF, the upcoming samurai bond float will be the ninth offered by the Philippines, but will be the first without any guarantee from a Japanese institution.
The previous sale of yen-denominated notes was in 2010 where the government raised 100 billion yen in 10-year paper via private placement at a 2.32% coupon. The Japan Bank for International Cooperation guaranteed 95% of the issuance through its Market Access Support Facility — which was established to assist Asia’s developing countries in accessing international capital markets following the global financial crisis of 2008.
No guarantee fees mean lower financing costs for the government, the DoF said.
The DoF added that MUFG also indicated its interest in participating in the government’s infrastructure program with Mr. Araki saying: “infrastructure development is a key for the future success of the Philippines.”
Mr. Dominguez, meanwhile, responded by touting the government’s stronger tax collections due to the tax reform.
“We are now confident that our infrastructure program has enough capital for it. We are not going to be relying solely on debt to finance it,” he said.
The DoF added that Nomura Holdings President and CEO Koji Nagai told Mr. Dominguez that the bank seeks to “capture the most favorable conditions” for the Philippines’ upcoming offer.
“Not only the government, but also the private sector wants to invest in your country… By collaborating, the government and private sector can do a lot,” he said.
Meanwhile, the DoF said that Tatsufumi Sakai, president and group CEO of Mizuho Financial Group “cited the Philippines’ recent investment-level rating upgrades, its strong economy and young skilled work force as plus factors for the “samurai” bond issuance and the continued interest of Japanese investors in the country.”
SMBC President and Group CEO Takeshi Kunibe said that the “strong leadership” in the Philippines and the “expansion of the Philippine economy” has made the country “very popular among Japanese investors.”
He added that the bank is also looking forward to “a successful deal” when the Philippines issues yen debt.
Mr. Dominguez said that he hopes the Philippines obtains favorable rates on the samurai bond issue, similar to its previous offshore deals.
He recalled that the $2 billion worth of 10-year dollar-denominated bonds in January was only 37.8 basis points (bps) above the equivalent US Treasuries, while the 1.46-billion renminbi “panda” bonds had an even tighter spread of 35 bps over the benchmark.
Sought for comment, a trader said in a phone interview that the samurai bond offer has a good chance of oversubscription given its relatively small volume.
“There is demand on the Japanese side. The chances of the offer being oversubscribed are high, and rates are low in Japan,” he said.
“The Philippines has good economic fundamentals and is above investment-grade. So Japanese investors will look at that,” he added.
The government raised the share of its foreign borrowing portfolio to 35% from 26% initially planned and 20% last year, in a bid to tap favorable interest rates overseas and diversify its financing base.
From 2019 to 2022, however, the share of loans borrowed externally will fall to 25%.
The government plans to borrow a total of P888.23 billion this year. — Elijah Joseph C. Tubayan
Duterte hopes to reform AFP pensions by 2022
PRESIDENT Rodrigo R. Duterte wants to fast-track the establishment of a new pension scheme for military personnel and have it set up before he steps down from office.
Finance Secretary Carlos G. Dominguez III said that economic managers, together with officials of the Defense, Interior and Local Government, and Transportation departments met with Mr. Duterte last week to present the blueprint for the new pension fund for the military.
“We laid out to them the problem and the way to solve the problem. But we have to sit down together to work out the mechanism for solving this problem — which will involve turning over some of the real estate assets of the organizations to be able to set up a fund for the retirement which we are recommending be managed by the GSIS (Government Service Insurance System) separately from the current (pension fund),” Mr. Dominguez told reporters.
“The President asked us to move forward quickly and we have to make another presentation to him on the progress by the end of August,” he said.
The new fund as drawn up will continue the full benefits granted to current pensioners, while those currently in the service will be eventually required to pay monthly contributions to the pension fund, similar to the system for civilians, while new service members will be placed under a new pension regime.
“We hope not to leave the next administration with this problem because the last admin[istration] left us with this problem with no plan. At least we have a plan,” Mr. Dominguez said.
Budget Secretary Benjamin E. Diokno has said that the problem began during the Ramos administration, but no one since then has addressed it. He called the imbalance between the benefits due and the pension’s resources the “elephant in the room.”
Currently, military retirees’ monthly benefits are funded solely by government budget allocations, which take up two-thirds of the Department of National Defense’s budget, a share which is expected to grow further.
The monthly payouts to pensioners are indexed to the salaries of those in active service, which means that benefits will grow alongside increases in military salaries.
“It’s not sustainable over the long run. It’s already taking a toll because you cannot get it out of your budget. So far it’s affordable but pretty soon it won’t be affordable. So we are just anticipating a large problem,” he said.
The economic managers earlier targeted a new pension fund set up by 2019, which they said would cost P7 to P9 trillion. — Elijah Joseph C. Tubayan
Suggested retail price scheme for rice, other goods in the works
THE Department of Agriculture (DA) said it is expecting to impose a suggested retail price (SRP) scheme for basic agricultural commodities including rice and livestock products.
Agriculture Secretary Emmanuel F. Piñol told reporters on Wednesday that the DA will meet with stakeholders to finalize the price matrix for the SRPs.
“I will have to meet with the stakeholders maybe on Friday,” he said, adding that he hopes to release an SRP table soon after.
Mr. Piñol noted that the DA will be focusing on selected commodities, especially for livestock products where prices are volatile.
The DA and the Department of Trade and Industry (DTI) aired plans to impose SRPs on rice in April amid increasing prices due to the depletion of the low-cost rice inventory held by the National Food Authority.
Undersecretary for Operations Ariel T. Cayanan said that the DA is also hoping to tame volatility in some commodities which cannot be placed under an SRP regime, where alleged profiteering takes place at the level of processing.
“The processor can just slap on an increase in the price but the producers can’t hide it. But (producers) are the true stakeholders here.” — Anna Gabriela A. Mogato
Gov’t may need to finance natural gas infrastructure
THE GOVERNMENT may end up funding some components of the natural gas infrastructure as the required capital may be too large for a private company to undertake, an Energy official said.
“We believe that some portions of the infrastructure required to develop a downstream natural gas industry might have to be shouldered by the national government because the private sector might not be willing to undertake that investment,” said Leonido J. Pulido III, assistant secretary at the Department of Energy (DoE).
Mr. Pulido was referring to the transmission, distribution and supply of natural gas to power plant consumers — or what is called the downstream industry. He was reacting to proposed legislation at the Senate that seeks to develop that segment.
Introduced by Senator Francis G. Escudero, Senate Bill 765 calls for the development of the downstream natural gas industry, consolidating for the purpose all laws relating to the transmission, distribution and supply of the fossil fuel.
“What the Senate bill lacks would be to provide for some sort of funding mechanism for very critical, very large-scale projects such as pipelines that our third-party investors might not be willing to undertake,” Mr. Pulido said.
He also said that based on the DoE’s initial review of the proposed legislation, the department is recommending the inclusion of the development of the midstream industry or the importation of liquefied natural gas (LNG) in the bill.
He said the inclusion would provide an opportunity for the integration of the DoE’s department circular on the downstream natural gas industry, which was issued last year.
Mr. Pulido also proposed the provision of incentives not only to encourage investors to enter into the midstream portion of the natural gas value chain but also to sway existing petroleum-fueled facilities to convert to natural gas-fired power plants.
“We also would like to take that as an opportunity to put provisions that will address the growth of other sectors. Currently, the way it’s written, [the bill] focuses on power generation, and of course, the DoE wants to push for the use of natural gas in other sectors — transportation, industrial and so on,” he said.
In June 2017, Energy Secretary Alfonso G. Cusi said his department was looking at the construction of a common LNG receiving and distribution infrastructure, which he said could make the country an “LNG hub” for Southeast Asia.
He said the facility would cost around P100 billion for completion by 2020. The timeline should give the country enough lead time and safeguard it ahead of the anticipated depletion of the Malampaya gas find starting in 2024.
He said the facility would have an initial 200-megawatt (MW) power plant, storage, and liqeufaction and regasification units. The plant’s output is aimed to served the country’s economic zones, he added.
Mr. Cusi is in Japan this week to encourage natural gas companies in Japan to invest in the Philippines’ LNG hub project.
To date, natural gas from the Malampaya gas field off the coast of Palawan fuels five gas-fired power plants in Batangas province with a combined capacity of 3,211 MW.
Natural gas, said to be the cleanest fossil fuel, is usually transported through a pipeline, but if the deposit is large and the market is overseas, the gas may be liquefied for ease of shipping and moved via specialized tankers. Imported LNG is then regasified or reverted to its former state in the country of destination. — Victor V. Saulon
Pepsi bottler fined P11.8-M over unauthorized wells
THE Department of Environment and Natural Resources (DENR) has imposed a P11.8 million fine on Pepsi Cola Products Philippines, Inc. (PCPPI) for operating deep well pumps AT its Muntinlupa plant without permits.
In an order dated Tuesday, the National Water Resources Board (NWRB), a DENR agency, said it raised the penalty from P11.58 million initially.
The deep wells were discovered after a DENR task force and the Philippine National Police raided PCPPI’s plant last week.
The raid led to a partial closure of the facility’s operations.
NWRB Litigation and Adjudication head Archie Edsel C. Asuncion in a statement on Wednesday said that the increase in the fine stems from a P1,000 per day charge associated with the deep wells’ operations, which ran from Jan. 10, 2013 to June 11.
Undersecretary for Solid Waste Management and Local Government Unit Concerns Benny D. Antiporda in the same statement said the six deep well pumps were sealed to prevent further depletion of the groundwater.
“The sealing was done after the raiding team disconnected the riser and submersible pumps of the deep wells from the power supply and computer box,” he added.
Sought for comment, PCPPI told BusinessWorld that it cannot disclose further details of its ongoing case with NWRB.
“We are still in discussion with the Board and working on finding a speedy resolution on this issue,” the company said. — Anna Gabriela A. Mogato
Manage software assets to manage cyber threats
Software licenses comprise a huge chunk of the annual IT costs of an organization. However, in most cases, they are also investments that are improperly managed and tracked. As a consequence, a majority of organizations fails to realize the optimum benefits from these software licenses. In fact, due to their intangible nature, software licenses are often neglected or utilized only for their basic purpose.
With the huge pressure on IT management to cut down costs and rationalize IT expenditures, there is a growing trend to institutionalize a process that aims to manage software licenses. This process, known as Software Asset Management (SAM), has been established as part of the broader scope of IT Asset Management (ITAM) to integrate the policies, processes, technology, and people for managing software assets.
Aside from the more obvious reason of minimizing legal and contractual risks that may arise from the use of unlicensed software, companies who have implemented SAM across their organization have reaped huge benefits particularly in the areas of cost control and IT security.
With an effective SAM in place, an organization gains better understanding and visibility of its software environment, thereby minimizing redundant license purchases. For example, it is in better position to identify excess entitlements, which enable it to reallocate resources more efficiently to address future requirements almost on a real-time basis.
Furthermore, companies can obtain valuable insights to work towards standardization and identify if their existing software portfolio aligns with their business needs and direction. Better budget predictability is also established while unplanned significant license purchases are minimized. Another subtle benefit of SAM is gaining more negotiating power with software vendors by taking advantage of volume discounts.
With respect to IT security, SAM supports the logic that you can’t protect what you do not know. Hence, organizations must make it an imperative to have visibility over the assets they want to secure. A 2013 study by a global software company noted that 63% of unlicensed or pirated software contains malware programs. The proliferation of pirated software in the Internet coupled with poor SAM practices (e.g. indiscriminate download and installation of software) expose organizations to various security risks.
SAM is a critical aspect of an organization’s security program particularly because software is a primary target of cyber criminals. Often, the intrusion goes unnoticed for a long period and it is very difficult to trace the infection back to its source. With the growing threats to IT security, various regulations have been issued to ensure that an effective SAM is in place to mitigate the risks. One good example would be Circular No. 833 issued by the Bangko Sentral ng Pilipinas (the central bank of the Philippines that functions as the country’s central monetary authority) which provides additional guidelines on software acquisition for BSP Supervised Financial Institutions (BSFIs). The specific regulation mandates BSFIs to establish formal guidelines and procedures on the installation, use, maintenance, and retirement of acquired software.
Implementation of SAM depends on the size and complexity of the IT software environment of the organization. It can vary from adopting manual spreadsheet monitoring to sophisticated tools capable of doing license management, inventory and discovery, and data center management. Other SAM tools can even expand the scope to include mobile device management (MDM).
However, SAM is not only about selecting the appropriate technology. More importantly, it involves defining and establishing the right policies, procedures, and organizational structure to support the organization’s SAM operating model. Organizations who have yet to adopt SAM or even those that have SAM process in place can benchmark their SAM program against industry standards such as ISO 19770-1, CMMI, etc. The primary objective is not to gain certification or become the best in class but to be able to establish and sustain an optimal SAM program relative to the company’s assessment of the associated risks and rewards.
While SAM is a relatively new practice in the Philippines, the rise of various cloud technologies has changed the entire SAM landscape, making it even more complex yet essential. There are even IT vendors that offer programs with focus on software discovery and inventory, and high-level SAM maturity assessment.
SAM, as part of ITAM, must integrate policies, processes, technologies and people to effectively manage software assets. Hence, management must take the initiative in fully operationalizing governance for SAM. Chief Technology Officers must include SAM in their annual list of priorities. Ideally, companies must also have IT personnel who are well-versed in software license rights and limitations, as this would allow them to maximize the benefits from their software assets.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.
Mark Aurelius V. Bantay is a manager with the Forensics Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.
+63 (2) 845-2728 local 3236
mark.aurelius.bantay@ph.pwc.com
Peso weakens anew vs US dollar
THE PESO slid against the dollar on Wednesday as investors remain wary about trade tensions overseas and amid the decision of the local central bank to raise its interest rates.
The local unit ended the session at P53.48 against the greenback, four centavos weaker than the P53.44-per-dollar finish on Tuesday.
The peso opened the session stronger at P53.33 versus the greenback. It rose to as high as P53.31, while its intraday low stood at its closing rate of P53.48.
Dollars traded declined to $650 million from the $733.7 million tallied the previous day.
Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, said the local unit slid against the dollar on the back of continued market concerns over the trade spat between the United States and China.
“The market is still wary about the US-China posturing on equal trade,” Mr. Asuncion said in a text message on Wednesday.
Meanwhile, a trader noted the peso closed “relatively flat” despite being “generally stronger” within the day ahead of the Bangko Sentral ng Pilipinas (BSP) rate decision.
The local monetary authority raised benchmark rates by 25 basis points effective June 21. BSP Governor Nestor A. Espenilla said the rate-setting Monetary Board decided to hike as inflation expectations “remain elevated” this year.
“We’re also seeing more volatility in the exchange rate, which potentially adds to the dynamics on inflation that we need to be careful about,” Mr. Espenilla said.
May inflation accelerated to a fresh five-year high of 4.6% from the 4.5% logged in April. However, this was lower than the 4.9% expected by the market.
“After the rate hike, however, the market reaction was muted on the offshore peso market mainly because the move was already expected,” another trader said.
Michael L. Ricafort, head of the Economics and Industry Research Division of Rizal Commercial Banking Corp., said the BSP’s decision to hike rates, along with the slight decline in the US government bond yields, “could somewhat be positive for the peso.”
For Thursday, the second trader expects the peso to move between P53.30 and P53.50 versus the dollar, while the first trader and Mr. Asuncion gave a slightly wider forecast range of P53.20-P53.50. — K.A.N. Vidal
Shares near bear territory on overseas tensions
LOCAL EQUITIES tumbled on Wednesday, moving closer to bear territory amid rising tensions between the United States and China.
The benchmark Philippine Stock Exchange index (PSEi)extended its losing streak to a fifth day, dropping 0.69% or 50.99 points to 7,261.62 Wednesday, June 20. This is the lowest close since March 27, 2017, when the market finished at 7,245.97.
The broader all-shares index lost 0.48% or 21.49 points to 4,460.22.
“After peaking at 9,078 in January this year, the PSEi closed in the bear territory today after the trade tension between the US and China worsened this week. Investors have turned risk-averse towards the equities market since the trade rift between the two largest economies won’t do anything good for the global growth,” Timson Securities, Inc. trader Jervin S. de Celis said in a mobile message on Wednesday.
The PSEi will officially enter bear market territory should it close at 7,246.896, or a 20% drop from its record high of 9,058.62 recorded last Jan. 29.
Foreign funds continued to exit the market, with net foreign outflows reaching P772.56 million, slightly lower than Tuesday’s P867.92-million net sales.
Regina Capital Development Corp. Managing Director Luis A. Limlingan said local and regional developments kept the market on the sidelines, “with minimal value turnover and very few investors wanting to take a risk.”
Investors were also being cautious ahead of the Bangko Sentral ng Pilipinas’ meeting. The local central bank raised rates anew Wednesday, June 20, following a similar move in May in a bid to arrest future inflation and keep local yields competitive.
The Monetary Board raised policy settings by another 25 basis points (bp) during their fourth review for the year, the BSP announced after the market’s close. Rates now stand at 4% for the overnight lending rate, 3.5% for the overnight reverse repurchase rate, and 3% for the overnight deposit rate.
“I also think that investors would choose safer havens like bonds now that we are in an environment where most central banks are raising rates,” Mr. De Celis said.
The mining and oil sector was the lone sub-index that managed to eke out gains, rising 0.24% or 23.71 points to 9,706.84.
Holding firms led the decline, dumping 0.99% or 72.09 points to 7,179.16, followed by services which slipped 0.55% or 8.07 points to 1,436.35. Industrials shed 0.42% or 44.52 points to 10,509.51; financials went down 0.42% or 7.63 points to 1,808.40; while property dipped 0.29% or 10.64 points to 3,547.60.
Some 1.7 billion issues switched hands for a P5.33-billion turnover, slowing from the previous session’s P6.89 billion. Decliners trumped advancers, 103 to 92, while 45 issues closed flat.
Timson Securities’ Mr. De Celis said it is still unclear when the sell-off will end, given the continued exit of foreign investors from emerging markets. — Arra B. Francia
Aquino, Abad charged over DAP controversy
THE OFFICE of the Ombudsman has indicted former president Benigno S. C. Aquino III and former budget secretary Florencio B. Abad in connection with the controversial Disbursement Acceleration Program (DAP) midway into Mr. Aquino’s administration.
Ombudsman Conchita Carpio-Morales approved on June 14 the resolution, dated May 22, after finding probable cause for Usurpation of Legislative Powers.
In the resolution, the Special Panel partially granted a motion for reconsideration (MR) filed by Carlos Isagani T. Zarate, Renato Reyes, Benjamin Valbuena, Dante LA Jimenez, Mae Paner, Antonio Flores, Gloria Arellano and Bonifacio Carmona, Jr.
The Special Panel also denied Mr. Abad’s MR to reverse the Ombudsman’s decision on his criminal and administrative liabilities.
“(A) re-evaluation of the case establishes that the individual actions of respondent Aquino and respondent-movant Abad showed a joint purpose and design to encroach on the powers of Congress by expanding the meaning of savings to fund programs, activities and projects under the DAP,” the resolution said, as quoted in a statement by the Ombudsman.
The DAP, implemented through the National Budget Circular (NBC) 541, authorized the withdrawal of P72 billion in “unobligated allotments of agencies with low levels of obligations as of 30 June 2012.”
Certain provisions of the program had been flagged by the Supreme Court as unconstitutional, prompting Mr. Aquino to vent publicly on the ruling while his congressional allies threatened then Chief Justice Maria Lourdes P.A. Sereno with impeachment.
“It will be recalled that in 2014, the Supreme Court declared unconstitutional the following acts committed in pursuance of the DAP: (1) withdrawal of unobligated allotments from the implementing agencies; and the declaration of the withdrawn unobligated allotments and unreleased appropriations as savings prior to the end of the fiscal year without complying with the statutory definition of savings contained in the General Appropriations Act; and (2) the cross-border transfers of the savings of the Executive to augment the appropriations of other offices outside the Executive Branch,” the Ombudsman’s statement said.
“Abad’s act of issuing NBC (National Budget Circular) 541 cannot be viewed in a vacuum. The evidence on record shows that an exchange of memoranda between (Aquino) and (Abad)] precipitated its issuance. Verily, without the approval of the said memoranda by respondent Aquino, NBC 541 would not have been issued,” the statement also said, citing the resolution.
The Ombudsman also cited “marginal notes” by Mr. Aquino on a memorandum dated June 25, 2012, which “specified his unqualified approval… to consolidate fiscal year 2012 savings/unutilized balances and its realignment…and… to withdraw unobligated balances of national government agencies for slow-moving projects/expenditures as of 30 June 2012 and its realignment.”
“Such marginal notes show meaningful discussion between respondents and not mere reliance of a superior on a subordinate,” the resolution noted further.
“It is thus clear that respondent-movant Abad sought the approval of respondent Aquino on both the request for authority to pool savings to fund the DAP and the request for omnibus authority to pool savings/unutilized balances. In both instances, respondent Aquino knowingly gave his approval. His approval prompted the issuance of NBC 541 which directed the withdrawal of unobligated allotments and unreleased appropriations and their declaration as savings, which is contrary to law,” the resolution cited by the Ombudsman’s statement also said.
The Ombudsman further noted that, “Under Article 239 of the RPC, the penalties of prision correccional in its minimum period and temporary special disqualification shall be imposed upon an executive or judicial officer who shall encroach upon the powers of the legislative branch of the Government, either by making general rules or regulations beyond the scope of authority, or by attempting to repeal a law or suspending the execution thereof.” — Charmaine A. Tadalan