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Plaintiffs challenge P150.9-billion unprogrammed funds at high court

PRESIDENT Ferdinand R. Marcos, Jr. signed the General Appropriations Act for Fiscal Year 2026 during a ceremony at Malacañan Palace on Jan. 5. — NOEL B. PABALATE/PPA POOL

By Erika Mae P. Sinaking

HOUSE MINORITY lawmakers on Thursday asked the Supreme Court (SC) to nullify the P150.9-billion unprogrammed appropriations in the 2026 national budget over constitutionality questions, arguing its inclusion amounted to a grave abuse of discretion.

The petition for certiorari and prohibition was filed by Caloocan Rep. Edgar R. Erice and Party-list Rep. Leila M. de Lima, seeking to nullify the unprogrammed funds under the 2026 General Appropriations Act (GAA), which President Ferdinand R. Marcos, Jr. signed into law on Jan. 5.

“There is already a ripe and actual justiciable controversy because the budget has been approved and signed into law. It can always be implemented anytime by the Executive,” Ms. de Lima told reporters in mixed English and Filipino.

“That’s why we filed a petition for certiorari and prohibition. Certiorari because there’s a grave abuse of discretion and prohibition to stop the Executive, particularly the Executive secretary and the Budget secretary, from implementing the unprogrammed funds.”

The lawmakers asked the SC to issue a temporary restraining order to stop the implementation of the questioned appropriations, which they claimed to be unconstitutional.

Unprogrammed appropriations were “standby” funds that may only be released if specific fiscal conditions are met.

The Department of Budget and Management (DBM) has said these funds are intended to support priority programs and projects that cannot yet be fully programmed due to uncertainties in revenue inflows.

These typically include budgetary support for social protection programs, infrastructure projects, debt management, and other government obligations that may require supplemental funding should additional resources become available during the fiscal year.

However, the petitioners argued that the continued inclusion of such funds gives the Executive excessive flexibility in spending, undermining Congress’ constitutional “power of the purse.”

During the filing, Ms. De Lima said the structure of unprogrammed appropriations weakens legislative oversight because Congress is asked to authorize spending without full details on the projects and financing sources.

“Instead of clearly laying out the budget expenditures and the sources of financing, the process is reversed,” Ms. De Lima said. “There is a general program, but there are no specific projects and no definite sources of financing yet.”

“Congress is supposed to authorize spending, but how can it do so if it does not see the specific items under the unprogrammed appropriations? This undermines the entire budget process,” Ms. De Lima said.

She added that if certain expenditures are truly necessary, they should already be included in the programmed appropriations.

“Unprogrammed appropriations are inherently questionable. If these projects are really needed, they should be placed under the programmed appropriations where the projects are clearly identified,” she said. “If excess revenues later materialize, there should be a special appropriations measure so Congress can scrutinize them again, instead of leaving them to executive discretion.”

Mr. Erice, for his part, warned that the financing sources for unprogrammed funds pose significant fiscal risks.

“The most dangerous part is the source of financing. Once these are placed under unprogrammed funds, the government can find ways to source funding — from where?”

He said that the funds could be sourced from asset sales, excessive borrowing that the government may no longer be able to repay, or the imposition of additional taxes.

“These do not pass through Congress because they are already programmed. That is completely wrong,” Mr. Erice added.

In a statement, the DBM maintained that the unprogrammed appropriations under the 2026 GAA are constitutional and consistent with existing jurisprudence.

The agency said the Supreme Court has repeatedly upheld unprogrammed funds as valid “standby appropriations” that are not automatically available for use and may only be released upon the occurrence of clearly defined fiscal conditions, subject to strict validation and control mechanisms.

“It is not a lump-sum fund nor a blank check for spending,” the DBM said.

The DBM also noted that the P150.9-billion unprogrammed appropriations for 2026 represent the lowest level since 2019, reflecting what it described as stronger fiscal discipline and tighter safeguards in budget execution.

“The DBM remains committed to upholding the Constitution, respecting the authority of the courts, and ensuring that the national budget is implemented in a prudent, transparent, and accountable manner,” it said.

The agency added that upon receipt of the petition, it would transmit the case to the Office of the Solicitor General, the government’s statutory counsel.

Year-long state of calamity raises need for greater gov’t spending oversight

DEBRIS from damage caused by Typhoon Kalmaegi, locally called Tino, covers the ground in Talisay, Cebu. — REUTERS/ELOISA LOPEZ

By Kenneth Christiane L. Basilio, Reporter

A LAWMAKER urged tighter scrutiny of government spending amid the year-long state of national calamity, pushing for greater congressional oversight on disbursements on agencies prone to corruption.

Having tighter supervision and greater public participation in bidding processes would help ensure contracts are awarded properly to curb wasteful spending and fund malversation, Party-list Rep. Terry L. Ridon, who heads the House Public Accounts Committee, said on Wednesday.

President Ferdinand R. Marcos, Jr. placed the Philippines under a year-long state of national calamity after two successive typhoons in November left hundreds dead and caused billions in damage. This declaration allows authorities to bypass regular bidding and directly negotiate with suppliers.

“We need to be vigilant about it,” he told BusinessWorld in an interview. “That’s really our safeguard against agencies and officers who will try to take shortcuts and engage in corrupt practices.”

His statement comes as lawmakers ahead of a joint oversight committee Congress will convene to scrutinize public disbursements amid a widening multibillion peso corruption scandal that has implicated officials, politicians and private contractors.

“All agencies are susceptible to corruption,” said Mr. Ridon. “But of course, there are certain agencies that are notorious for this — basically infrastructure agencies with kickbacks, substandard projects, and ghost budgets.”

“That’s why they really need to be closely monitored,” he added.

He had said the House Public Accounts panel would examine bidding and project implementation in the Public Works, Health and Education departments to crack down on corruption, noting that infrastructure projects have traditionally been prone to kickbacks.

“It is important that the materials reflect the market prices,” Mr. Ridon said. “Also a big part of it lies in the actual implementation, which is why the committee is exercising its oversight functions to ensure it is carried out properly.”

He said that oversight would include going to the offices of the agencies under monitoring.

“This means looking at how meetings are conducted in the Public Works department at the district level, what those meetings look like at the central office, and how bidding is really carried out there,” he said.

Ederson DT. Tapia, a political science professor at the University of Makati, said opening state spending to public monitoring is a vital step toward improving accountability.

“Opening state spending to public monitoring sends a clear signal that accountability should not be confined to closed rooms or technical committees,” he said, but warned that the system should be “user-friendly” for the transparency thrust to be effective.

“Public access should not mean simply placing large volumes of raw data online. If information is difficult to locate, poorly organized, or highly technical, participation becomes superficial and limited to a few specialists,” said Mr. Tapia. “Public monitoring can strengthen accountability, but only if it is designed with the public in mind and not merely to satisfy disclosure requirements.”

Granting the public greater access to monitoring state spending could strengthen efforts to prevent corruption, Joy G. Aceron, convenor-director of transparency group G-Watch, said.

“It can be a deterrent, and it adds to the dynamism of governance with more diverse actors involved checking and balancing each other,” she said in a Facebook Messenger chat. “There are many ways the public can monitor governance, and one that has been proven effective in several studies is through multi-level civil society monitoring and advocacy.”

She said there needs to be a “shared leadership and balanced collaboration between government and civil society,” including state efforts to strengthen nongovernment organizations to bolster checks and balances.

MWSS says P1.93-B aqueduct may be completed next year

PHILSTAR FILE PHOTO

By Sheldeen Joy Talavera, Reporter

A P1.93-BILLION aqueduct that will provide additional raw water transmission capacity and ensure continuous flow of raw water to Metro Manila and nearby provinces is targeted for completion next year.

In an interview with BusinessWorld, Patrick James B. Dizon, department manager at the Metropolitan Waterworks and Sewerage System (MWSS) Corporate Office, said the construction is ongoing for the replacement aqueduct.

An aqueduct is a structure built to transport water over long distances from a water source to where it is needed.

The Aqueduct Number 7 Project stretches a total of 15 kilometers from Bigte Basin in Norzagaray, Bulacan to Novaliches Portal in Lamesa Dam, Quezon City. The water infrastructure is designed to carry up to 1,857 million liters per day (MLD) of water.

The new aqueduct replaces the aging Aqueducts 1 and 2, which was constructed in 1939 and 1948, respectively, and can only deliver 300 MLD.

Mr. Dizon said that the project is funded by MWSS’ concessionaires Maynilad Water Services, Inc. and Manila Water Co., Inc. — and is jointly implemented by all three parties.

The new aqueduct will be connected to the Angat Water Transmission Improvement Project Tunnel No. 5. The tunnel spans from Ipo Dam to Bigte Basin and carries a raw water supply of 1,642 MLD.

The P3.25-billion tunnel, which was completed in November last year, aims to upgrade the Umiray-Angat-Ipo-La Mesa water conveyance system that was built in the 1930s and 1960s.

Tunnel No. 5 is an addition to the Tunnel No. 4 which was constructed in 2020, providing redundancy so older tunnels and aqueducts can undergo maintenance or rehabilitation without interruption of water supply.

Patrick Lester N. Ty, chief regulator at the MWSS Regulatory Office, said that the completion of the two tunnels paves the way for the possible rehabilitation of aging tunnels.

“With the operation of tunnels 4 and 5, MWSS can now initiate the detailed investigation and assessment of Tunnels 1-3 whether for rehabilitation or decommissioning,” he said.

BIR files P48.39-M tax raps against contractor in Bulacan ‘ghost’ project

PRESIDENT Ferdinand R. Marcos, Jr. inspected an unfinished P55-million flood control project in Baliwag City, Bulacan province that government records had listed as completed. — PPA POOL/NOEL PABALATE

THE Bureau of Internal Revenue (BIR) has filed a criminal complaint with the Department of Justice against a major flood control contractor for allegedly evading P48.39 million in taxes from a government-funded project.

BIR Commissioner Charlito Martin R. Mendoza said on Thursday that the respondent, owner of Wawao Builders Corp., allegedly violated the tax code by filing inaccurate income tax and value-added tax returns for the first two quarters of 2024. The contractor reportedly claimed deductions for a nonexistent riverbank protection project in Malolos City, Bulacan.

“He received the money, but no flood control project was actually carried out. It’s a ghost project. Yet when he filed his tax returns, he declared costs for the supposed construction,” Mr. Mendoza told reporters.

Wawao Builders is among the top 15 contractors identified by President Ferdinand R. Marcos, Jr. as having secured a large share of flood control projects over the past three years.

The company has also been permanently blacklisted by the Department of Public Works and Highways.

Records show that Wawao Builders received funding in three tranches totaling P72.37 million from March to April 2025 for the P77.20-million project, which was awarded in January 2024. Despite reports claiming the project was fully completed, audits by the BIR and the Commission on Audit found no evidence of actual construction, the agency said.

This latest filing brings the BIR’s total to 13 criminal complaints involving irregular flood control contracts. To date, the agency is investigating approximately P8.92 billion in potential tax liabilities linked to these anomalous projects. — Erika Mae P. Sinaking

Marcos to visit UAE on Jan. 12

PRESIDENT Ferdinand R. Marcos, Jr., accompanied by First Lady Liza Araneta-Marcos, left from Villamor Air Base in Pasay City on Aug. 4, 2025 for a state visit to India. — PHILIPPINE STAR/ RYAN BALDEMOR

PHILIPPINE President Ferdinand R. Marcos, Jr. will travel to the United Arab Emirates (UAE) on Jan. 12 for a working visit centered on sustainability talks and signing of key bilateral agreements, Malacañang said on Thursday.

Mr. Marcos is set to attend the Abu Dhabi Sustainability Week at the invitation of UAE President Sheikh Mohamed bin Zayed Al Nahyan, joining other heads of state and government to discuss global challenges on energy, water, finance, food security, and the environment.

Palace Press Officer Clarissa A. Castro said the visit will only be for a day.

On the sidelines of the forum, the Philippine President is expected to witness the signing of two major agreements between Manila and Abu Dhabi: a Comprehensive Economic Partnership Agreement (CEPA) and a memorandum of understanding on defense cooperation.

The CEPA will be the Philippines’ first free trade agreement with a Middle Eastern country, aimed at expanding market access for Philippine goods and services in the region.

The defense cooperation memorandum, meanwhile, is intended to provide a framework for collaboration with the UAE in developing defense capabilities and technologies.

“President Marcos, Jr. firmly believes that his upcoming visit to Abu Dhabi will be meaningful and beneficial for the Filipino people,” Ms. Castro told a Palace briefing in Filipino. Mr. Marcos was last in the UAE in November 2024.

The Philippines and the UAE formally established diplomatic ties on Aug. 19, 1974.

The UAE is the Philippines’ top trading partner within the Gulf Cooperation Council. In 2022, bilateral non-oil trade hit $1.85 billion, ranking the UAE as Manila’s 17th largest trading partner globally, according to the UAE Foreign ministry.

UAE officials said their investments in the Philippines are projected to double following two key agreements: the Investment Promotion and Protection Agreement, which took effect in February 2024, and the forthcoming CEPA.

Meanwhile, Executive Secretary Ralph G. Recto said Mr. Marcos won’t attend the World Economic Forum on Jan. 19-23 in Davos, Switzerland as he focuses on “lots of work domestically.”

The country will be represented by the Philippine Ambassador to Switzerland Bernard Faustino M. Dy and Philippine Ambassador to the World Trade Organization in Geneva Manuel Antonio J. Teehankee. — Chloe Mari A. Hufana

PHL finalizing non-ASEAN list

PRESIDENT Ferdinand R. Marcos, Jr. leading the official launch of the Philippines’ Chairship of the Association of Southeast Asian Nations (ASEAN) 2026 at Foro de Intramuros, Manila, Nov. 14. — PHILIPPINE STAR/NOEL B. PABALATE

THE Philippines is still finalizing the list of foreign leaders outside the Association of Southeast Asian Nations (ASEAN) who are expected to attend the Manila summit this year, the government’s National Organizing Council (NOC) said on Thursday.

“As practice in ASEAN, the second summit we do receive leaders from non-ASEAN countries. So we’re talking about Japan, Korea, China, Australia, New Zealand, the US, India,” ASEAN Spokesperson Dominic Xavier M. Imperial told a press briefing.

“But as for the confirmation of who exactly, I think it’s too early to say,” he added.

The Philippines is set to hold more than 200 clustered meetings this year, as the country host the regional bloc’s annual summit, according to the NOC.

The meetings are expected to bring in foreign leaders and dignitaries from regional neighbors and non-ASEAN dialogue countries to discuss potential security, trade, and economic concerns.

“We’re working on bringing these leaders, especially the dialogue partners, for the second summit. I think along the way we will be able to get more confirmation,” Mr. Imperial said.

The 48th ASEAN Summit and Related Summits will be held in Mactan, Cebu in May, while the 49th ASEAN Summit and Related Summits will be held in Manila by November. 

The heads of state of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste, and Vietnam are expected to attend ASEAN Summits.

ASEAN Related Summits, on the other hand, are also attended by the bloc’s dialogue partners including leaders from the United States, China, the European Union, the United Kingdom, Australia, Canada, India, Japan, New Zealand, South Korea, and Russia.

Major General Potenciano Camba, operations head for NOC’s Office of the Director General for Operations, said that local police will mainly handle the security operations for ministerial officials and working group meetings, while the Armed Forces would handle security during the foreign leaders’ summit.

“For ministerial officials and working group meetings, it’s the responsibility of the Philippine National Police, supported by the Armed Forces of the Philippines,” Mr. Camba said.

“When it comes to the Leaders’ Summit, it will be the Armed Forces of the Philippines, which are primarily responsible in securing the leaders,” he added. — Adrian H. Halili

Senator wants standby fund removed

PRESIDENT Ferdinand R. Marcos, Jr. signed the General Appropriations Act for Fiscal Year 2026 during a ceremony at Malacañan Palace on Monday, Jan. 5. — NOEL B. PABALATE/PPA POOL

A SENATOR on Thursday said that he is pushing for the removal of unprogrammed appropriations in next year’s budget over corruption risks.

“I would remove the unprogrammed appropriations, in the next budget I will talk to the chairman about this,” Senator Erwin T. Tulfo, vice-chair of the Senate Finance panel, said in a news briefing in mixed Filipino and English.

Mr. Tulfo added that unprogrammed funding is no longer needed in the national budget as it has been a source of misuse.

“People don’t like it right? Because that’s where they found (abuse) in unprogrammed funding,” he said.

Critics have been calling out unprogrammed appropriations as another form of discretionary funding prone to abuse by lawmakers and officials, after reports found that anomalous and ghost infrastructure projects were funded through unprogrammed appropriations.

“Why will you have unprogrammed appropriations projects? When you don’t even have money. Why will you spend so much when your income is so little? Bad economics.”

Unprogrammed appropriations are standby funds for pre-planned government projects or emergency contingencies, it totals P150.9 billion under this year’s national spending plan following the P92.5-billion veto by the President. — Adrian H. Halili

Rise in PhilHealth reimbursements can’t keep up with hospital charges, PIDS says

PHILSTAR FILE PHOTO

THE Philippine Health Insurance Corp. (PhilHealth) recorded higher reimbursements in 2024, but these lagged the rapid rise in hospital charges, widening the gap in healthcare access between the rich and the poor.

“Hospital charges have increased significantly, decreasing the support value of PhilHealth,” the Philippine Institute for Development Studies (PIDS) said in a report on Jan. 7.

“This has likely contributed to the entrenched disparities in utilization of care among the rich and poor,” it added.

However, total reimbursements rose only 31.75% to P96.6 billion in 2024 from P73.3 billion in 2018.

“Despite this, overall PhilHealth support value and mean support value fell between 2018 and 2024,” it added.

As a result of the reduced support value, the portion of hospital bills not covered by PhilHealth had to be shouldered through alternative means — such as private insurance, medical assistance programs like the Medical Assistance to Indigent and Financially Incapacitated Patients, or direct out-of-pocket payments, it noted.

The “Utilization of Inpatient Care in the Philippines: Evidence from Social Health Insurance Claims Data” report was written by Sarah Reem D. Hesham Mohamed Hagag, Henrietta Marie M. Rodriguez, Frances Dominique V. Ho, Jhanna Uy, and Valerie Gilbert Ulep. — Aubrey Rose A. Inosante

PHL delegates secure P522.29-M sales lead in South Korean business mission

A PHILIPPINE tourism delegation to South Korea secured P522.29 million in sales leads in a business mission in late November, according to the Tourism Promotions Board (TPB).

The delegation, which comprises 40 seller companies, participated in a multi-city roadshow across Busan, Daejeon, and Seoul, where they met 204 Korean travel agents and corporate buyers.

“The TPB-led contingent included the country’s top hotels, resorts, tour operators, destination management companies, airlines, and government agencies. A total of 792 business meetings were facilitated during the mission,” it said.

On the sidelines of the event, the Philippine Department of Tourism in Korea, Cebu Pacific, and Philippine Airlines also presented product updates and route developments to provide timely insights to Korean partners.

“Our vision extends far beyond this business mission. We remain committed to a broader, long-term effort to strengthen our tourism partnership with South Korea and encourage deeper connections through travel and shared experiences,” said TPB Chief Operating Officer Maria Margarita Montemayor-Nograles.

The mission comes amid the sharp decline in international arrivals from South Korea in the first eleven months of 2025.

Data from the Department of Tourism showed that arrivals from South Korea declined 21% to 1.134 million in the January to November 2025 period.

“Since 2012, South Korea has consistently ranked as the Philippines’ top inbound tourism market,” the TPB said.

“In 2024, arrivals from Korea reached 1.76 million, underscoring the market’s enduring strength and its critical role in the country’s tourism recovery. The revival of the Philippine Business Mission Korea reflects ongoing efforts to renew industry partnerships and strengthen market collaboration moving forward,” it added. — Justine Irish D. Tabile

Marcos inaugurates Cagayan bridge

PRESIDENT Ferdinand R. Marcos, Jr. on Thursday inaugurated a P2.3-billion bridge in Cagayan province, which is expected to spur economic activity by cutting travel time and improving connectivity in the country’s northernmost areas.

The 2.16-kilometer, two-lane Camalaniugan Bridge spans the Cagayan River and offers an alternative to the Magapit Suspension Bridge.

“I am sure that this bridge will transform the economy on both sides. Many opportunities will open up, and this will provide new jobs and new business prospects in the surrounding areas. I’m confident that you will feel the economic effects in a very short time,” the President said in Filipino.

The bridge is expected to reduce travel time between the towns of Aparri and Ballesteros to about 20 minutes from roughly an hour, benefiting an estimated 6,000 daily commuters and travelers, according to government data.

Mr. Marcos said the government fast-tracked construction to deliver immediate benefits to nearby communities, including new business opportunities and jobs.

He also assured the public that spending on large-scale infrastructure projects translates into tangible economic gains for Filipinos. — Chloe Mari A. Hufana

Bill grants eligibility to contractual gov’t employees

A BILL seeking to grant civil service eligibility to contractual government employees that render at least five years of government service was filed at the House of Representatives.

House Bill No. 6960 seeks to grant civil service eligibility to government employees holding “casual or contractual positions in the first and second levels” that have rendered at least five years of “continuous and efficient” service.

“Casual and contractual employees form a significant part of our government workforce. For many years, they have rendered dedicated service in different offices and agencies, often without the security and recognition enjoyed by their counterparts in regular positions,” Party-list Rep. Nathaniel M. Oducado said in the measure’s explanatory note.

Civil service eligibility in the Philippines is earned by passing the career service exam or through special laws, giving workers access to permanent posts, promotions and greater job security in government.

“Many long-serving contractual and casual employees who have served efficiently for years remain outside that formal pool,” said Mr. Oducado.

He said the bill would not set aside the merit‑based principle in the civil service, noting that workers granted eligibility would still need to be qualified to rise through the ranks — Kenneth Christiane L. Basilio

BARMM cops seize P97.4-M imported cigarettes in Maguindanao del Norte

REUTERS

COTABATO CITY — State anti-smuggling operatives seized P97.4 million worth of imported cigarettes during a two-day operation in Parang, Maguindanao del Norte, officials reported on Thursday.

The contraband, consisting of 2,483 boxes of cigarettes from Indonesia, were found buried in a private land in Barangay Gumagadong Calawag in Parang.

Brig. Gen. Jaysen C. De Guzman, director of the Police Regional Office-Bangsamoro Autonomous Region, and Parang Mayor Kahar P. Ibay separately told reporters on Thursday that the smuggled cigarettes, in large boxes wrapped with plastic sheets, were excavated, using farm tools and a backhoe, by policemen and personnel of the Bureau of Customs and members of the Parang Municipal Peace and Order Council in an operation that started on Tuesday morning and ended late Wednesday.

Mr. De Guzman said his subordinate-officers in the Regional Mobile Force Battalion 14 and the Parang Municipal Police Station facilitated the transport, using seven trucks of the seized smuggled cigarettes to their headquarters in Camp SK Pendatun.

Policemen were dispatched early on Tuesday to Barangay Gumagadong Calawag after villagers and local executives hinted about the stockpiling by two merchants of smuggled cigarettes in a warehouse in the area, but found the facility empty.

The policemen tasked to inspect the warehouse were about to leave but continued their search around after villagers reported that a group of men, speaking to each other in the Iranun vernacular, had buried large boxes containing Indonesian-made cigarettes in a vacant lot nearby a week before.

“We are very grateful to the barangay folks and the local executives and the employees of the office of the mayor in Parang for informing us that there was this big volume of imported cigarettes stored in that barangay,” Mr. De Guzman said. — John Felix M. Unson