FOLLOWING the legislative inquiry on the use of confidential funds, two bills that seek to regulate the proper utilization of confidential and intelligence funds (CIFs) have been filed in the House of Representatives.

House leaders have filed House Bill 11192 (An Act regulating the allocation and utilization of confidential and intelligence funds imposing penalties for misuse and misappropriation) and

House Bill 11193 (An Act regulating the special disbursing officers and imposing penalties for misuse and misappropriation of funds.

The two measures were authored by 38 members of the committee on Good Government and Public Accountability led by its chairman, Manila Rep. Joel Chua, Senior Deputy Speaker and Pampanga Rep. Aurelio “Dong”Gonzales Jr., Deputy Speaker and Quezon Rep. David “Jay-Jay” Suarez, and Manila Rep. Bienvenido Abante Jr., a vice chairman of the committee.

Other authors include Rep. Franz S. Pumaren, Rep. Lorenz R. Defensor, Rep. Julienne “Jam” Baronda, Rep. Jude A. Acidre, Rep. Johnny Ty Pimentel, Rep. Romeo M. Acop, Rep. Janette L. Garin, Rep. Crispin Diego “Ping” Remulla, Rep. Jefferson F. Khonghun, Rep. Roberto T. Uy, Jr., Rep. Jonathan Keith T. Flores, Rep. Loreto S. Amante, Rep. Horacio P. Suansing, Jr., Rep. Rolando M. Valeriano, Rep. Joseph “Jojo” L. Lara, Rep. Arnan C. Panaligan, Rep. Francisco Paolo C. Ortega V, Rep. Ernesto M. Dionisio, Jr., Rep. Charisse Anne C. Hernandez, Rep. Robert Ace S. Barbers, Rep. Zia Alonto Adiong, Rep. Raoul Danniel A. Manuel, Rep. Ramon Rodrigo L. Gutierrez, Rep. Gerville “Jinky Bitrics” R. Luistro, Rep. Joseph Stephen “Caraps” S. Paduano, Rep. Dan S. Fernandez, Rep. France L. Castro, Rep. Arlene D. Brosas, Rep. Margarita “Atty. Migs” B. Nograles-Almario, Rep. Cheeno Miguel D. Almario, Rep. Mikaela Angela B. Suansing, Rep. Amparo Maria J. Zamora, Rep. Lordan G. Suan and Rep. Raul Angelo “Jil” D. Bongalon.

The proposed laws were the product of the committee’s exhaustive inquiry into the alleged misuse of P612.5 million in CIFs received by the Office of Vice President Sara Duterte and the Department of Education when she was education secretary.

In their explanatory note, the authors said SDOs, who are appointed by agency heads “based on trust and confidence,” are authorized to disburse funds through cash advances.

“While there are guidelines for cash advances provided in Commission on Audit (COA) Circular No. 97-002 for regular fund and COA-DILG-DBM-GCG-DND Joint Circular No. 2015-01 on confidential/intelligence fund, there were gaps in the guidelines, they said.

Without a law to protect funds handled by SDOs, the gaps in the guidelines made it susceptible for agency heads and disbursing officers “to abuse fund disbursement by the millions and billions without proper liquidation with impunity,” they said.

The authors added that such abuses were evident in the course of the inquiry of the committee on good government and public accountability.

They pointed out that while the committee “sees the necessity of confidential and intelligence funds in national security and peace and order for the effective implementation of law enforcement mandates for the protection of the Philippine society, it is nigh time that standards be put in place to regulate SDOs not only disbursing confidential and intelligence funds, but regular funds as well, and imposing sanctions for improper disbursement of these funds, be it intentionally or through negligence.”

In the case of CIFs, the SDO shall ensure and certify that the funds have been used in relation to the mandate of the agency directly related to national security, peace and order, or intelligence gathering for the effective implementation of its law enforcement mandate.

Activities related to national security and peace and order include purchase of information necessary for the formulation and implementation of program, activities and projects relevant to the national security and peace and order, payment of rewards, aid and/or capability development for personnel of law enforcement agencies, and volunteers/partners and other activities, crime prevention and law enforcement activities, and programs for anti-illegal drug, illegal gambling, counter-insurgency and/or counter-terrorism, illegal logging, illegal mining, illegal fishing, smuggling and human trafficking.

The bill also enumerates the following instances as prima facie evidence of misappropriations of funds: there is disbursement of funds allocated to a government agency, unit or instrumentality the mandate of which is not directly related to national security or peace and order; the SDO fails to fully liquidate the funds at the end of each year; the SDO disburses the funds to another person who shall make further disbursement of funds; there is disbursement of funds for activities not directly related to national security, peace and order, or intelligence gathering for effective implementation of its law enforcement mandate; or failure to personally comply with the documentary requirements of liquidation.

The bill mandates the Commission on Audit, Bureau of Treasury, Department of Interior and Local Government, Governance Commission for Government-owned or -controlled Corporations, Department of Budget and Management, and the Department of National Defense to review and revise their existing circulars and joint circulars, and to issue implementing rules and regulations.

AUTHOR PROFILE

Jester P. Manalastas