These projects make no sense: unstudied and unprepared for, sprouting like mushrooms.
The era of such projects is at an end. Under our administration, there will be no quotas, there will be no overpricing, the funds of the people will be spent for the people.
There’s more. Five days before the term of the previous administration ended, they ordered 3.5 billion pesos to be released for the rehabilitation of those affected by typhoons Ondoy and Pepeng. This was supposed to fund eighty-nine projects. But nineteen of these projects amounting to 981 million pesos didn’t go through public bidding. Special Allotment Release Orders hadn’t even been released and yet the contracts were already signed. It’s a good thing Secretary Rogelio Singson spotted and stopped them. Instead, they will all go through the proper bidding, and the funds will be used to provide relief to those who lost their homes due to typhoons Ondoy and Pepeng.
Let’s discuss what happened in Napocor. From 2001 to 2004, the government forced Napocor to sell electricity at a loss to prevent increases in electricity rates. The real motivation for this is that they were preparing for the election.
As a result, in 2004, NAPOCOR slumped deeply in debt. The government was obligated to shoulder the 200 billion pesos it owed.
What the public thought they saved from electricity, we are now paying for using public coffers. Not only are we paying for the cost of electricity; we are also paying for the interest arising from the debt.
If the money we borrowed was used properly, then there would be added assurance that constant supply of electricity is available. However, this decision was based on bad politics, not on the true needs of the people. The people, after having to sacrifice, suffered even more.
This is also what happened to the MRT. The government tried again to buy the people’s love. The operator was forced to keep the rates low.
In effect, the guarantee given to the operator that he will still be able to recoup his investment was not fulfilled. Because of this, Landbank and the Development Bank of the Philippines were ordered to purchase the MRT.
The money of the people was used in exchange for an operation that was losing money.
Let us now move on to the funds of the National Food Authority (NFA).
In 2004: 117,000 metric tons (of rice) was the shortage in the supply of the Philippines. What they (the government) bought were 900,000 metric tons. Even if you multiply for more than seven times the amount of shortage, they still bought more than what was needed.
In 2007: 589,000 metric tons was the shortage in the supply of the Philippines. What they bought were 1.827 million metric tons. Even if you multiply for more than three times the amount of shortage, they again bought more than what was needed.
What hurts is, because they keep purchasing more than what they need year after year, the excess rice that had to be stored in warehouses ended up rotting, just like what happened in 2008.
Is this not a crime, letting rice rot, despite the fact that there are 4 million Filipinos who do not eat three times a day?
The result is NFA’s current debt of 177 billion pesos.
This money that was wasted could have funded the following:
- The budget of the entire judiciary, which is at 12.7 billion pesos this year.
- The Conditional Cash Transfers for the following year, which cost 29.6 billion pesos.
- All the classrooms that our country needs, which cost 130 billion pesos.
This way of doing things is revolting. Money was there only to be wasted.
You have heard how the public coffers were squandered. This is what is clear to me now: change can only come from our determination to stamp out this extravagance and profligacy.
That is why starting now: we will stop the wasteful use of government funds. We will eradicate projects that are wrong.
This is the point of what we call the zero-based approach in our budget. What used to be the norm was every year, the budget merely gets re-enacted without plugging the holes.
Next month we will be submitting a budget that accurately identifies the problem and gives much attention on the right solution.
Those that I have mentioned were only some of the problems we have discovered. Here now are examples of the steps we are undertaking to solve them.
There is a case of one pawnshop owner. He purchased a vehicle at an estimated cost of 26 million pesos.
If he can afford to buy a Lamborghini, why can’t he pay his taxes?
A case has already been filed against him. Through the leadership of Finance Secretary Cesar Purisima, BIR Commissioner Kim Henares, Customs Commissioner Lito Alvarez, and Justice Secretary Leila de Lima, every week we have new cases filed against smugglers and against those who do not pay the right taxes.
We have also already identified the suspects of the cases of Francisco Baldomero, Jose Daguio and Miguel Belen, 3 of the 6 incidents of extralegal killings since we assumed the Presidency.
Fifty percent (50%) of these incidents of extralegal killings are now on their way to being resolved.
We will not stop the pursuit of the remaining half of these killings until justice has been achieved.
The era of such projects is at an end. Under our administration, there will be no quotas, there will be no overpricing, the funds of the people will be spent for the people.
There’s more. Five days before the term of the previous administration ended, they ordered 3.5 billion pesos to be released for the rehabilitation of those affected by typhoons Ondoy and Pepeng. This was supposed to fund eighty-nine projects. But nineteen of these projects amounting to 981 million pesos didn’t go through public bidding. Special Allotment Release Orders hadn’t even been released and yet the contracts were already signed. It’s a good thing Secretary Rogelio Singson spotted and stopped them. Instead, they will all go through the proper bidding, and the funds will be used to provide relief to those who lost their homes due to typhoons Ondoy and Pepeng.
Let’s discuss what happened in Napocor. From 2001 to 2004, the government forced Napocor to sell electricity at a loss to prevent increases in electricity rates. The real motivation for this is that they were preparing for the election.
As a result, in 2004, NAPOCOR slumped deeply in debt. The government was obligated to shoulder the 200 billion pesos it owed.
What the public thought they saved from electricity, we are now paying for using public coffers. Not only are we paying for the cost of electricity; we are also paying for the interest arising from the debt.
If the money we borrowed was used properly, then there would be added assurance that constant supply of electricity is available. However, this decision was based on bad politics, not on the true needs of the people. The people, after having to sacrifice, suffered even more.
This is also what happened to the MRT. The government tried again to buy the people’s love. The operator was forced to keep the rates low.
In effect, the guarantee given to the operator that he will still be able to recoup his investment was not fulfilled. Because of this, Landbank and the Development Bank of the Philippines were ordered to purchase the MRT.
The money of the people was used in exchange for an operation that was losing money.
Let us now move on to the funds of the National Food Authority (NFA).
In 2004: 117,000 metric tons (of rice) was the shortage in the supply of the Philippines. What they (the government) bought were 900,000 metric tons. Even if you multiply for more than seven times the amount of shortage, they still bought more than what was needed.
In 2007: 589,000 metric tons was the shortage in the supply of the Philippines. What they bought were 1.827 million metric tons. Even if you multiply for more than three times the amount of shortage, they again bought more than what was needed.
What hurts is, because they keep purchasing more than what they need year after year, the excess rice that had to be stored in warehouses ended up rotting, just like what happened in 2008.
Is this not a crime, letting rice rot, despite the fact that there are 4 million Filipinos who do not eat three times a day?
The result is NFA’s current debt of 177 billion pesos.
This money that was wasted could have funded the following:
- The budget of the entire judiciary, which is at 12.7 billion pesos this year.
- The Conditional Cash Transfers for the following year, which cost 29.6 billion pesos.
- All the classrooms that our country needs, which cost 130 billion pesos.
This way of doing things is revolting. Money was there only to be wasted.
You have heard how the public coffers were squandered. This is what is clear to me now: change can only come from our determination to stamp out this extravagance and profligacy.
That is why starting now: we will stop the wasteful use of government funds. We will eradicate projects that are wrong.
This is the point of what we call the zero-based approach in our budget. What used to be the norm was every year, the budget merely gets re-enacted without plugging the holes.
Next month we will be submitting a budget that accurately identifies the problem and gives much attention on the right solution.
Those that I have mentioned were only some of the problems we have discovered. Here now are examples of the steps we are undertaking to solve them.
There is a case of one pawnshop owner. He purchased a vehicle at an estimated cost of 26 million pesos.
If he can afford to buy a Lamborghini, why can’t he pay his taxes?
A case has already been filed against him. Through the leadership of Finance Secretary Cesar Purisima, BIR Commissioner Kim Henares, Customs Commissioner Lito Alvarez, and Justice Secretary Leila de Lima, every week we have new cases filed against smugglers and against those who do not pay the right taxes.
We have also already identified the suspects of the cases of Francisco Baldomero, Jose Daguio and Miguel Belen, 3 of the 6 incidents of extralegal killings since we assumed the Presidency.
Fifty percent (50%) of these incidents of extralegal killings are now on their way to being resolved.
We will not stop the pursuit of the remaining half of these killings until justice has been achieved.
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