THE DRAFT OF THE PORK BARREL ABOLITION P.I.

A preliminary final draft but in most matters already a final draft

ready for a people’s congress

PRELIMINARY DISCUSSION

• The drafting lawyers agreed to make the P.I. Anti Pork Barrel Bill SIMPLE

• EASILY UNDERSTANDABLE

• Thus, take away the legalese

• AND SHORT (the drafting people wanted to cut it to 3 to 5 pages) 12 pt. font.

• Practicality and • facility

• The drafters immediately focused on the what is PORK BARREL – IT WAS AGREED that LUMP SUM was the operative word

Let us begin

• I would like to show you an earlier draft and a later draft to show you the development of the drafting process. When I say earlier, I did not mean to say the earliest drafts which were very comprehensive, very detailed, and 15 to 20 pages long.

• The two P.I. Bill drafts have the same organization structure, to wit:

• Title• Short title• Declaration of State Principles and Policies• Definitions• General Mandatory Rules • Special Offenses• Procedural Matters (diligence, repeal, effectivity)• Restrictions on Amendments

By Sections

• Section 1 is short title• Section 2 is the declaration of state policies and

Principles• Section 3 is definition• Sections 4, 5, and 6 are General Mandatory

matters• Section 7 is special offenses with penalty• Sections 8,9 and 11are procedural provisions• Section 10 is the Restriction on Amendment

The Contentious Points

• Declaration of State Principles and Policies

• Definitions• Whether the local government will be included in

the prohibition - tactical issues

• Let us proceed to tackle the provisions one by one…..

Earlier Title

• AN ACT • ABOLISHING THE PORK BARREL

SYSTEM, • STRENGTHENING THE SYSTEM OF

CHECKS AND BALANCES OVER PUBLIC FUNDS,

• PROHIBITING CERTAIN ACTS, AND• PROVIDING PENALTIES THEREFOR

A Later Title

• AN ACT• ABOLISHING THE PRESIDENTIAL AND

CONGRESSIONAL PORK BARREL SYSTEM,

• STRENGTHENING THE SYSTEM OF CHECKS AND BALANCES OVER PUBLIC FUNDS,

• PROHIBITING CERTAIN ACTS, AND• PROVIDING PENALTIES THEREFOR

Section 1

• SECTION 1. Short Title—This Act shall be known as “The Pork Barrel Abolition Act.”

• (The two drafts are the same.)

Declaration of State Policies• The earlier text reads:

• SEC. 2. Declaration of State Policies and Principles. – The State affirms the need to establish a system of strict accountability over the use of public funds to ensure that they are spent solely for functions, programs, projects and activities that redound to the interest of the people, especially the poor and marginalized sectors of Philippine society. In this endeavor, it is essential that the executive, legislative and judicial branches of the Government exercise their powers and authority over public funds within the parameters set by the Constitution. Recognizing that the pork barrel system violates the principle of separation of powers and of checks and balances and frustrates accountability over public funds, the State shall ensure that measures designed to eliminate the rules and practices of the pork barrel system are in place, that the mechanisms of checks and balances are strengthened, and that constitutional safeguards related to budgeting, appropriation and use of public funds are followed.

The Later Draft reads

• SEC. 2. Declaration of State Policies and Principles. – The State affirms the need to establish a system of strict accountability over the use of public funds to ensure that they are spent solely for functions, programs, projects and activities that redound to the interest of the people, especially the poor and marginalized sectors of Philippine society.

• Recognizing that the pork barrel system is one of the main sources of graft and corruption and patronage politics, the State shall ensure that measures designed to eliminate the rules and practices of the pork barrel system are in place and that the mechanisms of checks and balances are strengthened.

Definitions

• The earlier draft defined the following:• (a) Augmentation• (b) Government Agency• (c) Impoundment• (d) Lump Sum• (e) Pork Barrel• (f) National Official• (g) Savings

The Later Draft has these:

• (a) Pork Barrel• (b) Lump Sum (Lump sum appropriation).

• (c) Impoundment• (d) National Official

Pork Barrel Definition (same)

• is a lump sum public fund the discretion over which is given by law, regulation or practice to the President, legislator or group of legislators, or any public officer. The exercise of discretion by public officers relates to the use, allocation or release of pork barrel funds, the identification or selection of projects, implementors or beneficiaries, or any or all of these.

Lump Sum (same)

• is a fund that is not itemized or does not specify a determinate amount and the program, activity or project and implementing government agency for which it is appropriated, including the allotment class, beneficiaries, standards for selection, and other matters required to be disclosed by government agencies in their budget estimates under existing law. A lump sum appropriation is a single but divisible sum of money which serves as a funding source for multiple purposes and leaves the purposes of the appropriation and their actual amounts for further determination after the enactment of the appropriation law.

Impoundment (same)

• is the act of the President of not spending money appropriated by law. Impoundment may be through rescission or cancellation of the appropriation, or deferral or suspension of the release of the appropriated funds.

National Official (earlier)

• refers to the President, any head of department and national agency or his/her subordinate/agent/authorized representative and member of congress.

National Official (later)

• under this Act refers to the President, head of department or national agency or his/her respective subordinate, agent, or authorized representative and any member of Congress

The following definitions were taken out

• (a) Augmentation is the act of the President of the Philippines, the President of the Senate, the Speaker of the House of Representatives, the Chief Justice of the Supreme Court, the Heads of Constitutional Commissions, the Ombudsman, or the Commissioner on Human Rights of transferring or realigning savings from the budget of their respective offices to other items also within the budget of their respective offices.

• (b) Government Agency refers, as stated in this law, to any of the various organs or units of the Government, including the Office of the President, the Congress, the Supreme Court, a department, bureau, office, instrumentality, or government-owned or controlled corporation.

• Savings refers to any available portion or balance in an appropriation item under the law, which has become free from any obligation or encumbrance due to (i) the completion or final discontinuance or abandonment of the work, activity or purpose for which the appropriation is authorized; or (ii) the non-payment of compensation and related costs as a result of vacancies in positions and leaves of absence without pay; or (iii) the implementation of measures resulting in improved systems and efficiencies that enabled government agencies to meet and deliver the required or planned targets, programs and services approved in an appropriation law at a lesser cost.

General Mandatory Provisions

• (a) All proposed budgets submitted to any legislative body shall contain only itemized or line-item appropriations, except appropriations for the purpose of relief and rescue operations during calamities, and for the intelligence fund of the NSC, DND and the DILG. (same)

This is the earlier one

• (b) Releases from lump sum funds allowed under this Act shall be supported with schedules indicating the specific government agency that received them and the specific purposes for the same. The expenditures shall be reported immediately to the legislative body (later draft changed this to CONGRESS) by the government agency to which the sum has been appropriated, and subject to special audit by the COA.

• (c) All unspent, unreleased, and unobligated funds of any government agency by

• the end of the fiscal year shall remain in or revert to the General Fund and shall not thereafter be available for expenditure except by a subsequent appropriation law; Provided, however, that the President, the President of the Senate, the Speaker of the House of

• Representatives, the Chief Justice of the Supreme Court, and the heads of

• Constitutional Commissions may authorize their respective government agency or office to use the savings realized by the agency or office from its regular budget during the fiscal year to augment any existing appropriation item for the same agency or office under the general appropriations act; Provided, further, that the augmentation may only be done during the same fiscal year when the savings were realized; Provided, finally, that the power to realign or use savings may not be delegated to other public officers.

Separated Mandatory Provisions

• SEC. 5. Appropriation of special funds. Within the fiscal year following the approval of this Act, a report on the financial status of every account that is covered by a special law authorizing the continuous disbursement of funds for a special purpose shall be submitted to the Congress. Thereafter, the government agency having control or administration of the account shall submit annually to the President a proposed budget specifying therein the amounts proposed to be expended and the programs, activities and projects for which the amounts are proposed to be appropriated, consistent with the special purpose of the fund. Such proposed budget shall be included in the National Expenditure Program that the President shall submit to the Congress. (same)

• SEC. 6. Abolition of the Presidential Social Fund. The share of the Government in the aggregate gross earnings of the Philippine Amusement and Gaming Corporation provided under Section 12 of Presidential Decree No. 1869 as amended by Presidential Decree No. 1993 shall henceforth be remitted regularly to the National Treasury and may be used only pursuant to a valid appropriation made by law. The discretionary authority of the President granted under the aforesaid Section 12 to use the fund “to finance the restoration of damaged or destroyed facilities due to calamities” is hereby revoked. (same)

Special Offenses

• SEC. 7. Special Offenses. The penalty of imprisonment of not less than one year nor more than ten years and perpetual disqualification from public office shall be imposed on the following persons for committing any of the following acts:

• (a) Any public officer who authorizes the spending of public money that is not covered by or is in violation of any appropriation law; (earlier)

• (a) Any national official who authorizes the spending of public money that is not covered by or is in violation of any appropriation law; (later)

Earlier

• (b) Any public officer who includes a lump sum amount in any budget proposal submitted to the legislature, or any member of the legislature who approves the inclusion of any lump sum amount in the general or supplemental appropriations acts; Provided, the president shall be likewise liable; Provided, further, that the appropriation of lump sums for the purpose of relief and rescue operations during calamities and for the intelligence fund of the NSC, DND and DILG shall not be covered by this prohibition.

• (b) Any national official who, in violation of Section 4 (a), includes a lump sum amount in any budget proposal submitted to Congress, or any member of Congress who approves the inclusion of any lump sum amount in general and supplemental appropriations act; Provided, that the president shall be likewise liable; Provided, further, that the appropriation of lump sum for the purpose of relief and rescue operations during calamities and for the intelligence fund of the NSC, DND and DILG shall not be covered by this prohibition;

Earlier

• (c) Any public officer who inserts in an appropriation bill provisions allowing post-enactment intervention by legislators in the implementation of the appropriation measure

Later

• (c) Any national official who inserts in an appropriation bill provisions allowing post-enactment intervention by a member or members of Congress in the implementation of the appropriation measure;

Earlier

• (d) Any legislator, or his agent or representative, who directly or indirectly intervenes or participates in the implementation of any appropriation law through any post-enactment act or practice, including but not limited to identification or endorsement of projects, beneficiaries or contractors, or assuming authority or exercising influence in the release, allocation or realignment;

Later• (d) Any member of Congress, or his

agent or representative, who directly or indirectly intervenes or participates in the implementation of any appropriation law through any post-enactment act or practice, including but not limited to identification or endorsement of projects, beneficiaries or contractors, or assuming authority or exercising influence in the release, allocation or realignment of appropriated funds;

Earlier

• (e) Any public officer who declares savings outside of the cases provided in Section 3, paragraph (g) hereof, or realigns the improperly declared savings;

Later

• (f) Any national official who declares savings outside of the cases provided in Section 3, paragraph (g) hereof, or realigns the improperly declared savings;

Earlier

• (f) Any public officer who impounds any appropriation or portion thereof by retention, reduction, or deferral or suspension of release of funds, or any other means, for whatever reason or purpose, unless there is an official declaration by the President of an unmanageable National Government budget deficit.

Later

• (g) Any national official who impounds any appropriation or portion thereof by retention, reduction, or deferral or suspension of release of funds, or any other means, for whatever reason or purpose, unless there is an official declaration by the President of an unmanageable National Government budget deficit.

Earlier

• Any public officer or private individual who persuaded, induced, influenced or cooperated with any public officer in violating any of the provisions of this Act shall suffer the same penalty.

Later

• Any person including a private individual who persuades, induces, influences or cooperates with any national official in violating any of the provisions of this Act shall suffer the same penalty.

Earlier

• The above penalties shall be in addition to the criminal, civil and administrative liabilities that the public officer or private individual may incur under existing laws.

Later

• The above penalties shall be in addition to the criminal, civil and administrative liabilities that the national official or private individual may incur under existing laws.

Procedural Matters

• SEC. 8. Diligence required; presumption. All public officers involved in the approval, release and disbursement of funds shall exercise extraordinary diligence in the performance of their functions. When an anomalous transaction is duly proved, the public officer responsible for the approval, release or disbursement of funds shall be presumed to have knowledge of the anomalous transaction. (Same)

Mandatory Matters

• SEC. 9. Repealing clause. Section 12 of Presidential Decree No. 1869, as amended by Presidential Decree No. 1993, is hereby amended as provided in Section 6 hereof. Any law, presidential decree, executive order, rule or regulation, or any issuance contrary to or inconsistent with the provisions of this Act is hereby repealed, modified or amended accordingly. (same)

Mandatory Matters

• SEC. 11. Effectivity Clause. This law shall become effective after fifteen (15) days following the completion of its publication in two newspapers of general circulation. (same).

Restrictions

• SEC. 10. Restrictions on amendment or repeal of this Act. This Act may only be repealed, modified or amended by a law that has been approved by the people under the system of initiative and referendum established by Republic Act No. 6735. (same)

• We have made the second step of our journey of a thousand miles. CONGRATULATIONS.