2016 budget should be approved by year-end

SPFMD: We finished the debates on the 2016 national budget last night. We expect to pass the budget on second and third reading today. The next week will be devoted for the Bicameral conference committee meetings between the Senate and the House of Representatives to thresh out the differences, so we expect the Bicam will finish its work by December 4. We will ratify the Bicam the week of December 7 to December 11, including the printing of the budget itself. So we expect to submit the budget by December 14. That’s our target date so that the President will have a week to 10 days to review the budget and see whether he will exercise his line-item veto as he would traditionally. We are very confident that we will have the budget finished by the month of December. It is so important because in the budget there is P57 billion for the Salary Standardization Law IV. Ang kabuuan po ng alokasyon para sa SSL ay P225.8 billion which will be given in four years beginning 2016 with an allocation of about P57 billion. It is important that the budget becomes effective by January 1, 2016, so that we can expect this SSL IV. Also, immediately after we pass the budget, we will give the highest priority to the implementing law on the SSL IV which will now define in definite terms what the salary scale will be for each salary grade of government employees. We also want to pass the SSL IVwithin December so that in January it will be implemented with the funds coming from the authorization in the 2016 national budget.

Isang amendment na ating hihilingin sa Senate Committee on Finance ang pagbabalik ng P500 million sa budget ng Comelec in order that we can speed up the transition of the election results. The Comelec has requested that the budget be augmented by P500 million for what they call as the electronic results transmission solution management and services in order to speed up the transmission of the results. This was not in the national expenditure program submitted to Congress. The HoR included this and found the request of the Comelec to be in order and therefore, augmented the budget of the Comelec by P500 million. However, the Senate Finance Committee did not approve it and in the committee report, it deleted the P500 million. We are requesting the Senate Finance Committee as our amendment the reinstatement of the P500 million for the Comelec in order to speed up the transmission of the results.    

Q: On the re-opening of the Mamasapano hearing

SPFMD: The Committee on Rules has not yet submitted its report.

Q: On the differences in the Senate and House version of the 2016 budget

SPFMD: I could not give a definite answer because there will be amendments. There will be amendments that will be submitted that is precisely why I cannot respond to you whether or not there will be very substantial differences. Because while it was manifested on the floor, I do not know whether or not it will find its way in the Senate version.

Q: On Senator Enrile’s request to increase OVP budget

SPFMD: They will submit it to the committee. I do not even know if that will reach the floor because that will be submitted first to the committee.

Q: Yung sa P500 million, saan po kaya kukunin yun?

SPFMD: Kung saan nilagay noong tinanggal nila. It must have been given somewhere else. We just have to recall what augmentation was done as a result of the reduction.

Q: Ang sabi ni Senator Miriam, bloated at ambitious daw yung budget?

SPFMD: The more accurate statement would be that not everything can be bid out and executed within a calendar year, especially in the capital outlays the budget is still good for another year and therefore, the expenditure programs will continue for another year. This is not uncommon because there are delays. For example, as we talk today you will see an advertisement in the newspapers bidding out projects. And then it is possible that by the end of the year, it is not yet awarded and no SARO (Special Allotment and Release Order) has been made.  But it doesn’t mean that it is unspent, because by the first quarter of next year the authorization to spend for that project is still good and the SARO can be issued. May spill over talaga hind maiiwasan.

Q: Ang sabi mayroon pang lumpsum at pork barrel?

SPFMD: Gusto kong malaman kung ano yung sinasabi nila. As far as I know, there is no inappropriate lumpsum. But there are lumpsum items that cannot be avoided. For example, yung calamity fund, hindi mo naman pwedeng alamin at i-disaggregate yung calamity fund. As far as I know there are no lumpsum appropriations but we would like to see which items are alleged to be lumpsum.

Q: Yung sinasabi ninyon spill over ng budget for another year, Constitutional ba yun?

SPFMD: Yes. The capital outlay is good for two years, not the MOOE and salary (or Personal Service).

Q: Papaano yun, may Comelec ban na in March next year?

SPFMD: What it simply means is that you ask the permission of the Comelec to execute the project. So it is still allowed, except that the COmelec has to approve it.

Q: Yung sa case ng DILG on the Local Government Support Fund, pwede bang i-download iyon sa LGU before the ban?

SPFMD: I cannot answer that very technical question.

Q: Si Speaker Belmonte, suko na doon sa tax reform kasi hindi naman daw suportado ni PNoy. Dito ba sa Senate?

SPFMD: We cannot take up the bill because that’s a revenue measure that must come from the House.

Q: Tama po ba iyon?

SPFMD: I do not want to comment on that because that’s an affair of the House.

Q: On politics, what was the LP’s reaction on the presidential run of Mayor Duterte?

SPFMD: To me, the best politics, the best way of getting the support is to do your work and I do not want to comment on political issues while I work on the national budget.  

Will Pass Budget ASAP

Q: Tuwang tuwa ang ating mga professional drivers, ang ating mga holder ng professional driver’s licenses. Aba eh suspended temporarily lang ba yung bagong order ng DOTC sa mga kukuha ng professional driver’s license?

SPFMD:  Sinuspinde lang temporarily para review-hin. Alam po natin na yung mga professional driver’s license  ay yung mga lisensya ng mga jeepney driver at ng mga bus driver, yung mga pampasaherong, para po sa kanilang hanapbuhay. Tayo po ay hindi kukuha ng professional driver’s license, kung hindi yung ordinaryong lisensiya lang.

Kaya po kami nagtataka kung bakit biglang sinama yung requirement ng clearance sa NBI at sa pulis, at hindi maipaliwanag kung ano ang rason nito. Ang sabi nila, “Baka po may rapist diyan na may mga kaso.”

Ang sabi ko, “Teka, ano ba ang mga kaso diyan na hindi na pwepwede ang driver’s license?” Hindi po nila masagot. Ang sabi ko, “Itong bang libel ay kasama,kung  ikaw ay may kaso na libel ay hindi kana pwede bigyan ng professional driver’s license?”

So anong krimen ang pwedeng mag-disqualify sa isang aplikante ng professional driver’s license? At  kung yaan naman ay kaso, ibig bang sabihin ay  habang may kaso ay hindi ka pwede mag-drive, ay hindi ba may presumption of innocence tayo?

At sinasabi nga ni Senator Ralph Recto, pagpunta lang sa NBI, tsaka sa pulis, eh dalawang araw na siguro ang mawawala sa kinikita ng nagmamaneho ng bus, sa haba ng pila.  Sa umpisa ay parang may resistance, kaya ang sabi namin, “Oh sige.” Kaya pinilit namin ng pinilit, hanggang tinanong ko, “ Hindi ba pwede itong pag-aralan muna, at habang pinagaaralan ay suspendihin muna ang effectivity?" So pumayag sila, at isumite muna sa Senado ang new rules pagkatapos nila review-hin  para ating matingnan at maipaliwanag sa publiko kung ano ba tong dambuhalang requirement na ito.        

Q: Hanggang ngayon rin po, hindi pa rin nakakakuha ng lisensya ang ating mga kababayan, hanggang resibo lang.   

SPFMD: Tama po iyan, 700,000 daw ang kanilang backlog. Wala eh, yung  resibong hawak mo ay aabutan ka na ng renewal bago mo pa makuha yung dapat mong lisensiya, yung plastic. 

Q: Yung plate numbers din maraming namomroblema. Dapat  po  ay agad aksyunan ito ng LTO. Yung plate numbers, Pebrero pa dapat ang pagrelease noon, pero hanggang ngayon ay wala pa.

SPFMD: Maswerte kung meron ka na. Ang masama pa diyan eh kahit meron ka nang plaka, papalitan nila dahil kailangan bago lahat ng plaka, and yet ang tagal bago dumating.

Q: Binusisi nang husto yung budget ng DOTC kahapon ninyo ni Senator Recto kung totoong walang backlog, eh bakit hanggang ang tagal kumuha ng driver’s license. Ang sagot ng DOTC, ay within 30 minutes ay makukuha mo na yung driver’s license renewal, samantalang and dami pa nilang backlog.

SPFMD: Ang makukuha mo ay resibo.

Q: Iyan po ba ay makakaapekto din, dahil mukhang mahirap ipasa itong budget ng ilang government agencies, particularly the DOTC?  

SPFMD: Maipapasa iyan. Ngunit talagang bubusisiin namin ng husto, titingnan kung saan ang talaga nagkukulang ang DOTC, imo-monitor ng Senado kung ano ba talaga ang nangyayari dito, kung bakit ba may 700,000 na backlog.

Alam mo kadalasan diyan, yung mga problema sa bidding – alam mo na, yung mga misteryosong nangyayari sa bidding – kaya yung mga hindi nanalo, tatakbo sa husgado at puro restraining order ang inaabot natin.

Q: Isa pa ho, hindi po ba posibleng gahulin sa panahon considering na marami pang ahensya ng gobyerno ang dadaan diyan sa budget hearings. Hindi ba kakapusin ng panahon ng Senado para ipagtibay ang budget sa 2016?

SPFMD: Ipagpapatuloy po namin ang debate namin sa budget, at aaprubahan namin ang budget, ngunit hindi ibig sabihin na kakalimutan na ang problema ng LTO at ng DOTC. 

Q:  Sabagay ang Senado ay mas kaunti ang miyembro kesa sa Kamara de Representante, kumusta ba ang  attendance diyan sa pagdinig ng Senado sa national budget?

SPFMD: Maayos po, laging ang aming schedule ay nasusunod, except for one or two agencies na hindi naman malaki ang budget. Nasusunod po ang aming schedule sa mga ahensyang nakasalang, at bukas po ako ay naniniwala na kayang aprubahan ito on second and third reading.

Q: Di problema ang quorum sa kabila ng katotohanan na maraming kagawad ng Senado ang kumakandidato ngayon. 

SPFMD:  Tama iyan. Alam mo ngayon lang  ako nakakita na 5 ang kandidato namin sa Senado sa pagkabise pangulo, may 2 pagka-pangulo, may 2 nakakulong. Out of the 24, 9 o 10 ata ang kadalasan ay hindi nakakadalo . Medyo hirap, ngunit nakakabuo pa rin. 

Q: Talagang sipag lang ah.Dapat lang  isingit, dahil iyan po ang inyong directive sa mga kakandidato sa 2016 – huwag kalilimutan ang pag-attend sa mga sessions.   

SPFMD: Tama po iyan. Iyan ang ating appeal, na yung pinakamagaling na pamumulitika ay gawin natin ang ating trabaho.

P50B for state workers' Pay hike

Q: Assesment po ninyo sa katatapos lang na APEC Leader’s Summit?  

SPFMD:  Malaking bagay po at ating naipakita sa ating mga kababayan at mga bisita na talagang lumago na ang ating ekonomiya, at mas importante ay binigyang diin natin ang papel ng mga small, medium  and micro enterprises, yung mga maliit na mangangalakal  na siyang nakakapagbigay ng maraming trabaho at kabuhayan sa ating mga kababayan.  

Q: In fact, under your leadership, napasa yung Go Negosyo bill diba?

SPFMD: Marami po kaming naipasa na mga panukalang batas upang mabigyan natin ng pagakakataon na lumago ang mga small and medium-scale industries dahil po 90% ng ating mga kompanya sa ating bansa, ay yang mga small and medium-scale enterprises (SMEs), at maraming trabaho naibibigay po iyan sa ating mga kababayan. 

Q: How can we assure continuity ng magandang programa na iyan? Ngayon ay kaliwa’t kanan ang pagtatayo ng mga Negosyo Centers, at nakita natin ang pagdami ng SMEs natin.

SPFMD: Mayroon po tayong mga Negosyo Centers kung saan po mas madali po ang pagrehistro ng mga small and medium industries, binigyan po natin sila ng recognition para sa mga loans na nakukuha sa mga bangko, yung ating mga tax treatment sa kanila, nandiyan na po sa batas na iyan, hindi na po mapapalitan.

Q: With the law, hindi po pwede na hindi to ipagpatuloy?

SPFMD: Tama po iyan, kahit na anong administrasyon ang papasok sa ating bansa, patuloy po iyan dahil iyan ay batas na.

Q: Kanina ay kausap namin si Associate Commissioner Gilbert Repizo ng Bureau of Immigration, ngayon lang po lumabas itong mga impormasyon tungkol sa mga serious threats nitong katatapos na APEC. In fact, may mga pinagdadampot pala talaga. Sabi ko nga po, yung iba ay nagrereklamo doon sa seryoso at mahigpit na seguridad pero may totoong seryosong pagbabanta mula po sa mga dayuhan na pumasok sa bansa. 

SPFMD: Tama po iyan, at siguro po mapapagpasyensyahan ng ating mga kababayan yung konting higpit sa seguridad dahilan po sa mga banta sa ating seguridad at nung 20 na heads of state na nandito po sa ating bansa. Can you imagine kung may nangyari naman ay talagang nakakahiya po sa ating buong bansa. Ngayon po ay taas-noo tayong masasabi na talagang matahimik sa atin and we were able to secure all these heads of states. 

Q: That was an effort na ginawa ng iba’t ibang sector, kasama ang DILG, DND, BI, halos lahat ng ahensiya ay kumilos.

SPFMD: Tama po iyan. Ang hindi po nakakilos ay yung Kongreso dahil isang linggo kaming wala po sa Senado, yung aming pong pagdedebatehang national budget, ay naantala dahil sa APEC, kasama po iyan sa ating kooperasyon.

Ngayong umaga po ay aming uumpisahan ang national budget, at iyan po ay may early Christmas sa ating mga kawani sa pamahalaan, dahil kasama po dito sa ating P3 trillion budget ay mayroong P50.7 billion budget na nakalaan para sa pagtaas ng sahod ng ating mga kawani sa pamahalaan. Uulitin ko lang po, may P50.7 billion na nakalaan sa ating 2016 budget para po sa ating mga kawani sa pamahalaan, at itong budget na po na ito ay ating gagamitin pagkatapos natin maipasa bago po magpasko itong Salary Standardization Law IV.

Kaya malaking bagay po itong budget na maipasa po natin on time. Uumpisahan po namin ang mga debate ngayong umaga ng alas-9, at gagawin po namin ang lahat para po by first week of December ay ating maipapasa po ito sa Senado.

Q: So itong adjustment ay mararamdaman by January 2016?

SPFMD: Tama po iyan. By January 2016  ay mararamdaman na po ang pagtaas ng sahod ng ating mga kawani  ng pamahalaan.

Q: Sa Senado po walang problema, pero baka sa Kongreso, walang quorum?

SPFMD: Hindi po, naipasa na nila. Ikaw, mga dating mo itong kasamahan sa Kongreso, nangangantiyaw ka ah (laughs). Ngunit naipasa na po nila, at naibigay na po sa amin noong nakaraang linggo, ngunit dahil sa APEC ay hindi po namin natalakay.

Alam mo dito rin sa budget na ito, isang malaking dagdag ay sa budget ng Ombudsman. Sa kasalukuyang taon, ang budget ng Ombudsman ng P1 billion. Dito sa 2016 budget, tataas sa P1.7 billion o 70% increase.

Alam mo dito sa kasaysayan ng ating mga national budget, nakikita natin na talagang nadadagdagan  ang mga budget ng mga critical na ahensya ng ating pamahalaan, gaya ng Ombudsman na siyang lumalaban sa katiwalian sa ating pamahalaan, kaya 70% ang pagtaas, from P1 billion in 2015 to P1.7 billion in 2016. Malaking bagay po ito.   

Q: Ano po iyan, para sila ay magha-hire ng additional na mga abogado?

SPFMD: Kasama po iyan, ang additional lawyers, dahil medyo marami rin ang mga kaso diyan sa Office of the Ombudsman na medyo nabibinbin, kung minsan tumatagal. Kaya kasama diyan ang pagdagdag sa mga abogado, sa ngayon po mayroon po sa mahigit kumulang na 20,000 na reklamo sa mga kawani ng pamahalaan at ito po ay marami talagang kaso diyan kaya siguro kailangang dagdagan ang ating mga abugado. 

Q: Nababanggit po ninyo itong itinaas itong budget sa 2016, saan po natin kukunin iyan?

SPFMD: May sapat po na resources ang ating pamahalaan, yung ating deficit ay naco-control natin. May deficit ngunit iyan po ay within standards. Ito po ay may sapat na pondo, at isa sa mga pinanggagalingan ng pondo ito ay yung ating ‘sin taxes’ na ating ipinasa noong 3 taon na ang nakakaraan. Yung  sin taxes po, mahigit sa P100 billion ang nakokolektang karagdagan dahil po sa ating ginawang batas.

Q: Ang pangamba, baka taasan daw po ang buwis natin.

SPFMD: Hindi po, wala pong balak na magtaas ang buwis.

Q: Siguro po  dapat din natin i-commend ang BIR, dahil ang taas ng kanilang collection.

SPFMD:  Tama po iyan. Medyo marami pong umuungol, pero kailangan po natin iyang karagdagang buwis dahil medyo mababa ang ating koleksyon. Dahil kahit tumataas ang koleksyon ngunit as a percentage - ang measure diyan ay ‘Gaano ba ang porsyento ng buwis na nakokolekta doon sa kabuuan ng ating ekonomiya – ay medyo mababa pa, kaya nagsusumikap ang BIR na pataasin pa natin without additional tax revenues.

Q: Hindi niyo ba kino-consider yung ‘Soda Bill,” yung tax sa softdrinks?

SPFMD: Wala pa sa amin. Kasi iyan ay revenue measure,at iyan ay nanggagaling at dapat tatapusin muna sa Kamara De Representante. ###                  

Drilon: Good governance led to increased gov't income

Senate President Franklin M. Drilon underscores the Philippine government's sincerity and commitment to improve corporate governance in the public sector during his speech at the ASEAN Corporate Governance Conference and Awards held last November 14, 2015 at the Manila Polo Club, Makati City. Drilon, who authored the landmark Government-Owned and Controlled Corporation (GOCC) Governance Act of 2011, said that due to reform measures of the present administration, the income and contributions of state-owned enterprises to the national coffers have tripled throughout the past four years, from P12 billion in 2010 to P36.85 billion in 2014. (PRIB Photo by Cesar Tomambo/ November 14, 2015)  

Follow Principles of Good governance

Q:  On the inclusion of Philippine publicly-listed companies (PLCs) to this year’s ASEAN Top 50 PLCs

SPFMD: It was very very encouraging that in the ASEAN region, we have these companies who can be models for governance and we are willing to support any initiatives the SEC (Securities and Exchange Commission) may have in terms of legislation.

As you know, four years ago, we wrote the GOCC (Government-owned and controlled corporation) Governance Act which governed the manner in which GOCCs were being operated. It has tripled the contribution of the GOCCs to the national coffers, from about P12 billion in 2010 to P36 billion to 2014.

Q:  How important is good corporate governance to our corporations?

SPFMD: With the ASEAN integration, it’s very important that the principles of good governance are followed. The publicly-listed corporations would need this scorecard in order that the investing public can have confidence in the manner in which our corporations are being run. ###

Reach greater economic heights

Thank you very much for your very kind introduction.

Let me formally greet the Chairperson of the Securities and Exchange Commission Chairperson Teresita J. Herbosa, Chairman Jose Pardo of the Philippine Stock Exchange, and Mr. Datuk Ranjit Singh, Chairman of the Securities Commission of Malaysia. Let me also take this opportunity to greet Mr. James Nugent, Director-General of the Southeast Asia Department of the Asian Development Bank. I also see here my mentor in corporate governance, Mr. Jess Estanislao. Distinguished guests, friends, ladies and gentlemen, a very pleasant evening to all of you.

It is a great honor and pleasure to speak before you on this momentous occasion – the first ASEAN Corporate Governance Conference and Awards.

Not so long ago, corporate governance did not mean that much except to people in the academe. But two events in world history highlighted its extreme importance.

First, the 1997 Asian financial crises, which showed that the corporate sector’s unbridled pursuit of profits can severely affect economies. The  financial crisis that affected the major economies in the ASEAN region sadly underscored  the lack of corporate governance mechanisms in these  countries.

And second, the corporate governance scandals in the United States of America and Europe in the early part of the 21^st century that spurred some of the largest insolvencies in corporate history.

Today, everyone from the corporate world to bureaucrats and lawmakers recognize that corporate governance is important in macroeconomic development.

          

I commend the ASEAN Capital Markets Forum which, in partnership with the Asian Development Bank, initiated the ASEAN Corporate Governance Scorecard (ACGS), so as to raise the general corporate governance standards of ASEAN publicly listed companies. The scorecard will greatly help in increasing their attractiveness to investors, and promote the ASEAN as an asset class.

        

By actively participating in the ACGS initiative, the Philippines is manifesting its resolve to pursue corporate governance.

     

 It is heartwarming to note that eleven Philippine publicly listed corporations (PLCs) made it to the ASEAN Top 50 PLCs which will be honored tonight. My heart swells with pride knowing that in the ASEAN region, our country’s publicly listed corporations are making huge strides in corporate governance.

This is an opportune time to commend Chairperson Teresita Herbosa and the Securities and Exchange Commission for its fierce determination to improve the country’s corporate governance regime and to enable the Philippines to cope up with the forthcoming ASEAN economic integration. 

This evening, it is my honor and privilege to witness the launching of the Corporate Governance Blueprint for my country. This is the Security and Exchange Commission’s Corporate Governance roadmap for the next 5 years. I am confident that with this roadmap, our country will have an even stronger corporate governance regime. 

The pursuit of corporate governance is not for those with a faint heart. It requires nerves of steel and solid rock determination. 

If you recall, during the first SONA of President Benigno S. Aquino in 2010, he cited the excesses of the GOCCs, as in the case of the MWSS. I found it deplorable that GOCCs, or the state-owned enterprises posted a P3.46 trillion in liabilities, thus, placing a huge financial burden on the shoulders of the national government. And even more appalling were the extravagant allowances, questionable incentives and retirement benefits of GOCCs. 

It is lamentable that huge amount of money went to mismanaged and unproductive GOCCs. That money could have been spent for social services such as school buildings, hospitals, and scholarships for the poor but deserving students or even for the rehabilitation of areas damaged by natural or man-made calamities. 

In response, and on our own initiative, and with the help of ICD, Jess Estanislao’s group, we wrote and worked on the enactment of the GOCC Governance Act of 2011. The law is a major reform measure as state owned enterprises that were once milking cows of unscrupulous government officials and employees have now become instruments of national progress. 

Last year, 49 GOCCs in the government, the 49 of them remitted a total of P36.85 billion to the national coffers. In 2013, contributions were at P32.21 billion. Note that in 2010, only P12 billion was the programmed revenue from these government-owned and controlled corporations. In other words, in a short term of about four years, we tripled the income and contribution of the state-owned enterprises to the national coffers. 

Today, four years after the GOCC Governance Act of 2011, the law has been cited by credit rating agencies as a landmark piece of legislation that instills discipline among state-owned enterprises. 

With this law, we manifested the Philippine government's sincerity and commitment to improve corporate governance in the public sector. At least, I can boast that the public sector beat the private sector by four years insofar as corporate governance is concerned. 

Five years ago, President Benigno S. Aquino was elected on the platform of good governance. I threw my complete and total support to the President’s “daang matuwid” as I believe that this is the path that will propel our country to greater economic and social heights. 

Today, we can rightfully and collectively say that   the Aquino government has made huge inroads in the field of good governance. This evening, let us celebrate what we have achieved even as we build on our gains and continue traversing the path of good governance. 

Let me therefore again congratulate the Securities and Exchange Commission Chairperson Tess Herbosa on this occasion, and we assure you of our support in Congress of the initiatives that you may want to take in terms of good governance in the private sector.  

Thank you very much. ###