MANILA, Philippines – “Where did the fund go and who authorized the disbursements?”
Bayan Muna party-list Rep. Carlos Isagani Zarate asked the Department of Energy (DOE) to answer these questions in relation to the nearly P21 billion-fund from the Malampaya Gas Project that was already spent but for unknown purposes as records from the Commission on Audit (COA) show that the huge sum had already been disbursed through SAROs or special allotment release orders that were however “unrecorded” as of July 31, 2017.
SAROs are documents issued by the Department of Budget and Management (DBM) that trigger the release of funds for lump sum items.
According to the DBM, SAROs cover “a specific authority issued to identified agencies to incur obligations not exceeding a given amount during a specified period for the purpose indicated.”
“It shall cover expenditures the release of which is subject to compliance with specific laws or regulations, or is subject to separate approval or clearance by competent authority.”
But Zarate said that because it is stated in COA records that the SAROs were unrecorded, the details on who or what agencies spent the fund totaling P20,950,715,710 and when and for what purposes could not be determined.
“We hope that the DOE could immediately explain this and the funds should be used for its original purpose. As it is, it seems that Congress should exercise its oversight powers to look into this latest Malampaya mess,” the lawmaker said on Thursday when the House Committee on Appropriations conducted a briefing on the proposed 2018 budget of the DOE amounting to P1.26 billion.
“What happened to the P21-billion Malampaya fund and why is it only now that this has surfaced?” he asked.
DOE Secretary Alfonso Cusi explained to Zarate that his agency “is not the custodian of the fund” because the department “just collect(s) and remit(s)” the share of the government from the gas project.
But Zarate said the DOE should not just let pass the matter without investigating because huge funds were involved.
The Malampaya Gas Project, which started in 2002, involves the extraction of natural gas from the waters off Palawan province.
The government’s share of the income from the operation of the Malampaya gas wells was supposed to be used for energy projects. However, this was expanded to finance non-energy related programs authorized by the Office of the President during the Arroyo admnistration.
In 2009, the P900-million portion of the Malampaya fund was used to supposedly help victims of Tropical Storm “Ondoy” and Typhoon “Pepeng.”
The money, however, did not reach its beneficiaries as the fund was allegedly converted to kickbacks and commissions coursed though bogus non-government organizations set up by Janet Lim-Napoles.
In 2013, the Supreme Court ruled that the Malampaya funds should only be used for energy exploitation and development.
According to the Bureau of Treasury, the total amount deposited by the DOE in the Malampaya Fund from 25 March 2002 to 30 September 2013 amounted to P179.338 billion while total SARO releases against the Malampaya Fund during the same period reached P42.050 billion, leaving a balance of P137.288 billion, which is available in the National Treasury.
