Tuesday, July 15, 2014

DAP: Separation of Powers and Power of the Purse

I spent a substantial portion of my weekend reading the Supreme Court Decision on DAP penned by Justice Lucas Bersamin as well as the opinions of some of the other SC Justices. I also read views of respected legal scholars and the articles of smart investigative reporter Raissa Robles.  I woke up early so as not to miss the address of President Benigno Aquino III as he explained his administration’s position on the matter.

His explanation to the people sounded clear and convincing as he spoke using the country’s national language, Pilipino. He said his office decided to file a motion for reconsideration.

Will it prosper?  Brilliant lawyer and professor Rene Saguisag thinks that it is “legally tenable and defensible”.  But convincing 13 or the majority of the Supreme Court Justices to reverse their views will be hard. The same Supreme Court earlier declared the PDAF as unconstitutional.  It reversed previous Supreme Court rulings on PDAF or the Pork Barrel System.
The Supreme Court did NOT declare PNoy’s Disbursement Acceleration Program (DAP) unconstitutional. It only considered certain parts, “acts and practices under the Disbursement Acceleration Program (DAP), National Budget Circular No. 541 and related executive issuances unconstitutional for violating Section 25(5), Article VI of the 1987 Constitution and the doctrine of separation of powers, such as:
(a) The withdrawal of unobligated allotments from the implementing agencies, and the declaration of the withdrawn unobligated allotments and unreleased appropriations as savings prior to the end of the fiscal year and without complying with the statutory definition of savings contained in the General Appropriations Acts;
(b) The cross-border transfers of the savings of the Executive to augment the appropriations of other offices outside the Executive; 
(c) The funding of projects, activities and programs that were not covered by any appropriation in the General Appropriations Acts.
The Court further declared void the use of unprogrammed funds despite the absence of a certification by the National Treasurer that the revenue collections exceeded the revenue targets for non-compliance with the conditions provided in the relevant General Appropriations Acts (GAAs).”
In short, as far as the Justices are concerned, all other parts, acts and practices that DO NOT fall under any of the four, are CONSTITUTIONAL.
In fact it was ruled “The DAP is not an appropriation measure and does not contravene Section 29(1), Article VI of the Constitution. The President, in keeping with his duty to faithfully execute the laws, had sufficient discretion during the execution of the budget to adapt the budget to changes in the country’s economic situation. He could adopt a plan like the DAP for the purpose. He could pool the savings and identify the PAPs to be funded under the DAP. The pooling of savings pursuant to the DAP, and the identification of the PAPs to be funded under the DAP did not involve appropriation in the strict sense because the money had been already set apart from the public treasury by Congress through the GAAs. In such actions, the Executive did not usurp the power vested in Congress under Section 29(1), Article VI of the Constitution [that no money shall be paid out of the Treasury except in pursuance of an appropriation made by law.” (IBP Makati Continuing Legal Education)
The Supreme Court says that Section 25 (5) Article VI of the 1987 Constitution and the doctrine of Separation of Powers were violated.
I will deal with the Doctrine of Separation of Powers in this issue. I will discuss my views on the violation of Section 25 (5) Article VI of the Constitution in Part 2 of my column.
Doctrine of Separation of Powers – Power of the Purse
Section 1, Article II of the 1987 Constitution says, “The Philippines is a democratic and republican State. Sovereignty resides in the people and all government authority emanates from them.”


The sovereign people elect the President, the members of Congress, and local officials for their national and local interests. Their will and desires are expressed through the elected officials. 


In national governance, both the President and Congress are the political departments. The Judiciary do not get elected and are therefore, not expected to express the people’s desires. Members of the Judiciary are appointed by the President in order to interpret the laws taking into consideration the original and legislative intent of the source – presumably the people.
Although the powers of Congress and the President should be separate, both are expected to work together for the benefit of their BOSSES – the people. The fact is, their powers really complement each other to achieve a government of the people, by the people, and for the people.
The Power of the Purse should be a legislative power separated distinctly from Presidential powers. In fact, for so many years, the Supreme Court used it as a basis for declaring PDAF or pork barrel as constitutional. It ruled, “It was a legitimate exercise of the Power of the Purse."
This was more of a myth than reality. 
Let us consider the National Government Budgeting process as provided for in BOOK VI of the Administrative Code of 1987.
1.    The Budget Preparation phase is done by the Executive Department.
2.    The Budget Authorization or Legislation phase is supposed to be done by Congress. But constitutionally, the latter cannot increase the budget submitted by the Executive. The General Appropriations bill passed by Congress does not become law unless signed by or allowed to be so by the President.  In fact, the latter even has the power to veto the entire appropriations bill, line items or inappropriate provisions. It takes 2/3 votes to override his veto. The President’s vote is equivalent to 2/3 minus 1 of the total votes in the House and the Senate voting separately. The President can hasten the legislative process by certifying a desired measure as urgent.
3.    The Budget Execution phase is, of course, all-executive.
4.    Then the Budget Accountability that happens alongside with Budget Execution is obviously non-legislative.

Section 25 (5) Article VI of the 1987 Constitution, together with Sections 38, 39, and 49 of Chapter 5 of the Administrative Code actually confirm that the Power of the Purse as a separate legislative power is more of a myth.  Section 38 empowers the President to suspend expenditures of appropriations whenever in his judgment the public interest so requires. Section 39 authorizes the President to use savings in appropriations to cover deficits. Section 49 gives the President authority to use savings for certain purposes that include: “priority activities that will promote the economic well-being of the nation, including food production, agrarian reform, energy development, disaster relief, and rehabilitation; and repair, improvement and renovation of government buildings and infrastructure and other capital assets damaged by natural calamities.”
Former National Treasurer Leonor Magtolis Briones, a perennial critic of PNoy even confirms this reality in a meeting with Congressmen.  Congress does not really have the Power of the Purse. It is a myth!

So, why accuse the President for encroaching upon a power that he actually possesses under the Constitution, the Administrative Code, and the General Appropriations Acts? Why focus on the separation rather than the complementing of powers for the benefit of the sovereign people? 

When the President transfers savings to COA in order to purchase computers and to improve auditing efficiency, he empowers the agency not usurps its power.  When the President transfers savings to Congress to complete its eLibary project, thus improving its digital infrastructure, he empowers legislators to access data and knowledge, not encroaches upon their powers.

Reviewing the doctrine of Separation of Powers as applied to the DAP case would be a wise move!

Friday, July 11, 2014

DR. ELLEN CARAG: A Loving Wife, A Superior Mother, A Community Leader, An Excellent Counselor and A Freedom Fighter


Two weeks ago, Tina Manglapus Maynigo, Ria Manglapus and I traveled to Stafford, Virginia amidst heavy traffic to attend the "Healing Mass" for a longtime friend Dr. Ellen Carag.  During the Mass, she offered prayers for my recently departed sister Mila Maynigo Denton Goldberg who died on May 26, 2014. 
Ellen was diagnosed with pancreatic cancer.  She was convinced as I was that she would live much longer. Tina and I know of friends who indeed enjoyed years more and were able to do the things that they always wanted to do.  There are also enough "precedents" showing the miraculous recovery of seemingly incurable sick people performed not only by Jesus but also by Saints and priests.

After the Mass, Ellen asked us (including Tina and Ria) to join her for a picture-taking. She wanted me to sit beside her as she was telling me about her foundation which is now led by her daughter Abigail.  We did not get to discuss the details but she requested me to help. Deferring further discussions until we attend the next Healing Mass which was to be held on her birthday, July 17, 2014, we said goodbye.
 
Two days ago we heard the sad news that she passed away joining our Lord in Heaven. Last night, Tina, and I joined other friends of Ellen to say prayers (Rosary and Novena) for her soul. It was held at the residence of Judy Francia Reyes and Wally Reyes. Judy led the prayers. Like the late Ellen, Judy offered prayers for my sister Mila and requested others to do the same. I really appreciated the gesture.

There are many reasons why Ellen Carag will forever be immortalized not only in our conscious minds but also in our endearing hearts. First, with some assistance from her husband Vic, she raised great, beautiful, and smart children. Second, she was a loyal, strong, and courageous supportive wife. Third, she was a freedom fighter risking her life for her children's future and her countrymen who were suffering from the evils of a dictatorship. Fourth, she was an effective community leader who cared for others especially the elderly, the uninsured, and those who have less in life.

Major Vic Carag was one of the first three military officers who defected from the Marcos dictatorship. I remember him standing before the halls of Congress as he and the other two announced their defection to join the Movement for a Free Philippines led by Former Senator and Foreign Affairs Secretary Raul S. Manglapus. This was in 1984 when Marcos was still in full control of the military and the country.  In 1986 then General Fidel Ramos and Defense Secretary Enrile defected because Marcos and General Ver already ordered their men to go after the former. They had no choice. The people at EDSA saved them.

Major Carag and company defected because they believed in the cause of freedom and democracy. Vic, more particularly, sourced his moral courage, strong convictions, and fearless commitment from his loving wife, Ellen. We saw this in the challenges and uncertainties facing the day-to-day lives of exiles in the United States during that period. Unperturbed, Ellen led the way; her family followed, and undoubtedly earned a resounding victory.  In this victory, she carried her community.

I always knew that Dr. Ellen Carag cared for people. You could see it in her undying devotion to her husband Vic, her children, patients, relatives, and to the community she lived in.
I was not surprised that she started the ASSOCIATION OF AMERICAN COUNSELORS ON ETHNIC ELDERCARE SERVICES (AACEES), INC. She was always a passionate advocate for services benefiting the elderly, especially Filipino veterans of  World War II.

Instead of flowers, Tina and I will be sending a donation to AACEES.

DR. ELLEN CARAG: A Loving Wife, A Superior Mother, An Effective Doctor, An Excellent Counselor, A Community Leader, and A Freedom Fighter with Strong Moral Convictions.  She helped move not only human hearts but human minds; not only human minds but communities; not only communities but a whole nation.

REST IN PEACE!

Tuesday, July 8, 2014

Porking the DAP

My favorite law professor Justice Solidum once told our class, “The law is what the Supreme Court says is the law. In this class, I am the Supreme Court. Whatever I say is final and non-appealable.”
In a recent decision, the Supreme Court declared “the following acts and practices under the Disbursement Acceleration Program (DAP), National Budget Circular N0. 541 and related issuances UNCONSTITUTIONAL for being in violation of Section 25 (5), Article VI of the 1987 Constitution and the doctrine of separation of powers, namely:
(a) The withdrawal of unobligated allotments from the implementing agencies, and the declaration of the withdrawn unobligated allotments and unreleased appropriations as saving prior to the end of the fiscal year and without complying with the statutory definition of savings contained in the General Appropriations Act;
(b) The cross-border transfers of the savings of the Executive to augment the appropriations of other offices outside the Executive; and
(c) The funding of projects, activities and programs that were not covered in the General Appropriations Act.”
The Court further declared as “VOID the use of unprogrammed funds despite the despite the absence of a certification by the National Treasurer that the revenue collections exceeded the revenue targets for non-compliance with the conditions provided in the relevant General Appropriations Acts.”
The voting was unanimous (13-0) with 1 abstention.  Unless the Court reverses itself upon a motion for reconsideration by the respondents, it is now the law of the land. The Supreme Court says so!
Will a motion for reconsideration prosper?  The stated Constitutional and legal basis for DAP are Section 25 (5), Article VI of the 1987 Constitution; Section 49, Chapter 5, Book VI of the 1987 Administrative Code (Executive Order No. 292), Authority to Use Savings for Certain Purposes; Section 38, Chapter 5, Book VI of the 1987 Administrative Code (Executive Order No. 292) Suspension of Expenditure of Appropriations; and the General Provisions on the Use of Savings, General Appropriations Acts for Fiscal Years 2011, 2012, & 2013.

Some legal experts claim that the Justices in their judicial analysis and decision ignored Section 49 of the Administrative Code. Because if they did consider it, they would have realized that PNoy and Secretary Abad were in fact, empowered and therefore justified in conceiving DAP.
Prominent in the discussions by the Justices and other Constitutional experts is the rule on accountability.  Former Chief Justice Art Panganiban explained it simply for laymen:
“As a rule, an unconstitutional “act or practice” is void and cannot give rise to any right or obligation. However, the Court held that the exception to this rule, the old “doctrine of operative fact,” should be applied “in the implementation of the DAP.” (p.87) 
Under this doctrine, acts done in good faith pursuant to a law or executive act that is later declared unconstitutional would remain valid and enforceable. It also applies when the nullification of such acts would result in an injustice. In short, unconstitutionality has prospective effects only. 
Example: A bridge is constructed from illegally augmented funds. The government officials who supervised in good faith the construction cannot be forced to reimburse the government. Neither may injustice be heaped on suppliers of construction materials by refusing to pay them.”
Of course, it is a different story if lawmakers who were allotted DAP funds for projects that they themselves are empowered to identify, use it instead for their personal gain.  It would be like the Pork Barrel Scam all over again.

In fact, per news reports, “principal whistle-blowers Benhur Luy and Merlina SuƱas are ready to execute affidavits detailing their knowledge of how five senators’ DAP allotments ended up in the fake nongovernment organizations (NGOs) of alleged pork barrel scam mastermind Janet Lim-Napoles.”

Their lawyer, Raji Mendoza said that “The affidavits will show that the same methods in the pork barrel scam was also used in the DAP funds of the senators,”

The five Senators that they allege to be involved are: Senators Jinggoy Estrada, Bong Revilla, Juan Ponce Enrile, Ferdinand Marcos, Jr. and Tito Sotto.  As expected, they are denying everything even alleging that their signatures were forged.

The Ombudsman, the Department of Justice (DOJ), and the National Bureau of Investigation (NBI) have supposedly started an investigation regarding the misappropriation of DAP funds.

Being a lifetime member of the Integrated Bar of the Philippines (IBP), I am very glad to know of the growing independence of the Supreme Court.  I always had the impression based on what my lawyer-friends tell me that we had a very corrupt judiciary – from the lowest to the highest courts.  But the impression is changing at least in the highest tribunal. 

It would even be better if the current Supreme Court not only shows independence but also a greater sense of wisdom and justice by DISMISSING Sandiganbayan Justice Gregory Ong.  Per investigation ordered by the Supreme Court, Ong was found guilty of accepting a bribe to acquit Napoles in a case involving substandard Kevlar helmets for the military.

People, including my barber, do not understand the hesitance!




Tuesday, July 1, 2014

Pork Barrel Scam and Philippine Presidential Politics 2016


Pork Barrel Scam

Senators Jinggoy Estrada and Bong Revilla, as well as Janet Napoles have been charged with Plunder before the Sandiganbayan.



Sandiganbayan has issued Warrants of Arrest to the three; correspondingly, they have been arrested and now detained.

Revilla complained of heat, and is not appreciative of rats and cockroaches keeping him company in his jail room.  Estrada registered no complaints so far.

The Ombudsman has filed the criminal information for Plunder against Senator Enrile before the Sandiganbayan but the latter has not issued a Warrant of Arrest.  If ever arrested, it looks like due consideration will be given to his age and health.

The Special Prosecutors tried to amend the criminal information filed against the above accused, allegedly for clarity – meaning the public officials were the principals with the private individuals conspiring with them.  But some think that this was being done to portray Napoles as being “not the most guilty” and could therefore become a “state witness” if need be.



The Special Prosecutors withdrew the proposed amendments.  Otherwise, it would have the consequence of also withdrawing the warrants, the arrests, and correspondingly, the need to release the accused Plunderers.  This would further delay the trial.

I told my barber that whether the criminal information against each of the accused is amended or not, makes no difference.  There was conspiracy to commit Plunder through the acts defined by law.  Napoles and the Senators are alleged to have been co-principals by direct participation fulfilling their respective roles in the commission of the crime. 

The next move is to get the Senators suspended as mandated by law. It should happen very soon!



My barber is suggesting that forfeiture proceedings will have to start soon too!  These accused Plunderers are holding and/or hiding so much of the people’s money.
***********************  
Philippine Presidential Politics



Vice President Binay is definitely running for President. Bong Revilla said he might while Senator Cayetano has been talking and acting like he is already running. Senator Jinggoy Estrada is considering to run for Vice-President under Binay.

The Liberal Party is pushing for DILG Secretary Mar Roxas to run under its banner.



I told my barber that eventually, it would still be PNoy’s choice.  Whoever he anoints becomes the next President of the Philippines.  The question is, who?

In the 2013 Senatorial, Congressional, and Local elections, the Filipino people gave Team PNoy or the “Daang Matuwid” Program a mandate by trouncing the opposition.  Based on the results, Team PNoy obtained its greatest mandate in the following 4 regions as ranked:
1.             Visayan Island
2.             Bicol
3.             Mindanao
4.             Central Luzon
My post election analysis was that the Visayan region deserves to be source of the next President.  Since 1898, the Philippines has had only 3 Presidents coming from the Visayas - OsmeƱa, Roxas, and Garcia. The rest came from Luzon. In fact, Garcia was really a natural born Ilocano because his parents were from the province of Abra. 


It should be time for a President from the Visayas.  He and the people in the region will definitely push for the “Daan Matuwid” Agenda.  Mar Roxas who is from Capiz is the favorite but Grace Poe who was born in Iloilo is the underdog.



If none emerges from the Visayas by the time PNoy has to anoint, he could choose somebody from Bicol.  Among the personalities that could be considered in any of the top two positions are Senator Chiz Escudero, Congresswoman Robredo, and DOJ Secretary Leila de Lima.  No President has ever come from the region historically.



Mindanao could also provide PNoy a couple of choices namely:  Senators Teofisto Guingona, Jr. and Aquilino Pimentel III.  



Except for Bam Aquino, I currently do not see anybody emerging from Central Luzon. Besides, right now I do not recommend anybody from there.



There are reservations with respect to the inexperience of Senator Poe, Representative Robredo, and Secretary de Lima.  Wasn’t the opponent of Ferdinand Marcos an inexperienced plain housewife named Cory Aquino? 



An idea came up only recently.  PNoy could run as the Vice-Presidential teammate of his anointed Presidential candidate.  This could guarantee victory for both, continuity of the “Daan Matuwid” agenda, and a virtual co-presidency.



If there is no legal impediment to this idea, why not?