sc decision to dap

8/12/2019 SC Decision to DAP

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ORAL ARGUMENTS. The Supreme Court hears oral arguments on the constitutionality of theDisbursement Acceleration Program. File photo by LeAnne Jazul/Rappler

MANILA, Philippines(3rd UPDATE) The Supreme Court (SC) on Tuesday, July 1,

declared 3 specific acts associated with the administration-backed Disbursement

Acceleration Program (DAP) unconstitutional.

The High Tribunal declared the following schemes under the DAP unconstitutional:

The withdrawal of unobligated allotments from the implementing agencies andthe declaration of the withdrawn unobligated allotments and unreleased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 Act

Cross-border transfers of savings of the executive department to offices outsidethe executive department

Funding of projects, activities, programs not covered by appropriations in theGeneral Appropriations Act

Watch this report below.

SC spokesman Theodore Te in a press briefing, said, "The court also declares void the

use of unprogrammed funds despite the absence of a certification by the National

Treasurer that the revenue collections exceeded the revenue targets or non-compliance

with the conditions provided in the relevant General Appropriations Act."

In effect, the Supreme Court declared as unconstitutional the creation of savings prior to

the end of the fiscal year and the withdrawal of these funds for implementing agencies;

the cross-border transfers of the savings from one department to another; and the

allotment of funds for projects, activities, and programs not outlined in the General

Appropriations Act.

The petitioners alleged that the 3 acts struck down by the High Court essentially voidedthe program. 9 petitioners assailed DAP before the SC in late 2013. But other court

insiders said it was an "over-simplification."

The justices of the High Court voted 13-0-1, excluding retired justice Roberto Abad.*

Justice Teresita de Castro inhibited from the voting. Justice Presbitero Velasco was on

official leave but gave his vote to Chief Justice Maria Lourdes Sereno.


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The court has yet to release its decision.

Exact accountability

Anti-DAP groups however said the SC decision falls short of holding the administration

officials responsible for the DAP accountable for implementing an illegal program.

"Ang malaking hamon ngayon para sa korte at para sa atin ay yung pagpapanagot.

Kung illegal ang DAP, kung merong maling ginawa, hindi naman uubra na walang

mananagot dito," said Bayan Secretary-General Nato Reyes.

(The big challenge today for the court and for us is holding [officials] accountable. If the

DAP is illegal, if there is something wrong done, it cannot be that no one will be

accountable for it.)

DAP is a program initiated in 2011 to transfer savings and unused funds from slow-

disbursing programs of one department to fast-moving projects of another.

It became controversial after the now-indicted plunderer and opposition senator Jose

"Jinggoy" Estrada delivered aprivilege speechalleging that huge sums through the

program were distributed to senators for the impeachment of former Chief Justice

Renato Corona.

Earlier, on June 10, the SC was expected to vote on the constitutionality of DAP but

justicesdeferred voting.

Necessary

President Benigno Aquino III and Department of Budget and Management (DBM)

Secretary Butch Abad have defended the initiative, saying it was necessary to fast-track

growth in the economy.

During earlier oral arguments, SC justices already pointed out that the cross-border

transfer of funds from one branch of government to another was not permitted by the

Constitution.

Justice Antonio Carpio was categorical.Rappler columnist Marites Vitugwrote earlier

that savings, as defined by the General Appropriations Act, are excess funds from

completed projects, discontinued projects, and those from finally abandoned projects.
http://www.rappler.com/nation/39830-jinggoy-speech-drilon-brokered-corona-convictionhttp://www.rappler.com/nation/39830-jinggoy-speech-drilon-brokered-corona-convictionhttp://www.rappler.com/nation/39830-jinggoy-speech-drilon-brokered-corona-convictionhttp://www.rappler.com/nation/60162-supreme-court-disbursement-acceleration-programhttp://www.rappler.com/nation/60162-supreme-court-disbursement-acceleration-programhttp://www.rappler.com/nation/60162-supreme-court-disbursement-acceleration-programhttp://www.rappler.com/thought-leaders/44172-tough-questioning-dap-courthttp://www.rappler.com/thought-leaders/44172-tough-questioning-dap-courthttp://www.rappler.com/thought-leaders/44172-tough-questioning-dap-courthttp://www.rappler.com/thought-leaders/44172-tough-questioning-dap-courthttp://www.rappler.com/nation/60162-supreme-court-disbursement-acceleration-programhttp://www.rappler.com/nation/39830-jinggoy-speech-drilon-brokered-corona-conviction


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But the life span of operating expenses and capital outlay, as prescribed by the GAA, is

two years, Carpio had pointed out.

This means that the government can only abandon an infrastructure project when the

second year is about to end. Definitely, according to Carpio, the budget departmentcannot declare these as savings in the first year of the GAA.

The absence of written authority from the President, in 2011 and 2013, to realign funds

was worse, Vitug, quoting Carpio, wrote. This cannot be delegated to the executive

secretary, he pointed out. The budget circular on DAP was issued in 2012 and it

regularized the disbursements in 2011.

Petitioners also further argued that it gave the executive department power to legislate

fund allocations, which is within the duties of the legislative department when it passes

the General Appropriations Act.

The administration, they said, went beyond its jurisdiction and overstepped its bounds.

It can be recalled that a similar argument was used to declare void the Priority

Development Assistance Fund (PDAF), a lump sum distributed to lawmakers to fund

projects at their discretion. In declaring its unconstitutionality, the SC said the PDAF

gave the legislative branch powers to implement programs post-enactment.

Rappler.com

*Editor's Note: The Supreme Court corrected its previous count of 14-0 to 13-0-1

http://sc.judiciary.gov.ph/pdf/web/viewer.html?file=/jurisprudence/2014/july2014/209287.pdf

The OSG posits, however, that no law was necessary for the adoption and implementation of the DAP

because of its being neither a fund nor an appropriation, but a program or an administrative system of

prioritizing spending; and that the adoption of the DAP was by virtue of the authority of the President as

the Chief Executive to ensure that laws were faithfully executed.
http://sc.judiciary.gov.ph/pdf/web/viewer.html?file=/jurisprudence/2014/july2014/209287.pdfhttp://sc.judiciary.gov.ph/pdf/web/viewer.html?file=/jurisprudence/2014/july2014/209287.pdfhttp://sc.judiciary.gov.ph/pdf/web/viewer.html?file=/jurisprudence/2014/july2014/209287.pdf

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