seventeenth congress of the republic of ….pdf · republic of the philippines second regular...

SEVENTEENTH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES Second Regular Session SENATE P.S. Res. No. rr 9 f'lrir- jt ( ^8 i/iM - 8 P 7 Introduced by SEN. WIN GATCHALIAN A RESOLUTION DIRECTING THE APPROPRIATE SENATE COMMITTEE TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE RELEASE OF THE MALAMPAYA FUNDS BY THE DEPARTMENT OF BUDGET AND MANAGEMENT WITHOUT COMPLETE DOCUMENTARY REQUIREMENTS IN VIOLATION OF EXISTING LAWS AND RULES AND REGULATIONS AS SPECIFIED IN THE COMMISSION ON AUDIT’S SPECIAL REPORT NO. 2017-04 WHEREAS, Presidential Decree No. 910 created a Special Fund from all fees, revenue, and receipts from any and all sources as well as the government share representing royalties, rentals, and production share on service contracts and similar payments on the exploration, development, and exploitation of energy sources;1 WHEREAS, the Special Fund, also known as Special Account in the General Fund (SAGF) 151, collected by the Department of Energy (DOE) and thereafter remitted to and managed by the Bureau of Treasury, shall be used to finance energy resource development and exploitation programs;2 WHEREAS, DOE records show the total remittance to the government from Service Contract (SC) 38 or the Camago-Malampaya Reservoir to SAGF 151 amounts to Php 173.280 billion for operating dates starting January 2002 until 30 June 2013; WHEREAS, the Department of Budget and Management (DBM) was authorized in 2007 to release the funds collected from SC 38, otherwise known as the Malampaya Funds, to implementing agencies upon the endorsement and submission by the DOE or the Philippine National Oil Corporation Exploration Corporation of documents that include but are not limited to a directive by the Office of the President or written request for funding of designated projects from the province of Palawan, the Palawan congressional districts, or Puerto Princesa City;3 WHEREAS, DBM, DOE, and the Department of Finance, in their implementing guidelines for the release of funds chargeable against the Malampaya Funds, stated that all requests for funding be submitted to DOE who is thereafter charged to evaluate the request and submit the evaluation with supporting documents to DBM;4 1 Section 8, Presidential Decree (P.D.) No. 910 (1976). 2 Belgica et. al. vs. Ochoa, et. al.. G.R. Nos. 208566, 19 November 2013. 3 Sec. 1, Executive Order No. 683 (2007). 4 DBM-DOE-DOF Joint Circular No.3, 30 January 2008.

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Page 1: SEVENTEENTH CONGRESS OF THE REPUBLIC OF ….pdf · REPUBLIC OF THE PHILIPPINES Second Regular Session ... f'lrir- jt (^8 i/iM -8 P 7 Introduced by SEN. WIN GATCHALIAN ... and exploitation

SEVENTEENTH CONGRESS OF THE REPUBLIC OF THE PHILIPPINESSecond Regular Session

SENATE

P.S. R es. No. rr 9f ' l r i r - j t (

^8 i/iM - 8 P 7

In tro d u c e d by SEN. WIN GATCHALIAN

A RESOLUTION DIRECTING THE APPROPRIATE SENATE COMMITTEE TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION,

ON THE RELEASE OF THE MALAMPAYA FUNDS BY THE DEPARTMENT OF BUDGET AND MANAGEMENT WITHOUT

COMPLETE DOCUMENTARY REQUIREMENTS IN VIOLATION OF EXISTING LAWS AND RULES AND REGULATIONS AS SPECIFIED IN

THE COMMISSION ON AUDIT’S SPECIAL REPORT NO. 2 0 1 7 -0 4

WHEREAS, Presidential Decree No. 910 created a Special F und from all fees, revenue, and receipts from any and all sources a s well a s the governm ent share rep resen ting royalties, ren ta ls , and production share on service co n trac ts and sim ilar paym ents on the exploration, developm ent, and exploitation of energy so u rc e s ;1

WHEREAS, the Special Fund, also known a s Special A ccount in the G eneral F und (SAGF) 151, collected by the D epartm ent of Energy (DOE) and thereafter rem itted to an d m anaged by the B ureau of T reasury, shall be u sed to finance energy resource developm ent an d exploitation program s;2

WHEREAS, DOE records show the total rem ittance to the governm ent from Service C on trac t (SC) 38 or the Cam ago-M alam paya Reservoir to SAGF 151 a m o u n ts to Php 173.280 billion for operating d a tes sta rting J a n u a ry 2002 un til 30 Ju n e 2013;

WHEREAS, the D epartm ent of Budget and M anagem ent (DBM) w as au thorized in 2007 to release the funds collected from SC 38, otherw ise known a s the M alam paya F unds, to im plem enting agencies upon the endorsem ent and subm ission by the DOE or the Philippine National Oil C orporation Exploration C orporation of docum ents th a t include b u t are no t lim ited to a directive by the Office of the President or w ritten request for funding of designated projects from the province of Palaw an, the Palaw an congressional d istric ts, or Puerto Princesa City;3

WHEREAS, DBM, DOE, and the D epartm ent of F inance, in their im plem enting guidelines for the release of funds chargeable again st the M alam paya Funds, s ta ted th a t all requests for funding be subm itted to DOE who is thereafter charged to evaluate the request and subm it the evaluation w ith supporting docum ents to DBM;4

1 Section 8, Presidential Decree (P.D.) No. 910 (1976).2 Belgica et. al. vs. Ochoa, et. al.. G.R. Nos. 208566, 19 November 2013.3 Sec. 1, Executive O rder No. 683 (2007).4 DBM-DOE-DOF Jo in t C ircu lar No.3, 30 Ja n u a ry 2008.