Metro Manila (CNN Philippines) — Budget Secretary Florencio “Butch” Abad and Undersecretary Mario Relampagos are facing preliminary investigation for technical malversation and administrative complaints in relation to the Disbursement Acceleration Program (DAP).
The Field Investigation Office (FIO) of the Ombudsman on Wednesday (September 29) disclosed this following a probe into the use of DAP funds from 2011 to 2012.
Based on the report of the investigators, Abad and Relampagos authorized the DAP sourced from pooled savings as “a plan to boost disbursements” and “to jump-start the implementation” of the government’s expenditure program.
The anti-graft body found irregularities in the cross-border transfer of funds to the House of Representatives and Commission on Audit (COA) during the said period.
Some P250 million from pooled savings were released to the House of Representatives for the construction of its legislative library and archive building/congressional e-library – a project that, according to the report, didn’t receive the stamp of approval from President Benigno Aquino III.
COA, meanwhile, got P143.7 million for the augmentation of its IT infrastructure program and hiring of additional litigation experts.
According to investigators, all memoranda and issuances involving DAP were approved by Abad, while Relampagos signed the corresponding Special Allotment Release Orders (SARO).
Abad firm, says DAP legal
Abad said in a statement that he would cooperate, but he clarified some terms in connection with the investigation.
“The DBM will of course cooperate with the Office of the Ombudsman in the course of their investigation,” the Abad said. “At the same time, we wish to clarify certain terms relevant to the investigation, particularly those that may invite specific public attention.”
Abad was referring to “technical malversation,” saying it “does not suggest that the individuals in question committed acts of graft or corruption.”
“Nor does the investigation imply that that these individuals used public funds for their personal gain or benefit,” Abad added.
He stressed that, while the documents showed irregularities, the Supreme Court’s final decision did not declare the program unconstitutional.
“The positive impact of DAP on the Philippines’ economy – in line with the program’s purpose – must not be overlooked,”he said.
“The Supreme Court itself observed that DAP was instrumental in accelerating public spending, and in such a manner that allowed the country to achieve significant economic progress.”
CNN Philippines’ AC Nicholls contributed to this report.
