sr e p reent a t i s v e plenary proceedings of the 17th … · 2018. 10. 19. · teves, treñas,...

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RESUMPTION OF SESSION At 1:00 p.m., the session was resumed with Deputy Speaker Raneo “Ranie” E. Abu presiding. THE DEPUTY SPEAKER (Rep. Abu). The session is resumed. The Majority Leader is recognized. REP. PALMA. Mr. Speaker, I move that we take up the Additional Reference of Business. THE DEPUTY SPEAKER (Rep. Abu). Is there any objection? (Silence) The Chair hears none; the motion is approved. The Secretary General will please read the Additional Reference of Business. ADDITIONAL REFERENCE OF BUSINESS The Secretary General read the following House Bills and Resolutions on First Reading, Messages from the Senate, and Committee Reports, and the Deputy Speaker made the corresponding references: BILLS ON FIRST READING House Bill No. 8256, entitled: “AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO ROMEO CABRESTANTE SERVANDO UNDER REPUBLIC ACT NO. 8202, TITLED ‘AN ACT GRANTING ROMEO CABRESTANTE SERVANDO, A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE PROVINCE OF PALAWAN’ ” By Representatives Abueg and Acosta TO THE COMMITTEE ON LEGISLATIVE FRANCHISES House Bill No. 8257, entitled: “AN ACT CREATING THE PHILIPPINE BOXING AND COMBAT SPORTS COMMISSION AND PROVIDING FUNDS THEREFOR” By Representatives Pineda, Romero, Salo, Lopez (B.), Montoro, Lacson, Mending, Salon, Lopez (M.L.), Gonzales (A.D.), Bondoc, Bravo (A.), Alvarez (F.), Lopez (C.), Ty, Marquez, Cortuna, Roa-Puno, Ortega (P.), Revilla, Madrona, Martinez, Acop, Mariño, Alejano, Banal, Rodriguez (I.), Belmonte (J.C.), Ramos, Erice, Co, Bataoil, Laogan, Malapitan, Palma, Go (M.), Espina, Lazatin, Tejada, De Vera, Datol, Leachon, Nieto, Gasataya, Paduano, Ferrer J., Garbin, Tinio, Crisologo, Gullas, Velasco- Catera, Calderon, Alvarez (M.), Abellanosa, Garin (S.), Villanueva, Antonio, Del Mar, Yu, Caminero, Nava, Cortes, Lagman, Gonzales (A.P.), Abaya, Noel, Kho, Matugas, Panotes, Herrera-Dy, Collantes, Defensor, Bolilia, Marcoleta, Calixto-Rubiano, Belmonte (F.), Sy-Alvarado, Savellano, Khonghun, Maceda, Teves, Treñas, Ortega (V.N.) and Duavit TO THE COMMITTEE ON GOVERNMENT REORGANIZATIONAND THE COMMITTEE ON GAMES AND AMUSEMENTS House Bill No. 8258, entitled: “AN ACT REORGANIZING THE COMELEC OFFICES” By Representatives Datol, Macapagal-Arroyo and Belmonte (F.) TO THE COMMITTEE ON SUFFRAGE AND ELECTORAL REFORMS House Bill No. 8259, entitled: “AN ACT AMENDING INVESTMENT RESTRICTIONS IN COMMONWEALTH ACT NO. 541, AS AMENDED BY LETTER OF INSTRUCTIONS NO. 630, AND FOR OTHER PURPOSES” By Representative Yap (A.) TO THE COMMITTEE ON TRADE AND INDUSTRY Congressional Record PLENARY PROCEEDINGS OF THE 17 th CONGRESS, THIRD REGULAR SESSION House of Representatives Vol. 2 Thursday, September 20, 2018 No. 22a 1 9 0 7 P H I L I P P I N E S H O U S E O F R E P R E S E N T A T I V E S

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Page 1: SR E P REENT A T I S V E PLENARY PROCEEDINGS OF THE 17th … · 2018. 10. 19. · Teves, Treñas, Ortega (V.N.) and Duavit TO THE COMMITTEE ON GOVERNMENT REORGANIZATION AND THE COMMITTEE

RESUMPTION OF SESSION

At 1:00 p.m., the session was resumed with Deputy Speaker Raneo “Ranie” E. Abu presiding.

THE DEPUTY SPEAKER (Rep. Abu). The session is resumed.

The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, I move that we take up the Additional Reference of Business.

THE DEPUTY SPEAKER (Rep. Abu). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Secretary General will please read the Additional Reference of Business.

ADDITIONAL REFERENCE OF BUSINESS

The Secretary General read the following House Bills and Resolutions on First Reading, Messages from the Senate, and Committee Reports, and the Deputy Speaker made the corresponding references:

BILLS ON FIRST READING

House Bill No. 8256, entitled:“AN ACT RENEWING FOR ANOTHER

T W E N T Y- F I V E ( 2 5 ) Y E A R S T H E FRANCHISE GRANTED TO ROMEO CABRESTANTE SERVANDO UNDER REPUBLIC ACT NO. 8202, TITLED ‘AN ACT GRANTING ROMEO CABRESTANTE S E RVA N D O , A F R A N C H I S E T O CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE PROVINCE OF PALAWAN’ ”

By Representatives Abueg and AcostaTO THE COMMITTEE ON LEGISLATIVE

FRANCHISES

House Bill No. 8257, entitled:“AN ACT CREATING THE PHILIPPINE BOXING

AND COMBAT SPORTS COMMISSION AND PROVIDING FUNDS THEREFOR”

By Representatives Pineda, Romero, Salo, Lopez (B.), Montoro, Lacson, Mending, Salon, Lopez (M.L.), Gonzales (A.D.), Bondoc, Bravo (A.), Alvarez (F.), Lopez (C.), Ty, Marquez, Cortuna, Roa-Puno, Ortega (P.), Revilla, Madrona, Martinez, Acop, Mariño, Alejano, Banal, Rodriguez (I.), Belmonte (J.C.), Ramos, Erice, Co, Bataoil, Laogan, Malapitan, Palma, Go (M.), Espina, Lazatin, Tejada, De Vera, Datol, Leachon, Nieto, Gasataya, Paduano, Ferrer J., Garbin, Tinio, Crisologo, Gullas, Velasco-Catera, Calderon, Alvarez (M.), Abellanosa, Garin (S.), Villanueva, Antonio, Del Mar, Yu, Caminero, Nava, Cortes, Lagman, Gonzales (A.P.), Abaya, Noel, Kho, Matugas, Panotes, Herrera-Dy, Collantes, Defensor, Bolilia, Marcoleta, Calixto-Rubiano, Belmonte (F.), Sy-Alvarado, Savellano, Khonghun, Maceda, Teves, Treñas, Ortega (V.N.) and Duavit

TO THE COMMITTEE ON GOVERNMENT REORGANIZATION AND THE COMMITTEE ON GAMES AND AMUSEMENTS

House Bill No. 8258, entitled:“AN ACT REORGANIZING THE COMELEC

OFFICES”By Representatives Datol, Macapagal-Arroyo and

Belmonte (F.)TO THE COMMITTEE ON SUFFRAGE AND

ELECTORAL REFORMS

House Bill No. 8259, entitled:“AN ACT AMENDING INVESTMENT

RESTRICTIONS IN COMMONWEALTH ACT NO. 541, AS AMENDED BY LETTER OF INSTRUCTIONS NO. 630, AND FOR OTHER PURPOSES”

By Representative Yap (A.)TO THE COMMITTEE ON TRADE AND

INDUSTRY

Congressional RecordPLENARY PROCEEDINGS OF THE 17th CONGRESS, THIRD REGULAR SESSION

House of Representatives

Vol. 2 Thursday, September 20, 2018 No. 22a

1907PHILIPPINES

HOU

SE O

F REPRESENTATIVES

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2 Congressional Record • 17th Congress 3RS v.2 THURSDAY, SEPTEMBER 20, 2018

House Bill No. 8260, entitled:“AN ACT PROVIDING FOR THE MANDATORY

INSTRUCTION OF PHILIPPINE CINEMA A P P R E C I AT I O N I N S E C O N D A RY EDUCATIONAL INSTITUTIONS IN THE COUNTRY AND FOR OTHER PURPOSES”

By Representative ElagoTO THE COMMITTEE ON BASIC EDUCATION

AND CULTURE

RESOLUTIONS

House Resolution No. 2185, entitled:“A RESOLUTION URGING THE DEPARTMENT

OF PUBLIC WORKS AND HIGHWAYS (DPWH) AND THE DEPARTMENT OF TRANSPORTATION (DOTr) TO NOTIFY AND REGULARLY APPRISE METRO MANILA DISTRICT REPRESENTATIVES ON ANY PROPOSED/ONGOING MAJOR/FLAGSHIP GOVERNMENT INFRASTRUCTURE DEVELOPMENTS IN THEIR RESPECTIVE C O N G R E S S I O N A L D I S T R I C T S ”

By Representatives Castelo, Martinez, Calixto-Rubiano, Lopez (M.L.), Tambunting, Biazon, Malapitan, Nieto, Sandoval, Lopez (C.), Banal, Belmonte (F.), Belmonte (J.C.), Vargas, Maceda, Gatchalian, Herrera-Dy, Tugna, Erice, Gonzales (A.P.), Bagatsing, Fernando, Olivarez, Zamora (R.), Cerafica, Quimbo, Eusebio, Calalang, Cayetano, Crisologo, Campos, Del Rosario and Datol

TO THE COMMITTEE ON PUBLIC WORKS AND HIGHWAYS

House Resolution No. 2186, entitled:“RESOLUTION DIRECTING THE HOUSE

COMMITTEE ON HUMAN RIGHTS TO CONDUCT AN INVESTIGATION, IN AID OF LEGISLATION, ON THE KILLING OF SEVEN TAUSUG YOUTH BY ELEMENTS OF THE ARMED FORCES OF THE PHILIPPINES (AFP) IN PATIKUL, SULU”

By Representatives Elago, Zarate, De Jesus, Tinio, Brosas, Castro (F.L.), Casilao, Deloso-Montalla and Sahali

TO THE COMMITTEE ON RULES

House Resolution No. 2187, entitled:“A RESOLUTION EXPRESSING DEEPEST

CONDOLENCES FOR THE PASSING OF MR. ROBERTO FUNG KUAN, FOUNDER OF CHOWKING CHINESE FAST-FOOD CHAIN OF RESTAURANTS, ON SEPTEMBER 15, 2018”

By Representative NietoTO THE COMMITTEE ON RULES

House Resolution No. 2188, entitled:“A RESOLUTION DISBANDING AND/OR

DEACTIVATING ALL LGU-SPONSORED PARA-MILITARY PERSONNEL UNDER THE SPECIAL CAFGU ACTIVE AUXILIARY COMPANY (SCAAC) WITHIN THE AREA OF MINDANAO EFFECTIVE BEGINNING THE START OF FILING OF CERTIFICATE OF CANDIDACY (COC) UNTIL AFTER THE LIFTING OF ELECTION BAN DURING THE 2019 MID-TERM ELECTIONS, AND EVERY ELECTIONS THEREAFTER”

By Representatives Macapagal-Arroyo and Jalosjos

TO THE COMMITTEE ON NATIONAL DEFENSE AND SECURITY

MESSAGES FROM THE SENATE

Message dated September 17, 2018, informing the House of Representatives that the Senate on even date passed Senate Bill No. 1843, entitled:“ A N A C T E S T A B L I S H I N G A N D

INSTITUTIONALIZING THE SEAL OF GOOD LOCAL GOVERNANCE FOR LOCAL GOVERNMENT UNITS, AND ALLOCATING FOR THIS PURPOSE THE SEAL OF GOOD LOCAL GOVERNANCE FUND”

in which it requests the concurrence of the House of Representatives.

T O T H E C O M M I T T E E O N L O C A L GOVERNMENT

Message dated September 17, 2018, informing the House of Representatives that the Senate on even date approved the Conference Committee Report of the Bicameral Conference Committee on the disagreeing provisions of Senate Bill No. 1537 and House Bill No. 5777, entitled:“AN ACT SCALING UP THE NATIONAL

A N D L O C A L H E A L T H A N D NUTRITION PROGRAMS THROUGH A STRENGTHENED INTEGRATED STRATEGY FOR MATERNAL, NEONATAL, CHILD HEALTH AND NUTRITION IN THE FIRST ONE THOUSAND (1,000) DAYS OF LIFE, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES”

TO THE COMMITTEE ON RULES

Message dated September 17, 2018, informing the House of Representatives that the Senate on even

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THURSDAY, SEPTEMBER 20, 2018 17th Congress 3RS v.2 • Congressional Record 3

date passed the following House Bills without amendment:House Bill No. 2483, entitled:“AN ACT DECLARING JULY 4 OF EVERY

YEAR A SPECIAL NONWORKING HOLIDAY IN THE CITY OF CADIZ, PROVINCE OF NEGROS OCCIDENTAL, IN COMMEMORATION OF ITS CHARTER DAY ANNIVERSARY”;

House Bill No. 2097, entitled:“AN ACT DECLARING DECEMBER 2 OF

EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE CITY OF PASAY TO BE KNOWN AS THE ‘FOUNDATION DAY OF PASAY CITY’ ”;

House Bill No. 5172, entitled:“AN ACT DECLARING JUNE 19 OF EVERY

YEAR A SPECIAL NONWORKING HOLIDAY IN THE WHOLE PROVINCE OF LAGUNA IN HONOR OF THE BIRTH ANNIVERSARY OF OUR NATIONAL HERO, DR. JOSE P. RIZAL, TO BE KNOWN AS ‘ARAW NG KAPANGANAKAN NI DR. JOSE P. RIZAL’ ”;

House Bill No. 5641, entitled:“AN ACT DECLARING DECEMBER 1 OF

EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE MUNICIPALITY OF PADRE GARCIA, PROVINCE OF BATANGAS, IN COMMEMORATION OF ITS FOUNDING ANNIVERSARY AND THE ANNUAL ‘KABAKAHAN FESTIVAL’ ”;

House Bill No. 2130, entitled:“AN ACT DECLARING SEPTEMBER 1 OF

EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE MUNICIPALITY OF JASAAN, PROVINCE OF MISAMIS ORIENTAL, IN COMMEMORATION OF ITS FOUNDING ANNIVERSARY, TO BE KNOWN AS ‘ARAW NG JASAAN’ ”;

House Bill No. 5551, entitled:“AN ACT DECLARING SEPTEMBER 2 OF

EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE PROVINCE OF ALBAY, INCLUDING THE CITIES THEREIN, IN COMMEMORATION OF THE BIRTH ANNIVERSARY OF GENERAL SIMEON A. OLA, TO BE KNOWN AS ‘SIMEON OLA DAY’ ”

House Bill No. 2484, entitled:“AN ACT DECLARING JUNE 11 OF EVERY

YEAR A SPECIAL NONWORKING HOLIDAY IN THE CITY OF SAGAY, PROVINCE OF NEGROS OCCIDENTAL, IN COMMEMORATION OF ITS FOUNDATION DAY ANNIVERSARY”;

House Bill No. 2129, entitled:“AN ACT DECLARING JULY 1 OF EVERY YEAR

A SPECIAL NONWORKING HOLIDAY IN THE MUNICIPALITY OF ALUBIJID, PROVINCE OF MISAMIS ORIENTAL, IN COMMEMORATION OF ITS FOUNDING ANNIVERSARY, TO BE KNOWN AS ‘ARAW NG ALUBIJID’ ”;

House Bill No. 3710, entitled:“AN ACT DECLARING JUNE 27 OF EVERY

YEAR A SPECIAL NONWORKING HOLIDAY IN THE CITY OF EL SALVADOR, PROVINCE OF MISAMIS ORIENTAL, IN COMMEMORATION OF ITS CHARTER DAY ANNIVERSARY, TO BE KNOWN AS ‘ARAW NG EL SALVADOR’ ”;

House Bill No. 2131, entitled:“AN ACT DECLARING JULY 22 OF EVERY

YEAR A SPECIAL NONWORKING HOLIDAY IN THE MUNICIPALITY OF CLAVERIA, PROVINCE OF MISAMIS ORIENTAL, IN COMMEMORATION OF ITS FOUNDING ANNIVERSARY, T O B E K N O W N A S ‘ A R AW N G CLAVERIA’ ”;

House Bill No. 2132, entitled:“AN ACT DECLARING JUNE 15 OF EVERY

YEAR A SPECIAL NONWORKING HOLIDAY IN THE MUNICIPALITY OF OPOL, PROVINCE OF MISAMIS ORIENTAL, IN COMMEMORATION OF ITS FOUNDING ANNIVERSARY, TO BE KNOWN AS ‘ARAW NG OPOL’ ”;

House Bill No. 6178, entitled:“AN ACT DECLARING JANUARY 11 OF

EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE PROVINCE OF BATAAN IN COMMEMORATION OF ITS FOUNDING ANNIVERSARY TO BE KNOWN AS ‘BATAAN FOUNDATION DAY’ ”;

House Bill No. 6418, entitled:“AN ACT DECLARING OCTOBER 26 OF

EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE PROVINCE OF CATANDUANES TO BE KNOWN AS THE ‘FOUNDATION DAY OF CATANDUANES’ ”; and

House Bill No. 5563, entitled:“AN ACT DECLARING APRIL 21 OF EVERY

YEAR A SPECIAL NONWORKING HOLIDAY IN THE MUNICIPALITY OF ORANI, PROVINCE OF BATAAN, IN COMMEMORATION OF ITS FOUNDING ANNIVERSARY TO BE KNOWN AS ‘ORANI FOUNDATION DAY’ ”.

TO THE COMMITTEE ON RULES

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4 Congressional Record • 17th Congress 3RS v.2 THURSDAY, SEPTEMBER 20, 2018

Message dated September 18, 2018, informing the House of Representatives that on even date, the Senate designated Senators Risa Hontiveros, Aquilino “Koko” Pimentel III and Win Gatchalian as additional conferees to the Bicameral Conference Committee on the disagreeing votes on House Bill No. 7449, entitled:“AN ACT APPROPRIATING THE SUM OF

ONE BILLION ONE HUNDRED SIXTY-ONE MILLION SEVEN HUNDRED TEN THOUSAND PESOS (P1,161,710,000.00) AS SUPPLEMENTAL APPROPRIATIONS FOR FY 2018 AND FOR OTHER PURPOSES”

TO THE COMMITTEE ON RULES

COMMITTEE REPORTS

Report by the Committee on Legislative Franchises (Committee Report No. 870), re H.B. No. 8264, entitled:“AN ACT RENEWING FOR ANOTHER TWENTY-

FIVE (25) YEARS THE FRANCHISE G R A N T E D TO R A D Y O P I L I P I N O CORPORATION UNDER REPUBLIC ACT NO. 8145, ENTITLED ‘AN ACT GRANTING THE RADYO PILIPINO CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN COMMERCIAL RADIO AND TELEVISION BROADCASTING STATIONS, SATELLITE A N D C A B L E S TAT I O N S I N T H E PHILIPPINES’ ”

recommending its approval in substitution of House Bill No. 8094

Sponsors: Representatives Alvarez (F.), Enverga and Aggabao

TO THE COMMITTEE ON RULES

Report by the Committee on Legislative Franchises (Committee Report No. 871), re H.B. No. 8265, entitled:“AN ACT RENEWING FOR ANOTHER

T W E N T Y- F I V E ( 2 5 ) Y E A R S T H E FRANCHISE GRANTED TO BEACON COMMUNICATIONS SYSTEMS, INC. UNDER REPUBLIC ACT NO. 8063, ENTITLED ‘AN ACT GRANTING THE BEACON COMMUNICATIONS SYSTEMS, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN COMMERCIAL RADIO STATIONS IN THE PHILIPPINES’ ”

recommending its approval in substitution of House Bill No. 8092

Sponsors: Representatives Alvarez (F.) and EnvergaTO THE COMMITTEE ON RULES

Report by the Committee on Legislative Franchises (Committee Report No. 872), re H.B. No. 8266, entitled:“AN ACT RENEWING FOR ANOTHER TWENTY-

FIVE (25) YEARS THE FRANCHISE GRANTED TO MARECO BROADCASTING NETWORK, INC. UNDER REPUBLIC ACT NO. 8108, ENTITLED ‘AN ACT GRANTING T H E M A R E C O B R O A D C A S T I N G NETWORK, INC., A FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE RADIO BROADCASTING AND TELEVISION STATIONS IN THE PHILIPPINES’ ”

recommending its approval in substitution of House Bill No. 8119

Sponsors: Representatives Alvarez (F.), Belmonte (F.) and Datol

TO THE COMMITTEE ON RULES

Report by the Committee on Legislative Franchises (Committee Report No. 873), re H.B. No. 8268, entitled:“AN ACT RENEWING FOR ANOTHER

T W E N T Y- F I V E ( 2 5 ) Y E A R S T H E FRANCHISE GRANTED TO RADIO AUDIENCE DEVELOPERS INTEGRATED O R G A N I Z AT I O N , I N C . U N D E R REPUBLIC ACT NO. 8083 ENTITLED ‘AN ACT GRANTING THE RADIO AUDIENCE DEVELOPERS INTEGRATED ORGANIZATION, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN COMMERCIAL RADIO STATIONS IN THE PHILIPPINESS’ ”

recommending its approval in substitution of House Bill No. 8091

Sponsors: Representatives Alvarez (F) and EnvergaTO THE COMMITTEE ON RULES

Report by the Committee on Legislative Franchises (Committee Report No. 874), re H.B. No. 8269, entitled:“AN ACT RENEWING FOR ANOTHER TWENTY-

FIVE (25) YEARS THE FRANCHISE GRANTED TO PHILIPPINE RADIO CORPORATION UNDER REPUBLIC ACT NO. 8032, ENTITLED ꞌAN ACT GRANTING THE PHILIPPINE RADIO CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN COMMERCIAL RADIO STATIONS IN THE PHILIPPINESꞌ ”

recommending its approval in substitution of House Bill No. 8093

Sponsors: Representatives Alvarez (F) and AggabaoTO THE COMMITTEE ON RULES

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THURSDAY, SEPTEMBER 20, 2018 17th Congress 3RS v.2 • Congressional Record 5

THE DEPUTY SPEAKER (Rep. Abu). The Majority Leader is recognized.

CONSIDERATION OF H.B. NO. 8169Continuation

PERIOD OF SPONSORSHIP AND DEBATE

REP. PALMA. Mr. Speaker, I would like to move that we now continue the consideration of House Bill No. 8169, the Fiscal Year 2019 General Appropriations Bill.

THE DEPUTY SPEAKER (Rep. Abu). Is there any objection? (Silence) The Chair hears none; the motion is approved.

May I direct the Secretary General to read only the title of House Bill No. 8169 for the continuation of its consideration on Second Reading.

REP. PALMA. Mr. Speaker, I would like to move for the suspension of session to allow the appropriate department to prepare.

I am sorry. I withdraw the motion, Mr. Speaker. I would like to request that we direct the Secretary General to read the title of House Bill No. 8169.

THE DEPUTY SPEAKER (Rep. Abu). I have already directed the Secretary General to read the title of the Bill.

THE SECRETARY GENERAL. House Bill No. 8169, entitled: AN ACT APPROPRIATING FUNDS FOR THE OPERATION OF THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES FROM JANUARY ONE TO DECEMBER THIRTY-ONE, TWO THOUSAND AND NINETEEN, AND FOR OTHER PURPOSES.

THE DEPUTY SPEAKER (Rep. Abu). The Majority Leader is recognized.

SUSPENSION OF SESSION

REP. PALMA. Mr. Speaker, I would like to move to suspend the session.

THE DEPUTY SPEAKER (Rep. Abu). The session is suspended.

It was 1:04 p.m.

RESUMPTION OF SESSION

At 1:11 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Abu). The session is resumed.

The Majority Leader is recognized.

OFFICE OF THE PRESIDENTIAL ADVISER ON THE PEACE PROCESS.

REP. PALMA. Mr. Speaker, I move that we proceed to the period of interpellation and begin the consideration of the budget of the Office of Presidential Adviser on the Peace Process.

THE DEPUTY SPEAKER (Rep. Abu). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, I would like to move that we recognize the Gentleman from the First District of Lanao del Norte, Rep. Mohamad Khalid Q. Dimaporo to answer questions, if any, on the budget of the OPAPP.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). The Hon. Mohamad Khalid Dimaporo is recognized to sponsor the budget of the Office of the Presidential Adviser on the Peace Process.

REP. DIMAPORO (M.). Thank you, Mr. Speaker. Mr. Speaker, I would like to sponsor the budget of the Office of the Presidential Adviser on the Peace Process, the amount of P688,659,000 for calendar year 2019.

THE DEPUTY SPEAKER (Rep. Abu). The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, I would like to move for the recogntion of the Hon. Anthony M. Bravo, PhD, to interpellate on the budget of the OPAPP.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). Rep. Tony Bravo is recognized to interpellate the good Sponsor, the Hon, Mohamad Dimaporo.

REP. BRAVO (A.). Thank you, Mr. Speaker. Will the distinguished Sponsor yield to some questions from this Representation?

SUSPENSION OF SESSION

REP. DIMAPORO (M.). Mr. Speaker, may I move for a one-minute suspension of the session.

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6 Congressional Record • 17th Congress 3RS v.2 THURSDAY, SEPTEMBER 20, 2018

REP. BRAVO (A.). The session is suspended.

It was 1:13 p.m.

RESUMPTION OF SESSION

At 1:13 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Abu). The session is resumed.

The Sponsor is recognized.

REP. DIMAPORO (M.). Mr. Speaker, I am willing to answer any questions for clarification of the OPAPP budget.

THE DEPUTY SPEAKER (Rep. Abu). You may now proceed, the Hon. Tony Bravo.

REP. BRAVO (A.). Thank you, Mr. Speaker. Thank you, distinguished Sponsor.

Good afternoon to everyone and to the family of the OPAPP. Distinguished Sponsor, allow me to start the scrutiny of the budget of OPAPP a year back, at least for 2016. How much was the appropriation or was appropriated by Congress in 2016?

REP. DIMAPORO (M.). Mr. Speaker, from my recollection, it was roughly around P8 billion.

REP. BRAVO (A.). Come again, please.

REP. DIMAPORO (M.). From my recollection, it was around P8 billion, but the exact amount, the total is—sorry, Mr. Speaker, I would like to seek a clarificatory question. Are you mentioning the total budget of the OPAPP?

REP. BRAVO (A.). The total budget for 2016.

REP. DIMAPORO (M.). Including the PAMANA Program?

REP. BRAVO (A.). Including the PAMANA Program, 2016.

REP. DIMAPORO (M.). For 2016, the total budget is P767,000,913.

REP. BRAVO (A.). So, clearly, the budget of the OPAPP in 2016 could be considered as a meager budget amounting to P767,000,913. So, apple to apple tayo.

REP. DIMAPORO (M.). Yes, Mr. Speaker.

REP. BRAVO (A.). Okay. Now, come 2017, a

huge budget was allotted to the agency amounting to P8,062,519,000.

REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. BRAVO (A.). Meaning, it was more than a P7 billion increase.

REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. BRAVO (A.). What was the item of expenditure wherein the huge fund was allotted?

REP. DIMAPORO (M.). Mr. Speaker, that was the PAMANA Program. In year 2016, the PAMANA Program was allocated to specific line agencies, but for calendar year 2017, it has been reallocated to the OPAPP as the implementing agency.

REP. BRAVO (A.). So, in 2017, as mentioned by the distinguished Sponsor, Mr. Speaker, there was already the item of expenditure identified as to where the fund shall be utilized as approved by Congress. Am I correct?

REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. BRAVO (A.). You made mention that there was reallocation. What does it mean, distinguished Sponsor? Does it mean that the item of expenditure that was identified in 2017, which was approved by Congress, was not followed anymore?

REP. DIMAPORO (M.). Mr. Speaker, what it means is that, I believe the Executive looked at the implementation of the PAMANA among the different national line agencies and they found out that there had been a low utilization of the fund for the program because the PAMANA was treated as a secondary or tertiary priority in their respective line agencies. So, in 2017, the attempt of the Executive was to allocate the PAMANA fund under the OPAPP so that the OPAPP will directly implement the said PAMANA fund. For that year, 2017, unlike its previous years, the utilization of the PAMANA fund was roughly 99 percent.

REP. BRAVO (A.). In 2017?

REP. DIMAPORO (M.). In 2017.

REP. BRAVO (A.). So, let me go back to my previous question that, in fact, in 2017, while you are giving us an impression that it was reallocated to those agencies, it was approved by this Body then that there

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was already an item of expenditure, it was itemized. Was it followed, distinguished Sponsor?

REP. DIMAPORO (M.). Yes, Mr. Speaker, to our knowledge, it has been followed.

REP. BRAVO (A.). Those projects were locally funded projects, am I correct?

REP. DIMAPORO (M.). Those projects were allocated by Congress and placed in the GAA and they were implemented accordingly. I do not believe they are locally funded. They are funded by the national government.

REP. BRAVO (A.). Speaking of the PAMANA, distinguished Sponsor, can you please give this Representation the map where the PAMANA is allowed to be implemented? Do you have the list?

REP. DIMAPORO (M.). Yes, Mr. Speaker, we can submit the map to the honorable Rep. Tony Bravo.

REP. BRAVO (A.). Can you give that, at least, today, so that we will be able to check whether or not the locations of the projects were complied with by the agency as far as implementation is concerned, distinguished Sponsor?

SUSPENSION OF SESSION

REP. DIMAPORO (M.). Yes, Mr. Speaker, we will submit the map. Unfortunately, what we have is a list. To produce a map, we will probably need the OPAPP to find a computer and print it out. If the Hon. Tony Bravo is willing, we can submit the map sometime later today.

Mr. Speaker, may I move for a one-minute suspension of the session.

THE DEPUTY SPEAKER (Rep. Abu). The session is suspended.

It was 1:19 p.m.

RESUMPTION OF SESSION

At 1:24 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Abu). The session is resumed.

The honorable Sponsor is recognized.

REP. DIMAPORO (M.). Mr. Speaker, I have in my possession the map of the potential or possible regions where the PAMANA Program can be implemented. I

will have somebody or a staff of Congress to submit it to the Hon. Tony Bravo, but if he will allow me to read from it, generally, these are the Cordillera Administrative Region, Bicol, Quezon, Mindoro, Samar Island, Negros, Panay, Davao, Compostela Valley, Caraga, Central Mindanao, Zamboanga, Basilan, Sulu ang Tawi-Tawi Peninsula. These are the possible areas or regions in which the PAMANA Program should be implemented. I would like to request, Mr. Speaker, one of the administrative staff to pick up this map so that it can be given to Congressman Tony Bravo.

REP. BRAVO (A.). Mr. Speaker, distinguished Sponsor, I am looking at the map that the Gentleman just furnished this Representation. This simply means, if I will interpret it according to the map, the Cordillera Administrative Region is covered under the PAMANA Program, the same with the Bicol Region, Samar Island, Negros, Panay, Davao, Compostela, Zamboanga, Basilan and Central Mindanao. Those are only the areas or regions. Am I correct?

Let me cite one item of expenditure in 2017 which I think was a lump sum by nature—Implementation and Monitoring of PAMANA Projects, these are livelihood projects amounting to P1,059,205,000. Can you please give us details on these, to which particular region it was distributed?

REP. DIMAPORO (M.). Mr. Speaker, for the budget stated, that was used for monitoring, I guess, of conflict-affected or influenced areas. What the OPAPP did was they partnered with some international organizations, UN agencies, to assist them in addressing the peace and order issues in those noted regions.

REP. BRAVO (A.). There were two activities lumped under this particular line item, implementation and monitoring, not only monitoring, Mr. Speaker, distinguished Sponsor. Therefore, we will expect that there were livelihood programs implemented. Am I correct?

REP. DIMAPORO (M.). Mr. Speaker, may I have the question repeated.

REP. BRAVO (A.). Let me read the item. “Implementation and Monitoring of PAMANA Projects.” To my mind, Mr. Speaker, distinguished Sponsor, correct me if I am wrong, this was not only about monitoring, but this was also about the implementation of livelihood programs.

REP. DIMAPORO (M.). Yes, that is correct, Mr. Speaker, and the implementation of the livelihood component of the PAMANA Program in 2017 was done by partnering with local government units.

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REP. BRAVO (A.). Can you please provide this Representation a copy of those livelihood projects that were implemented so that we will be able to see if they jive with the map.

REP. DIMAPORO (M.). Yes, Mr. Speaker, we note the request and we will submit a list. It is voluminous and we are requesting the OPAPP to print out the long list of LGU beneficiaries.

REP. BRAVO (A.). We are speaking here, distinguished Sponsor, Mr. Speaker, of a total amount of P8 billion which, in fact, was utilized to implement programs and projects by the OPAPP. I would like to bring to the attention of the distinguished Sponsor and the agency that I have a copy of the COA findings on the unliquidated cash advances amounting to P304,000,000. This was the COA report dated July 11, 2018. Was this COA report received by the OPAPP?

REP. DIMAPORO (M.). Mr. Speaker, this 2017 COA report was received by the OPAPP and from what we understand, that money was used in partnership with the AFP and the DND.

REP. BRAVO (A.). Let me cite one of the findings of the COA. In its Annual Audit Report for 2017, the COA said that the OPAPP has unliquidated fund transfer totaling to P267,451,896.29 to be exact, Mr. Speaker, Your Honor, which has remained outstanding from 2 to more than 10 years now. This should have been addressed already by the leadership of the OPAPP if it has taken already that long, but it was not.

REP. DIMAPORO (M.). Yes, Mr. Speaker. From what I understand, again, we have to remember that the PAMANA Program was being implemented by different agencies prior to 2017 and it was only in 2017 that the budget or the program was under the full control of the OPAPP. For example, that money that the Hon. Tony Bravo cited has actually been transferred to the DND and the AFP. To this day, the OPAPP is fighting to have its books cleared and for the DND and the AFP return those program funds. That is the difficulty with the PAMANA Program. If you do not give the PAMANA Program to the full control of the OPAPP as an agency, then the liability lies not only with the OPAPP but also with the different line agencies like the DND, the AFP, the DA, the DSWD and the DOH. Iyan and problema.

So, in 2017, as part, this is not again—we are not even discussing the 2019 budget which should be a non-issue because the PAMANA Program budget, more or less, has been slashed. We are just going back in history to discuss the 2017 OPAPP budget and this was the problem that, hopefully, has been rectified in the 2017 budget. If you are going back 10 years prior to 2017,

yes, I admit, that was the problem of the PAMANA Program. Kung pasa ng pasa ng budget sa iba-ibang ahensiya, it will be an administrative and auditing mess. Sana lang, we maintain it in one agency.

Thank you, Mr. Speaker.

REP. BRAVO (A.). Distinguished Sponsor, Mr. Speaker, in 2017, the OPAPP was given that mandate. In fact, the OPAPP was also strengthened as far as monitoring was concerned and an appropriation was allotted to it so that it would be empowered to do the monitoring. Despite that, Mr. Speaker, distinguished Sponsor, this happened.

REP. DIMAPORO (M.). During that time, Mr. Speaker, the utilization rate of the OPAPP in 2017 was 99 percent. Actually, if you look at it historically, the Hon. Tony Bravo is right in that once the PAMANA Program will be transferred to the full control of the OPAPP, we will have a good and more transparent utilization of the PAMANA funds. When it was scattered to different agencies, it became disorganized and thus, we had a problem. In essence, I actually agree, if that is the point of Congressman Bravo, na medyo magulo. Yes, I agree na magulo ito and that is why I am trying my best to entertain the honorable Congressman from Coop-NATCCO Party-List.

REP. BRAVO (A.). I am raising this issue, distinguished Sponsor, Mr. Speaker, para po sa mga susunod na taon ay baka maayos natin at hindi na magiging magulo ito. Again, I would like to cite the no. 16 finding regarding the funds for the implementation of projects under the PAMANA Program for calendar year 2017, where the total amount of P932,669,577.80 as of December 31, 2017 was not released to the beneficiaries due to the nonsubmission of required documents. So, what happened to the funds, distinguished Sponsor, Mr. Speaker, amounting to almost a billion that were not released to the beneficiaries?

The Sponsor mentioned a while ago that there was 97 percent utilization of the fund, but take a look at this—there was P932 million which was not released, almost a billion. That is over one-eighth, that is 28 percent, Mr. Speaker, Your Honor.

REP. DIMAPORO (M.). Yes, Mr. Speaker, but that complaint has been resolved since we just came or we just finished the 2016 election and so, there was a change in leadership. Those new local chief executives were requesting for projects to be implemented and that was the beginning of the implementation but, according to the OPAPP, that issue had been resolved, Mr. Speaker.

In addition, Mr. Speaker, if the COA report is the issue, the OPAPP has answered that COA report and we will give the good Congressman Bravo a copy of the answer of the OPAPP.

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REP. BRAVO (A.). I will be expecting, Mr. Speaker, distinguished Sponsor, a copy of that answer of the OPAPP relative to the findings of the COA, because if we are going to sum this up, it involves more than P3 billion, Mr. Speaker, distinguished Sponsor, and that needs to be clarified. Tama po iyong sinabi ninyo kanina na medyo magulo ito at nakikita natin ito, and even the COA is saying na talagang may problema tayo.

Now, let us go to 2018. From the total appropriation of P8 billion in 2017, how much was the appropriation in 2018, Mr. Speaker, Your Honor?

REP. DIMAPORO (M.). The amount of P7.3 billion was implemented under the PAMANA Program for the 2018 budget.

REP. BRAVO (A.). In 2018?

REP. DIMAPORO (M.). Yes, in the 2018 budget. So, P7.3 billion was implemented under the PAMANA Program, Mr. Speaker.

REP. BRAVO (A.). Per the 2018 budget, the total appropriation was P5,883,823,000. Does it mean that it carries a continuing appropriation from the preceding year because of the P7 billion, Mr. Speaker, Your Honor?

REP. DIMAPORO (M.). It is not a continuing fund, but P5 billion was downloaded to the DPWH from the infrastructure component of the PAMANA Program in 2018.

REP. BRAVO (A.). So, P5 billion. So, the difference between P7 billion and P5 billion, where was it utilized?

REP. DIMAPORO (M.). The P2 billion was intended for the livelihood projects under the PAMANA and so, it has been downloaded to the different LGUs.

REP. BRAVO (A.). Again, I would like to request for a copy of the list of beneficiaries to whom it was downloaded, distinguished Sponsor, Mr. Speaker. It is provided in the special provision or it is a policy that you cannot download to any beneficiary or local government if they have unliquidated cash advances that were not yet settled. In fact, the report provided by the COA was only as of July 11, 2018, so, it is just very recent, Mr. Speaker, distinguished Sponsor. If we speak of the 2018 budget being downloaded, this starts from the first quarter of the year 2018. If there were findings released by the COA only last July 2018, so, we need to see whether or not such provision that a local government cannot or should not be downloaded with a particular amount coming from that program if it has unliquidated cash advances—because the issue here is that there are a lot of unliquidated cash advances by the beneficiaries or the local government.

REP. DIMAPORO (M.). Thank you, Mr. Speaker. Again, in 2018—and I would like to thank Congressman Tony Bravo again for bringing this up—we reverted to the problem historically, the accounting and auditing mess that happened prior to 2017. In the 2018 budget, there was a special provision that the OPAPP is merely a monitoring agency as far as the implementation of the PAMANA is concerned. So, for example, the implementation of infrastructure projects is not being done by the OPAPP but was transferred to the DPWH. I would like to correct myself, Mr. Speaker—the P2 billion that the Hon. Tony Bravo had mentioned, which was actually the livelihood or the soft component of the PAMANA, had been downloaded or transferred to partner agencies and if I would be allowed to read: for CHED, P18,860,000; for DSWD, P1,453,948,000; for NCIP, P8,240,000; for PhilHealth, P54,034,000; and for the Autonomous Region in Muslim Mindanao, P560,100,000, for a total of P2,095,182,000, which was correctly stated earlier by the honorable Congressman Tony Bravo and I have this list.

Thank you.

REP. BRAVO (A.). May I also be furnished with a copy of the list, distinguished Sponsor, Mr. Speaker. So, you are giving an impression to this Body, distinguished Sponsor, that even in 2017, the same agencies were the recipients of the 2018 budget for the PAMANA because in 2017, the implementing agencies were the CHED, DENR, DOH, DSWD, NCIP, PhilHealth and PNP. Are they the same agencies for 2018?

REP. DIMAPORO (M.). In 2018, Mr. Speaker, the system was changed again. Rather than the OPAPP implementing it directly on the ground, the OPAPP simply became the caretaker of the funds and it transferred the funds to the respective national line agencies. Actually—sorry, may I correct myself, Mr. Speaker. These funds were transferred or downloaded directly from the DBM to the respective national line agencies and this is 2018. In 2017, the OPAPP was the implementor of the fund and so, for the livelihood component, for example, it downloaded directly to local government units after it signed MOAs with them.

REP. BRAVO (A.). So, this is now a different setup, distinguished Sponsor.

REP. DIMAPORO (M.). Yes, this is a different setup, Mr. Speaker.

REP. BRAVO (A.). That is why I want to highlight this because in 2017, the accountable agency of the P7 or P8 billion fund was, in fact, the OPAPP—not that there will be an accusing finger at the other agencies that they are the ones accountable. Am I correct?

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REP. DIMAPORO (M.). That is very correct, Mr. Speaker.

REP. BRAVO (A.). In fact, in 2017, the projects were identified and were clearly specified, for example, for what type of project it will be used and, in fact, including the appropriation. That is why I have been asking for a report on how the program fund was being utilized because clearly, it is really a form of support to our people who are affected and, you know, confronted with poverty in conflict-afflicted areas, if I am not mistaken, distinguished Sponsor.

REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. BRAVO (A.). So, can you give me a copy of that—the one that you read awhile ago, so that we will be able to appreciate it fully. So, distinguished Sponsor—this is from what you read awhile ago—the proposed fund for direct release to the DPWH was P5,206,818,000 and the role now of the OPAPP is just to monitor the program. Am I correct?

REP. DIMAPORO (M.). Yes, that is correct, Mr. Speaker, and again, we have to stress this—that OPAPP does not touch those funds. They are downloaded directly from the DBM to the respective national line agencies.

REP. BRAVO (A). If these funds were downloaded to the DPWH, who decides who are the beneficiaries? Who identifies or who identified the beneficiaries, Your Honor, distinguished Sponsor?

REP. DIMAPORO (M.). Mr. Speaker, in terms of the DPWH or infra projects, the projects are identified by the OPAPP. These have been itemized and endorsed by the local government units which have conflict or are in conflict-affected areas. As facilitated by the OPAPP, they are the ones, more or less, which make the list of the projects to be implemented, for example, for the 2018 calendar year, but as far as the implementation of those projects, it is purely under the discretion of the Department of Public Works and Highways.

REP. BRAVO (A.). Please enlighten this Representation, Your Honor, Mr. Speaker, because I am a bit confused. The funds are directly downloaded to the DPWH, and the OPAPP identifies the project, but you are telling us that the local government is part of the implementation. How does it work, Mr. Speaker, distinguished Sponsor?

REP. DIMAPORO (M.). Thank you, Mr. Speaker. To explain the PAMANA Program, for example, you

have barangays or municipalities that have the presence of, let us say, the NPA or the MILF or the BIFF, then, the program of the PAMANA can come in. Under the PAMANA Program, these respective local government units, like barangays, can propose to the OPAPP certain projects on livelihood and—sana lang wala nang away, wala nang rebelde—and infrastructure structure projects. For example, a farm-to-market road leading to an area where there is a high activity of rebels, or certain barangays na walang tubig where you have a high concentration of insurgents, you can implement a water system there and so, at least they can feel the presence of the government—these projects were proposed for the 2018 budget year and the PAMANA—sorry, the OPAPP normally presents those to Congress and these were all itemized in our GAA.

Now, when Congress passed the GAA for 2018, unfortunately, there was a special provision therein that the OPAPP cannot implement these projects directly. So, they simply identified these projects in the GAA and the funds, for example, for infrastructure will be downloaded from the DBM to the DPWH and the DPWH will now implement the said infrastructure projects as stipulated under the PAMANA Program in our GAA.

REP. BRAVO (A.). Thank you for that answer, distinguished Sponsor. Was there an instance, dis t inguished Sponsor, Mr. Speaker, in the utilization of 2018 budget wherein a project was abandoned?

REP. DIMAPORO (M.). Per our records, Mr. Speaker, there were no projects that had been abandoned.

REP. BRAVO (A.). There was no project that was abandoned as far as the OPAPP is concerned because they are truly in charge of monitoring.

REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. BRAVO (A.). Was there any instance wherein in the utilization of P5 billion, a project was discontinued, distinguished Sponsor, Mr. Speaker?

REP. DIMAPORO (M.). For 2018, Mr. Speaker, there was none.

REP. BRAVO (A.). So, there was none.

REP. DIMAPORO (M.). Yes.

REP. BRAVO (A.). How about in 2017?

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SUSPENSION OF SESSION

REP. DIMAPORO (M.). May I request for a one-minute suspension of the session, Mr. Speaker, so, I can confer with the OPAPP?

THE DEPUTY SPEAKER (Rep. Abu.) The session is suspended.

It was 1:50 p.m.

RESUMPTION OF SESSION

At 1:50 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Abu.). The session is resumed.

The honorable Sponsor is recognized.

REP. DIMAPORO (M.). Mr. Speaker, after conferring with OPAPP, for the 2017 budget, all projects were implemented and no project was abandoned or stopped.

REP. BRAVO (A.). No project?

REP. DIMAPORO (M.). Mr. Speaker, it seems that I have to correct my statement. There were two projects that were cancelled in the 2017 budget.

REP. BRAVO (A.). That had been abandoned or discontinued?

REP. DIMAPORO (M.). For lack of a better word, Mr. Speaker, they had been discontinued or abandoned.

REP. BRAVO (A.). What was the reason for such abandonment?

REP. DIMAPORO (M.). Mr. Speaker, it seems that these two projects were, actually, not infrastructure in nature, but were part of the livelihood component and they have been abandoned or stopped, they were not implemented. So, it seems that when the LGU was informed about these projects, in these two cases, the LGU did not want the projects to be implemented and so, they have been abandoned.

REP. BRAVO (A.). There is a cash equivalent, distinguished Sponsor, Mr. Speaker. How much is the total figure when we speak of these projects?

REP. DIMAPORO (M.). It is P8 million, Mr. Speaker.

REP. BRAVO (A.). So, it is P8 million, and there

were two local governments involved in these projects. Am I correct? What was the reason these projects were not implemented by the local governments?

REP. DIMAPORO (M.). The local governments were not interested, Mr. Speaker.

REP. BRAVO (A.). I just wonder, Mr. Speaker, distinguished Sponsor—because for a beneficiary and for that matter, a local government, the OPAPP conducted due diligence prior to identification of the project but it was remiss in the implementation of the project. Was there really due diligence made by the OPAPP so that projects that were identified and similarly classified by it will not result in a situation wherein these projects cannot be implemented after identification?

REP. DIMAPORO (M.). Mr. Speaker, in 2016, we had our national elections and the Duterte administration won. The 2017 budget, we all know this here in Congress, more or less, was inherited from the previous administration and so, as far as the verification of those projects, for example, well, the OPAPP should have done due diligence, but as far as the OPAPP as an agency under the Duterte administration is concerned, it was found that these projects that have been cancelled, actually, were not wanted by the local government units.

REP. BRAVO (A.). These projects are funded under the 2017 budget, am I correct?

REP. DIMAPORO (M.). Under the 2017 budget, that is correct, Mr. Speaker, and if I am not mistaken, in our budgetary process for 2016, we, more or less, inherited the programs of the OPAPP from the previous administration.

REP. BRAVO (A.). So, what were inherited by the Duterte administration were the programs in 2015 because the administration of President Duterte started in July 2016. We are speaking here of the 2017 budget, Mr. Speaker, distinguished Sponsor.

REP. DIMAPORO (M.). Mr. Speaker, in 2016, when Secretary Dureza assumed his post, that must have been around July 2016 and so, the programs and the proposals for the 2017 budget had already been finished and submitted to the DBM. When the 2017 budget was approved by Congress, the OPAPP has to, more or less, follow the GAA and implement the programs as proposed by the previous administration but, again, in the case of these two LGUs, they did not want those projects.

REP. BRAVO (A.). In 2016, if the project is Capital Outlays and MOOE, then it has a two-year validity. Am I correct?

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REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. BRAVO (A.). In 2017, the project has a one-year validity.

REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. BRAVO (A.). So, what happened to the fund of P8 million that was intended for the projects that were not implemented? As you mentioned awhile ago, the two projects that were abandoned or not implemented amounted to P8 million. Was the amount classified as savings, distinguished Sponsor? Did it revert to the National Treasury?

REP. DIMAPORO (M.). Mr. Speaker, the P8 million was returned to the DBM. It was not utilized, so, it was returned to the DBM.

REP. BRAVO (A.). If we are going to look at the Appropriations Obligation, there was a Continuing Appropriations in 2017, which was an added fund to the New Appropriations that was allotted by Congress in 2017. In the interest of time, Mr. Speaker, distinguished Sponsor, please submit the actual list of the projects and programs that were funded by the amount of P5,206,818,000 to this Representation.

REP. DIMAPORO (M.). We will do so, Mr. Speaker.

REP. BRAVO (A.). By the way, what is the manner of reporting by the OPAPP relative to the implementation of the project? They are monitoring and rendering reports, is it not, distinguished Sponsor? Is it by month, quarterly?

REP. DIMAPORO (M.). Mr. Speaker, the report is submitted quarterly.

REP. BRAVO (A.). Therefore, we will be expecting a report as far as the implementation of 2018, at least a cutoff as of August 2018.

REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. BRAVO (A.). When can I expect such report, distinguished Sponsor?

REP. DIMAPORO (M.). It can be turned over to the honorable Cong. Tony Bravo within the week, Mr. Speaker.

REP. BRAVO (A.). Within the week, okay. If the OPAPP is rendering a report every quarter, so, there is already a report as of the cutoff in June 30, 2018, if I am not mistaken, the first two quarters.

REP. DIMAPORO (M.). Sorry, is this for 2018? Which budget are we talking about now?

REP. BRAVO (A.). The 2018 budget.

REP. DIMAPORO (M.). Sorry, Mr. Speaker. Yes, we have those quarterly reports.

REP. BRAVO (A.). So, if there was already a report for the two quarters, can the OPAPP furnish this Representation today?

REP. DIMAPORO (M.). Yes, that can be given—we have our commitment from them, Mr. Speaker, and they will submit it today.

REP. BRAVO (A.). Since there is another Member of this Body who would want to proffer questions, distinguished Sponsor, Mr. Speaker, I will wait for that list of projects that were implemented or the report relative to the utilization of P5 billion today, and if time warrants, I hope, Mr. Speaker, distinguished Sponsor, this Representation will still be allowed to propound some more questions relative to the report. Will that be accommodated?

REP. DIMAPORO (M.). I submit to the will of our Speaker.

REP. BRAVO (A.). So, as signified by the Majority Leader that this Representation will still be allowed to propound more questions after receiving the report, then I will yield to the next interpellator.

Thank you, Mr. Speaker. Thank you distinguished Sponsor.

THE DEPUTY SPEAKER (Rep. Abu). Thank you, Rep. Tony Bravo.

The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, next to interpellate is the Hon. Makmod D. Mending Jr. of the Party-List ANAK MINDANAO.

THE DEPUTY SPEAKER (Rep . Abu) . Representative Mending is recognized to interpellate the good Sponsor of the budget for the Office of the Presidential Adviser on the Peace Process.

REP. MENDING. Thank you, Mr. Speaker. Assalaam alaikum and good afternoon.

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REP. DIMAPORO (M.). Assalaam.

REP. MENDING. Will my very good friend, the Gentleman from Lanao del Norte, accept some questions?

REP. DIMAPORO (M.). Alaikum assalaam. Mr. Speaker, I will be happy to entertain the questions from the Representative of our number one party-list in the province of Lanao del Norte.

REP. MENDING. Thank you, Mr. Speaker, distinguished Sponsor. I do not want to belabor this House for discussing some more issues on the PAMANA, and the Hon. Tony Bravo has exhausted the past. May I ask for the future, Mr. Speaker, distinguished Sponsor? What are we looking at in terms of the PAMANA for 2019?

REP. DIMAPORO (M.). Thank you, Mr. Speaker. As far as the PAMANA 2019, the project is not funded in the GAA.

REP. MENDING. Thank you, Mr. Speaker, distinguished Sponsor. Are we made to believe that it is the policy of the government to discontinue the PAMANA Program?

REP. DIMAPORO (M.). Mr. Speaker, I would not venture to say that that is the policy of the Duterte administration. I believe our President’s primordial concern, especially for the region of Mindanao, is to establish peace in our area and so, we are hoping that the PAMANA Program will be reinstalled. I believe it has been removed in the 2019 GAA because of the Cash-Based Budgeting policies of Secretary Diokno.

REP. MENDING. Thank you, Mr. Speaker, distinguished Sponsor. I believe that we are given a chance here in the House to determine truly the policy of this government. We are in a position to restore the budget for the PAMANA Program, Mr. Speaker, distinguished Sponsor. So, may I know from the distinguished Sponsor what efforts he would make to be able to restore the budget for the PAMANA Program?

REP. DIMAPORO (M.). In my power as Vice Chairman, I would simply sponsor this budget and cross my fingers that the PAMANA Program will be reinstated under the leadership of Speaker Gloria Macapagal-Arroyo. Should it not be reinstated, I humbly submit to the will of the majority.

REP. MENDING. Thank you, Mr. Speaker,

distinguished Sponsor. Having heard that, on the part of this humble Representative, there are two of us here from the ANAK MINDANAO Party-List and that, for as long as we can, for how much as we can, we will commit to continue supporting the PAMANA Program.

Thank you, Mr. Speaker, distinguished Sponsor.

THE DEPUTY SPEAKER (Rep. Abu). Thank you, Representative Mending.

The Majority Leader is recognized.

REP. HERRERA-DY. Mr. Speaker, I would like to move that we recognize the Hon. Ariel “Ka Ayik” B. Casilao for his interpellation.

THE DEPUTY SPEAKER (Rep . Abu) . Representative Casilao is recognized to interpellate the good Sponsor.

REP. CASILAO. Thank you, Mr. Speaker. Good afternoon, distinguished Sponsor. Are you

willing to answer some questions?

REP. DIMAPORO (M.). Yes, Mr. Speaker, I am willing to answer the questions of the Honorable Casilao.

REP. CASILAO. Before I expound on my first question, Mr. Speaker, distinguished Sponsor, yesterday I read a newspaper report, entitled: “Communism Insurgency will end in 2019.” This was on the fearless forecast of President Duterte. Ano po ba ang bago dito? Last year, the same fearless forecast was articulated—that 2018 will be the end of communist insurgency. Now, the President himself, the Commander-in-Chief, stated again that communist insurgency will end in 2019. My question is, distinguished Sponsor, is it our understanding that the road to ending communist insurgency is not by the peace process as the principal mandate of the OPAPP, but by virtue of another military solution?

REP. DIMAPORO (M.). Mr. Speaker, as the former Governor of Lanao del Norte that has experienced conflict—our provinces experienced conflict over decades—I can state that the other solution, the military solution, will never prevail. So, peace, hopefully, can be best achieved through diplomacy. As far as the communist insurgency is concerned, I think, from the statements of the President, he is willing to provide hope and a general direction for the OPAPP to try their best to do the impossible. As far as the communist insurgency is concerned, again, if there was an instruction to cease and desist in terms of the negotiations for peace in

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the national level, the OPAPP is still continuing to do their duty by assisting and prodding local government units to host localized peace talks with the communist insurgents, Mr. Speaker.

REP. CASILAO. Well, I fully agree with the distinguished Sponsor, Mr. Speaker, that it cannot be resolved by means of a military approach or solution. The localized peace negotiations or peace talks being articulated by the distinguished Sponsor, may I know if there are already local government units conducting such efforts with local communist leaders or local communist organizations?

REP. DIMAPORO (M.). Mr. Speaker, there are efforts and several local government units are already engaging with local communist insurgents. I would like to give Lanao del Norte as an example. Kapatagan Valley was once a hotbed of the communist insurgency, but with the constant—monthly, quarterly, annual—diplomatic mechanisms between the mayors and the barangays over a period of three years, we were able to declare Kapatagan Valley of Lanao del Norte as insurgency-free.

So, to answer the question of the Honorable Casilao, as of now, the OPAPP is working on it. Have they achieved it? They have made some progress. God-willing, peace will prevail and hopefully, in the coming years, we will find some sort of common ground between the local government units and their counterparts in the communist rebel command.

REP. CASILAO. May I know if the distinguished Sponsor and the Secretary of the OPAPP believe that through local peace negotiations, the roots of the armed conflict, the problems why there is an insurgency in the first place, can be addressed. For example, distinguished Sponsor, Mr. Speaker, can the local peace negotiations or local peace talks address the problem of land reform? Is it not a national policy that must be put in place? Second, can the local peace efforts or local peace talks address the problem of poverty? Is it not also a national policy that should be put in place to address such problem?

May I know the sentiments of the distinguished Sponsor?

REP. DIMAPORO (M.). Mr. Speaker, again, the localized peace talks between local communist insurgents or rebel commanders is not the silver bullet to solve peace. Really, to achieve peace, this needs to be a multi-stakeholder approach, and not only the local government units but also the private sector, the religious sector, the civil society, all of us have to contribute to peace-building. As far as the national

government is concerned, the door is always open and we are also praying that one day our President and his counterpart in the CPP-NPA will see eye-to-eye and start negotiating, again, for peace for the betterment of our Republic, Mr. Speaker.

REP. CASILAO. I am with one with you, distinguished Sponsor, that even if it is just a tiny hole of opportunity to revert to the peace negotiation, we should grab it. We all lose in a game of war.

My other question is, Mr. Speaker, are you familiar with Administrative Order No. 10?

REP. DIMAPORO (M.). Mr. Speaker, I believe this is the Rebel Returnee Program.

REP. CASILAO. Yes, it is an administrative order entitled “Centralizing All Government Efforts for the Reintegration of Former Rebels and Creating for the Purpose of an Inter-Agency Task Force.” My particular question, Mr. Speaker, distinguished Sponsor, the Task Force Balik-Loob (TFBL), which was created under the auspices of AO 10, one of its key features is the repackaging of the previous program from 2016, 2017 and even the current program prior to the issuance of this AO 10, the Comprehensive Local Integration Program or CLIP. It was augmented and now it is called “Enhancement of the CLIP” or “E-CLIP.” Now, the TFBL has a program with a financial component, wherein there is a package for those who will surrender. I think and I believe this is not only applicable to the NPAs, but includes other armed groups or in military parlance, internal armed elements or armed threats.

So, may I know for the 2019 budget, out of the P600 plus million, how much is the appropriation for this Task Force Balik-Loob component as chaired by the DND, and if one of the IAs, implementing agencies, is the OPAPP? May I know if, in the proposed 2019 budget of the OPAPP, this is incorporated as one of the programs for implementation, this Task Force Balik-Loob under Administrative Order No. 10?

REP. DIMAPORO (M.). Mr. Speaker, the E-CLIP is not incorporated in the budget of the OPAPP. The Honorable Casilao may be able to seek an answer to his question if he interpellates on the budget of the DILG where the E-CLIP and its budget were placed.

REP. CASILAO. So, may I be educated of the role of the OPAPP in this interagency task force.

REP. DIMAPORO (M.). Mr. Speaker, the OPAPP is part of the interagency task force, but they do not lead the E-CLIP.

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REP. CASILAO. Yes, yes, but what is the particular role of OPAPP in this interagency task force?

REP. DIMAPORO (M.). Mr. Speaker, the role of the OPAPP is to contribute in terms of the implementation of the E-CLIP by providing certain specialties that they have, for example, conflict-sensitivity and peace-promoting techniques that they have implemented in certain conflict-affected areas. Also, perhaps, their technical know-how in terms of social healing, on how to deal with the different factors or sectors of the local community.

REP. CASILAO. If you read the statement of the President why he stated his fearless forecast of ending the communist insurgency in 2019, the highlight of the statement is when he said “Marami na ang mga sumuko because the Balik-Loob Program of the government is very effective.”

Now, I would like to peruse the particularity that, because of the funding or the appropriations that has to be given to those who surrendered to entice them to call their colleagues or their comrades to do the same, it necessitated a budget. Since it is not part of the OPAPP appropriation for 2019, as you have mentioned that it is part of the DND’s appropriation, I believe that the other programs, separate from that implementation of that particular program, are beyond the OPAPP’s decision.

REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. CASILAO. Yes. Thank you for that clarification. The succeeding questions that I have prepared here are—for that matter because, again, although it is for the Sponsor or for the Secretary to answer or not because of the jurisdiction of the succeeding questions that I would like to raise in this august hall—I believe there are problems in the course of the implementation of this program because the OPAPP was denied its particular role in the implementation of the E-CLIP. Ang nagiging problema kasi nito, distinguished Sponsor, nagkakaroon na ng reports, alarming reports at that, and I would like to raise this issue to the OPAPP para magtulungan tayo—hindi lang ang Kongresong ito, kung hindi maging ang OPAPP bilang ahensiya—na nagsusulong ng usaping pangkapayapaan. There are reports that those who availed of the programs in the Task Force Balik-Loob, and in particular the E-CLIP, they were forced to surrender, and that the reports are bloated. Although this is particularly addressed to the AFP, I will ask them on this, during the proper time when the budget of the proper agency will be deliberated on, Mr. Sponsor. I would just like to raise that the concern also of the OPAPP, and it is one with this Representation, if indeed in the process of implementation of the E-CLIP

of the Task Force Balik-Loob, there were violations not only of the procedures, but also of human rights. The number being reported—we will hear that officially from the AFP or the DND—in my research, it is already 6,000, but only less than 200 of the 6,000 are confirmed active members of the armed group who physically surrendered firearms to that effect. The remaining 90 percent, if I am not mistaken, they are plain farmers, they are plain indigenous people situated in the areas, in the course of the determination of the AFP, considered as insurgency hotbeds or they are supporters.

Now, I would like to raise a question of legality to the OPAPP: Kung ikaw ba o iyong komunidad mo ay na-identify na kinikilusan ng NPA—sabihin natin—at pinapasuko ka, iyong kategorya mo doon sa programa ng E-CLIP is “Surrendered,” is it legal or what is the legal basis for those claims, that they can be tagged as part of the structure which the AFP consider as enemies? So, even if you are a civilian but your community is tagged as an insurgency hotbed, or a “red area” according to the parlance of the military, ligal na ba iyon na mabibilang ka doon sa mga estadistikang sinasabing bahagi ka ng nag-avail ng E-CLIP?

REP. DIMAPORO (M.). Mr. Speaker, the OPAPP seems to be in agreement with Representative Casilao and they will raise this up in the interagency meeting.

REP. CASILAO. Maraming salamat, distinguished Sponsor, dahil ako po ay talagang nababahala bagamat kaisa po ninyo ang Kinatawang ito, and the Secretary knows fully well that any effort in rejuvenating, any effort in the possibility of not only resuming the formal, but even including the informal and other efforts para maituloy po iyong malaki na sanang nagawa, sa tulong ng OPAPP at sa pangunguna ng OPAPP, na matalakay iyong mga mahahalagang laman na pinag-uusapan sa usapang pangkapayapaan para maitulak nga ito—and I recognize the effort and we should also recognize the effort of the OPAPP in clinching the agreement with the Bangsamoro, kaya nga po tumulak iyan.

Hopefully, a version of that with the other armed groups waging insurgency in the Philippines, na may mga lehitimong mga isinusulong, ay maupuan, mapag-usapan at mapagkasunduan. Ganoon naman po tayo at sinisikap na—we want to resume not only the peace negotiations, but we also want to address the very roots of this armed conflict. For us to address it—again, I believe the statement of Secretary Dureza that the road to peace is humpy and bumpy, na kahit marami po ang mga lubak-lubak diyan—sa Bisaya po ay maraming ganyang mga dadaanan—pero it is again a sacrifice that we should make not only for our sake, but for the sake of the future generations.

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Thank you, Mr. Speaker. Thank you, distinguished Sponsor.

THE DEPUTY SPEAKER (Rep. Abu). Thank you, Representative Casilao.

The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, I move that we recognize the next to interpellate—the Minority Leader, the Hon. Danilo E. Suarez.

THE DEPUTY SPEAKER (Rep. Abu). The distinguished Minority Leader, the Hon. Danilo Suarez, is recognized to interpellate the distinguished Sponsor of the Office of the Presidential Adviser on the Peace Process.

SUSPENSION OF SESSION

REP. PALMA. Mr. Speaker, I move to suspend the session.

THE DEPUTY SPEAKER (Rep. Abu). The session is suspended.

It was 2:22 p.m.

RESUMPTION OF SESSION

At 2:23 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Abu). The session is resumed.

The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, we would like to withdraw the motion to recognize the Hon. Danilo Suarez. At this point, Mr. Speaker, I move that we recognize the Hon. Ruby M. Sahali of Tawi-Tawi for her manifestation.

THE DEPUTY SPEAKER (Rep . Abu) . Representative Sahali is recognized for her manifestation.

REP. SAHALI. Thank you, Mr. Speaker.Mr. Speaker, I have gone through the budget of the

OPAPP and I have seen that there are some budgets that are really critical for the Bangsamoro Organic Law (BOL) and eventually, for the implementation of the Exit Agreement between the government and the MILF. Mr. Speaker, this Representation would like to manifest that there is an additional budget or reinstatement of the budget of the OPAPP in the amount of P5,854,778,121 for the normalization process; and P1,274,383,000 for the transition to the Bangsamoro

Transition Authority, which includes the enactment of priority legislations, organizational activities, full transfer of powers and properties of the ARMM to the Bangsamoro government and the determination of parliamentary districts for the first regular elections of the Parliament. Aside from the enactment of the BOL, the normalization process is also a part of the implementation of the signed Comprehensive Agreement on the Bangsamoro. The completion of the normalization phase is a vital component between the government and the MILF parties to sign an Exit Agreement. Mr. Speaker, the signing of the Exit Agreement between the two parties signals the end and the success of our peace negotiations with the MILF. Let us support and fund it, Mr. Speaker.

That is my manifestation as Chairman of the Special Committee on Peace, Reconciliation and Unity. We just approved Republic Act No. 11054, the Bangsamoro Organic Law, and this would entail the Exit Agreement process with funding that will be incurred or incorporated into the OPAPP. That is all, Mr. Speaker.

Maraming salamat po.

THE DEPUTY SPEAKER (Rep. Abu). The manifestation is noted.

The Majority Leader is recognized.

SUSPENSION OF SESSION

REP. PALMA. Mr. Speaker, I move to suspend the session.

THE DEPUTY SPEAKER (Rep. Abu). The session is suspended.

It was 2:26 p.m.

RESUMPTION OF SESSION

At 2:27 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Abu). The session is resumed.

The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, I move that we recognize the Minority Leader, the Hon. Danilo E. Suarez.

THE DEPUTY SPEAKER (Rep. Abu). The Minority Leader, the distinguished Representative from Quezon, the Hon. Danilo Suarez, is recognized to interpellate the Sponsor of the budget of the Office of the Presidential Adviser on the Peace Process.

REP. SUAREZ. Thank you, Mr. Speaker. Will my

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dedicated and hard-working Deputy Minority Leader be willing to answer some questions?

REP. DIMAPORO (M.). Mr. Speaker, I will submit to my boss, Majority Leader Danny Suarez.

REP. SUAREZ. Puwede na rin iyon, Majority o Minority. It really does not matter.

REP. DIMAPORO (M.). Sorry, Minority Leader.

REP. SUAREZ. Distinguished Sponsor, the role of the OPAPP is very sensitive as it is supposed to mediate in and avert a showdown or shoot-out. Is that correct?

REP. DIMAPORO (M.). That is correct, Mr. Speaker.

REP. SUAREZ. Can you also do something in the shoot-out between the Majority Leader and the Chairman of Appropriations? Is that part of the peace process?

REP. DIMAPORO (M.). Secretary Dureza can do that––I think, Mr. Speaker, he can lend a helping hand in terms of the techniques on how to address conflict on the ground.

REP. SUAREZ. How long has this office been functioning, distinguished Sponsor?

REP. DIMAPORO (M.). It has been 25 years, Mr. Speaker.

REP. SUAREZ. So, you were there even during the time of the former President GMA?

REP. DIMAPORO (M.). Yes, Mr. Speaker, and I believe that Secretary Jess Dureza was also her Press Secretary.

REP. SUAREZ. The distinguished Sponsor was our colleague here before. He was a Congressman.

REP. DIMAPORO (M.). For a second round.

REP. SUAREZ. What will be your wish list, distinguished Sponsor, if you will ask your principal? What will be your wish list wherein you can say that “I could perform better” if there would be no slashing of your proposed budget?

REP. DIMAPORO (M.). Mr. Speaker, the wish, so to speak, of our good Secretary Jess Dureza, would be the reinstatement of the PAMANA Program as proposed to the DBM which was, unfortunately, cut. In addition to

that, for the OPAPP to be the one to solely implement the program so that there will be no pasa-pasa ng blame in terms of failure in its implementation on the ground.

REP. SUAREZ. Well, is the PAMANA Program a time-tested approach to this peace process, distinguished Sponsor?

REP. DIMAPORO (M.). Yes, Mr. Speaker. Where the PAMANA Program is implemented, it brings the presence of the government closer to the people who may have felt neglected by our Republic and opted instead to join the insurgency movement. So, the PAMANA Program in essence has its successes and accomplishments, Mr. Speaker.

REP. SUAREZ. Distinguished Sponsor, is the OPAPP concentrating only in Mindanao? Do you also participate in areas where there is an insurgency problem?

REP. DIMAPORO (M.). Mr. Speaker, wherever there is insurgency, the OPAPP is mandated to be present. So, they are actively monitoring and pursuing peace in the Cordillera Region, in the Visayas Region and in some parts of Luzon, not only in Mindanao.

REP. SUAREZ. Maybe in the period of amendments, considering that the head of the OPAPP has the listening ear of the President, of the Speaker, maybe can raise those issues because, you know, Your Honor, at the end of the day, we can say that in a war, there is no victor because the barrel of your M-16 is pointed towards another Filipino brother and this should be averted at all cost. So, I just would like to highlight, again, during that period of realignment—cutting, putting in and adding, subtracting or realigning—this is one particular office that should be given particular attention.

With that, Mr. Speaker, distinguished Sponsor, on behalf of the Minority, we do not have any more questions on the proposed budget of the OPAPP.

THE DEPUTY SPEAKER (Rep. Abu). The Majority Leader is recognized.

REP. PALMA. We thank the Minority Leader, Mr. Speaker, for ending his interpellation. With that, there being no other Member who wishes to interpellate on the budget of the OPAPP, we join the Minority in moving to terminate the period of interpellation and debate thereon.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). Is there any objection? (Silence) The Chair hears none; the motion is approved.

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ZAMBOANGA CITY SPECIAL ECONOMIC ZONE AUTHORITY.

REP. PALMA. Mr. Speaker, I would like to move that we proceed with the period of interpellation and begin the consideration of the budget of the Zamboanga City Special Economic Zone Authority.

I so move, Mr. Speaker. We would like to reiterate the motion, Mr. Speaker. We move that we proceed with the period of interpellation and begin the consideration of the budget of the Zamboanga City Special Economic Zone Authority.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). Who will I recognize to sponsor that budget?

REP. PALMA. Mr. Speaker, first, we would like to acknowledge the presence of the officials of the Zamboanga City Special Economic Zone Authority. With that, we would like to recognize the Hon. Mohamad Khalid Q. Dimaporo to sponsor the budget of the Zamboanga City Special Economic Zone Authority.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). We recognize the family of the Zamboanga City Special Economic Zone Authority. With that, we recognize our distinguished colleague, the Hon. Mohamad Khalid Q. Dimaporo, to sponsor the budget of the said agency.

REP. DIMAPORO (M.). Mr. Speaker, I wish to present on the floor the budget of the Zamboanga City Special Economic Zone Authority for calendar year 2019 in the total amount of P398,239,000.

THE DEPUTY SPEAKER (Rep. Abu). The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, I move that we recognize the Hon. Danilo Suarez, our Minority Leader, to interpellate on the budget of the Zamboanga City Special Economic Zone Authority.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). The distinguished Minority Leader, the Hon. Danny Suarez, is recognized to interpellate the good Sponsor of the budget of the Zamboanga City Special Economic Zone Authority, the Hon. Khalid Dimaporo.

REP. SUAREZ. Thank you, Mr. Speaker. Will my distinguished colleague yield to some questions?

REP. DIMAPORO (M.). Yes, Mr. Speaker, willingly.

REP. SUAREZ. Your Honor, I noticed that you have on your schedule here presented, the raw materials locator Seachamp. Is this the company involved with seaweeds, distinguished Sponsor?

REP. DIMAPORO (M.). Seachamp is an exporter of octopus, Mr. Speaker.

REP. SUAREZ. Are these figures being presented here in US dollars, distinguished Sponsor?

REP. DIMAPORO (M.). Yes, that is correct, Mr. Speaker. The amounts in the presentation are in US dollars.

REP. SUAREZ. These are significant amounts remitted to the government. This is export. May I know the import additive?

REP. DIMAPORO (M.). Mr. Speaker, there is no import. This is simply for the export of octopus.

REP. SUAREZ. So, these are pure dollars. There is no import additive.

REP. DIMAPORO (M.). There is none, Mr. Speaker.

REP. SUAREZ. Apparently, some of these local produce are being used in pharmaceutical products. Is that correct, Your Honor?

REP. DIMAPORO (M.). I believe so, Mr. Speaker.

REP. SUAREZ. Mr. Speaker, Your Honor, the Minority sees the rationale behind the importance of this office and we would advocate that, maybe, after the period of interpellation and debate, in the final version of the 2019 budget, they can be given some more perks, considering the potential of this office that I am looking at right now. As a matter of fact, this is a learning curve to me that we have such an existing office that is doing this much.

Mr. Speaker, on behalf of the Minority, we have no more questions on the proposed budget of the Zamboanga City Special Economic Zone Authority. I so move, Mr. Speaker

THE DEPUTYSPEAKER (Rep. Abu). May I know from the Minority Leader if they are moving to terminate the period of interpellation and debate on the budget of the Zamboanga City Special Economic Zone Authority, on the part of the Minority?

REP. SUAREZ. On the part of the Minority, we are

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moving to terminate the period of interpellation and debate on the budget of the Zamboanga City Special Economic Zone Authority.

THE DEPUTY SPEAKER (Rep. Abu). Will the Majority join the motion of the Minority?

REP. PALMA. Yes, Mr. Speaker, we are joining the Minority. With that, Mr. Speaker, I move to terminate the period of interpellation and debate on the budget of the Zamboanga City Special Economic Zone Authority.

THE DEPUTY SPEAKER (Rep. Abu). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The period of interpellation and debate on the budget of the Zamboanga City Special Economic Zone Authority is terminated. (Applause)

The Majority Leader is recognized.

SUSPENSION OF SESSION

REP. PALMA. I move to suspend the session, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). The session is suspended.

It was 2:39 p.m.

RESUMPTION OF SESSION

At 2:40 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Abu). The session is resumed.

The Majority Leader is recognized.

MINDANAO DEVELOPMENT AUTHORITY

REP. PALMA. Mr. Speaker, I move that we proceed with the period of interpellation and begin the consideration of the budget of the Mindanao Development Authority. I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, I would like to move to recognize the Gentleman from Lanao del Sur, …

REP. DIMAPORO (M.). Del Norte.

REP. PALMA. Sorry, my apologies—from Lanao

del Norte, the Hon. Mohamad Khalid Q. Dimaporo, to sponsor the budget of the Mindanao Development Authority. I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). The distinguished Representative from Lanao del Norte, the Hon. Khalid Dimaporo, is recognized to sponsor the budget of the Mindanao Development Authority.

REP. DIMAPORO (M.). Mr. Speaker, I wish to present to the House of Representatives the budget of the Mindanao Development Authority for calendar year 2019 for a total amount of P159,250,000.

THE DEPUTY SPEAKER (Rep. Abu). The Majority Leader is recognized.

REP. PALMA. Mr. Speaker, I would like to move that we recognize the Minority Leader, the Hon. Danilo E. Suarez, to interpellate on the budget of Mindanao Development Authority.

THE DEPUTY SPEAKER (Rep. Abu). The distinguished Minority Leader, the Hon. Danny Suarez from Quezon Province, is recognized to interpellate the good Sponsor of the budget of the Mindanao Development Authority.

REP. SUAREZ. If I may proceed, distinguished Sponsor. Mr. Speaker, I noticed that there is a reduction on the proposed budget for this office for 2019. Am I correct here?

REP. DIMAPORO (M.). Yes, Mr. Speaker, there is a reduction in the proposed budget.

REP. SUAREZ. In the spreadsheet that you mentioned here, the NCMF is somewhat spread all over the country, it is not just in Mindanao.

REP. DIMAPORO (M.). Mr. Speaker, the budget that we are tackling, as of this moment, is the Mindanao Development Authority and not the National Commission on Muslim Filipinos, if I may humbly submit.

SUSPENSION OF SESSION

REP. SUAREZ. Mr. Speaker, I move for a one-minute suspension of the session.

THE DEPUTY SPEAKER (Rep. Abu). The session is suspended.

It was 2:42 p.m.

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RESUMPTION OF SESSION

At 2:44 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Abu). The session is resumed.

The d i s t i ngu i shed Minor i t y Leade r i s recognized.

REP. SUAREZ. Mr. Speaker, distinguished Sponsor, I am looking at the head of this particular office, Secretary Datu Abul Khayr Alonto. Is that correct, Your Honor?

REP. DIMAPORO (M.). Yes, that is correct, Mr. Speaker.

REP. SUAREZ. Also, Usec Janet M. Lopoz and Asec Romeo Montenegro, Mr. Speaker. I noticed that in the Board of Directors, sitting as members thereat, are the heavyweights of Mindanao: Zubiri, Del Rosario, Hataman; and even in some parts of Luzon because Governor Bichara is also here.

Well, with due respect, since most of these members and the line officers of this office are former Members of the House, Mr. Speaker, Mr. Sponsor, we do not have any questions on the part of the Minority on the proposed budget of the Mindanao Development Authority, considering that our good President is from Mindanao. (Applause)

THE DEPUTY SPEAKER (Rep. Abu). So, you are moving to terminate the interpellation?

REP. SUAREZ. On the part of the Minority.

THE DEPUTY SPEAKER (Rep. Abu). On the part of the Minority. How about the Majority, will you join the Minority?

REP. PALMA. On the part of the Majority, Mr. Speaker, we join the Minority in terminating the interpellation on the budget of the Mindanao Development Authority. With that, there being no other Member who wishes to interpellate or ask any questions, I move to terminate the period of interpellation and debate on the budget of the Mindanao Development Authority.

THE DEPUTY SPEAKER (Rep. Abu). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The period of interpellation and debate on the budget of Mindanao Development Authority is terminated. (Applause)

SUSPENSION OF SESSION

REP. PALMA. I move to suspend the session, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). The session is suspended.

It was 2:46 p.m.

RESUMPTION OF SESSION

At 2:46 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Abu). The session is resumed.

The Majority Leader is recognized.

SOUTHERN PHILIPPINES DEVELOPMENT AUTHORITY

REP. PALMA. Mr. Speaker, I move that we proceed to the period of interpellation and begin the consideration of the budget of the Southern Philippines Development Authority. We move to recognize the Gentleman from Lanao del Norte, the Hon. Mohamad Khalid Dimaporo, to sponsor the budget.

THE DEPUTY SPEAKER (Rep. Abu). The Hon. Mohamad Khalid Q. Dimaporo, our distinguished Sponsor of the budget of the Southern Philippines Development Authority, is recognized.

REP. PALMA. Mr. Speaker, to interpellate on the budget of the Southern Philippines Development Authority, we would move to recognize the Hon. Makmod D. Mending, Jr. for his interpellation.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Abu). The Hon. Makmod Mending is recognized to interpellate the Sponsor of the budget of the Southern Philippines Development Authority.

REP. MENDING. Thank you, Mr. Speaker. Assalamu alaikum.

Again, to my very good friend, would you accept some questions, just one or two questions, Mr. Speaker, distinguished Sponsor. Assalamu alaikum and good afternoon again.

REP. DIMAPORO (M.). Alaikum assalam. I am willing to answer any questions, Mr. Speaker.

REP. MENDING. Mr. Speaker, distinguished

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Sponsor, for the information of our constituents, may we know the mandate of the SPDA.

REP. DIMAPORO (M.). The general mandate of the SPDA is really to develop the different parts of Southern Philippines, specifically Mindanao—ideally bring not only development but also job generation in our region, and ideally also harness the different natural resources so that Mindanao will be known for its products. Specifically, Mr. Speaker, the mandate of the SPDA by law, Presidential Decree No. 1703, or by the SPDA Charter, is to initiate and undertake, by itself or otherwise, the development of all business projects of corporate economic nature in agriculture, power, infrastructure, energy, public utilities, land development, manufacturing, exploration and utilization of natural resources and other fields.

REP. MENDING. Thank you, Mr. Speaker, distinguished Sponsor. This Southern Philippines Development Authority, is it considered a GOCC or a government-owned and controlled corporation?

At this juncture, Deputy Speaker Abu relinquished the Chair to Deputy Speaker Sharon S. Garin.

REP. DIMAPORO (M.). Mr. Speaker, yes, the SPDA is considered a GOCC.

REP. MENDING. Thank you, distinguished Sponsor, Mme. Speaker. How much subsidy, if any, is it receiving from the national government, Mme. Speaker, distinguished Sponsor?

REP. DIMAPORO (M.). Mme. Speaker, the budget or subsidy from the national government is P53,505,000.

REP. MENDING. Thank you, Mme. Speaker. How much of that constitutes the PS, Mr. Sponsor?

REP. DIMAPORO (M.). Mme. Speaker, the entirety of the P53,505,000 is utilized for the PS and MOOE.

REP. MENDING. Thank you, Mme. Speaker, distinguished Sponsor. Are there any proposals coming from the SPDA to implement programs, activities or projects that were included in their original proposal submitted to the DBM and decided upon by the DBCC, Mme. Speaker, distinguished Sponsor?

REP. DIMAPORO (M.). Mme. Speaker, so far, there is none because prior to the assignment or the assumption of our administrator of the SPDA, our former colleague, former Rep. Abdulgani “Gerry” A. Salapuddin, the SPDA was deemed to be abolished until

it was revoked and lifted by Malacañang on September 14, 2018.

REP. MENDING. September 14, 2018?

REP. DIMAPORO (M.). Last Friday, Mme. Speaker.

REP. MENDING. Thank you, Mme. Speaker, distinguished Sponsor. Having known that fact, I believe that it is necessary for us to evaluate and to consider, perhaps to be able to fulfill the mandate of SPDA, that the necessary program funds be included in the subsidy for the SPDA, Mme. Speaker, distinguished Sponsor. Would you agree with this observation, Mme. Speaker?

REP. DIMAPORO (M.). Yes, Mme. Speaker, I agree with the Hon. Mak Mending.

REP. MENDING. Thank you, Mme. Speaker, distinguished Sponsor. That is all that I have to ask. All I hope is that, because of the very short period wherein which it was reactivated, there is a need for us to evaluate the matter and hopefully, Inshallah, in due time, we will be able to find funds for the programs of the SPDA.

Thank you, Mme. Speaker, distinguished Sponsor.

THE DEPUTY SPEAKER (Rep. Garin, S.) Thank you, Congressman Mending.

The Majority Floor Leader is recognized.

REP. PALMA. Mme. Speaker, for the Minority Leader, I move to recognize Rep. Anthony M. Bravo, PhD to interpellate on the budget on the Southern Philippines Development Authority.

I so move.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Hon. Tony Bravo is recognized.

REP. BRAVO (A.). Thank you, Mme. Speaker, distinguished Sponsor. There being no other Member from the Minority who wishes to ask questions, I move to terminate the interpellation and debate on the budget of Southern Philippines Development Authority.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, Hon. Tony Bravo.

The Majority Floor Leader is recognized.

REP. PALMA. In behalf of the Majority, Mme. Speaker, we also join the Minority in terminating the interpellation

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on the budget for the Southern Philippines Development Authority. With that, we therefore move to terminate the period of interpellation and debate on the budget of the Southern Philippines Development Authority.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

Congratulations! The Majority Floor Leader is recognized.

SUSPENSION OF SESSION

REP. PALMA. I move to suspend the session, Madam Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 2:53 p.m.

RESUMPTION OF SESSION

At 2:53 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

AUTONOMOUS REGIONAL GOVERNMENT IN MUSLIM MINDANAO

REP. PALMA. Mme. Speaker, we move to proceed to the period of interpellation and begin the consideration of the budget of the ARMM—the Autonomous Regional Government in Muslim Mindanao.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Majority Floor Leader is recognized.

REP. PALMA. Mme. Speaker, we move to recognize the Gentleman from Lanao del Norte, the Hon. Mohamad Khalid Q. Dimaporo, to sponsor the budget of the Autonomous Region in Muslim Mindanao.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Hon. Mohamad Dimaporo is recognized.

REP. DIMAPORO (M.). Thank you, Mme. Speaker, on behalf of the Autonomous Region in Muslim Mindanao. Today is a historic moment for

them because since the creation of the ARMM, they have been regularly and annually going to the House of Representatives to defend and propose their budget for the calendar year. With the passage of the Bangsamoro Organic Law, the budget being presented today will ultimately, God willing, be turned over to the Bangsamoro Transition Authority. So, on behalf of the Bangsamoro and the ARMM, I present here to the Plenary the 2019 budget of P31,117,000,000, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, the Honorable Mohamad Dimaporo.

The Majority Floor Leader is recognized.

REP. PALMA. Mme. Speaker, we would like to move to recognize the Hon. Shernee Abubakar Tan for her interpellation on the budget of the ARMM.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Hon. Shernee Tan is recognized.

REP. TAN (S.). Thank you, Mme. Speaker. Mme. Speaker, during the ARMM deliberations on the 2017 budget, this Representation asked from the honorable Speaker that Hadjiman S. Hataman-Saliman be directed to submit the following documents to this honorable Committee and they are the following: one, the demand letter sent by the Office of ARMM ARG to the different regional government agencies concerned; two, copies of the breakdown of disbursements; three, list of personnel who incurred unliquidated cash advances, including the demand letters both from the previous administrations up to the administration of Regional Governor Hataman; and, four, copies of the bank reconciliation statements of the ARMM government, which do not tally with the cash in bank balance.

In response, Mr. Hataman undertook to furnish this Body with the copy of the documents requested. However, until now, the Regional Governor has failed and continues to fail to furnish this Body and this Representation the copies of the documents so requested, thereby, effectively preventing this Representation from exercising her function, an act which principally affects my duties as a Member of the House.

Mme. Speaker, this has been the case of the ARMM government, which always seems to get away with the accountability for unimplemented projects and which funds allocated, therefore, remained to be accounted for. To continue, Mme. Speaker, the ARMM government still has the temerity and audacity to ask for more infrastructure projects, notwithstanding their failure to implement the 2017 and 2018 projects without offering a valid explanation for their failure to implement the

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same. Worse, the funds allocated, therefore, cannot be accounted for properly.

At this point, Mme. Speaker, may I call on the COA and the other concerned government agencies and our constituents in the ARMM to be vigilant to ensure that the people’s money goes to where it is due. Mme. Speaker, kahit kailan ay hindi naging intensiyon ng KUSUG TAUSUG Party-List na harangan ang pagkakaroon ng malaking pondo ng ARMM. Ang gusto lamang ng KUSUG TAUSUG Party-List ay siguraduhin na ang pondo na binibigay sa ARMM ay napupunta talaga sa taong-bayan.

Thank you, Mme. Speaker.Mme. Speaker, there being no more Members of the

Minority who wish to interpellate, I move to terminate the budget of the ARMM on the part of the Minority, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Yes, the interpellation on the budget of the ARMM.

The Majority Floor Leader is recognized.

REP. PALMA. Mme. Speaker, we join the Minority in terminating the deliberation of the budget of the ARMM and with that, we move that we terminate now the period of interpellation and debate on the same.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

Congratulations! (Applause)

SUSPENSION OF SESSION

REP. PALMA. I move to suspend the session, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 2:59 p.m.

RESUMPTION OF SESSION

At 3:02 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Leader is recognized.

COMMISSION ON FILIPINO OVERSEAS

REP. PALMA. Mme. Speaker, I move that we proceed with the period of interpellation and begin the consideration of the budget of the Commission on

Filipino Overseas. With that, Mme. Speaker, I would like to recognize the Hon. Federico “Ricky” S. Sandoval II to sponsor the budget of the Commission on Filipino Overseas.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection (Silence) The Chair hears none; the motion is approved.

REP. SANDOVAL. Good afternoon, Mme. Speaker, I am pleased to present the budget of the Commission on Filipino Overseas which has roughly about P114,000,000 for the consideration of the Body.

Thank you, Mme. Speaker.

REP. PALMA. Mme. Speaker, we now move to recognize the Minority Leader, the Hon. Danilo E. Suarez, to interpellate on the budget of the Commission on Filipino Overseas.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Honorable Suarez is recognized.

REP. SUAREZ. Thank you, Mme. Speaker. Will my good friend yield to some clarificatory questions, Your Honor.

REP. SANDOVAL. Certainly, Mme. Speaker.

REP. SUAREZ. Your Honor, in the news, there were some cases of problems with our domestic workers abroad, and no less than the President even went one time to personally evaluate what the problem is and try to help them. If you will recall, Your Honor, that semblance of concern of no less than the President coming to the rescue of an embattled OFW—I clearly recall one time during the presidency of our Speaker then, I think we were in Spain, and there was a call that a Filipina will be beheaded because I think the domestic Filipina helper killed her employer. The President, knowing that Kuwait is a monarchal state, asked the help of another monarch, who was the King of Spain, to call the Emir of Kuwait to help our embattled Filipina domestic worker. You know what the Emir said? He said, “If she will come here, then I will forgive her.” So, the President did just that—she flew to Kuwait from Spain and was able to save our embattled Filipina domestic worker. So, here, we can see the semblance on how important this office is because no less than the former President dropped what she was doing to pay attention to the serious problem of an embattled domestic worker.

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I hope the future leaders of this country will do the same, considering that the earnings of the OFWs, as I have said in the earlier interpellation, when they earn money, this is what we call “pure dollars,” with no import additives, Your Honor.

So, distinguished Sponsor, how much have we earned in terms of revenue that were remitted back to the country because I understand that you really cannot keep track of all these remittances because some are being handled by money changers, not sent through banks and so, cannot be accounted for. I would just like to get some data on official transactions wherein banks are involved.

REP. SANDOVAL. We are talking of $20 plus billion, Your Honor—$29 billion. This is the amount of the remittances of the overseas workers

REP. SUAREZ. For what year?

REP. SANDOVAL. For last year.

REP. SUAREZ. When you say $29 billion, this involves our domestics in Hongkong, in Europe, all over the world.

REP. SANDOVAL. Yes, all Filipinos overseas, Your Honor.

REP. SUAREZ. According to my member who is particularly also involved in OFW affairs, we are sending out 3,000 a day—is that correct—leaving for employment all over the world everyday?

REP. SANDOVAL. Yes. This is, Mme. Speaker, just for clarification— the Commission on Filipino Overseas is not the agency involved with our overseas Filipino workers. For the Commission on Filipino Overseas, its clientele are the Filipino permanent residents abroad, Filipinos who have been naturalized in other countries, Filipinos overseas who hold dual citizenships, Filipino spouses and their partners who are foreign nationals, descendants of Filipinos overseas, the Filipino youth overseas exchange visitor program, and other Filipinos in Europe.

So, when we talk of our overseas Filipino workers, this is under the POEA and the OWWA. That is why this CFO only has a P114 million budget, out of which the Personnel Services is already P31 million, the MOOE is P71 million and the total Capital Outlays is only P11 million. But we hope to get the support of the Minority because there is another need of P87 million for their operations, Mme. Speaker.

REP. SUAREZ. I am looking at it distinguished Sponsor. Well, I do appreciate what was given to

me and I am reading it right now. I am just alarmed, distinguished Sponsor, Mme. Speaker, by this—that you have the OWWA which is a different agency that is supposed to be assisting or enhancing the potentials of this particular industry. Is there no redundancy or duplication of work here?

REP. SANDOVAL. There is no duplication of work, Mme. Speaker, but our understanding is that there is a pending bill proposing to consolidate all these services under one agency.

REP. SUAREZ. Can we not just come up with one office to handle all of these and then, somewhat, have satellite offices? At the outset, I can say that napakarami ho yata ng ating ahensiyang na ganito ang purpose and sometimes, this is too much and—maybe maliligaw iyong ating kababayan dahil hindi niya malaman kung saan siya pupunta kapag magka-problema siya.

REP. SANDOVAL. Tama po iyan, Mme. Speaker, and I think the Minority Leader has the same thinking as the President as he mentioned in his SONA that he wants all the services to be integrated into one. There is already a pending bill in Congress and also in the Senate, Mme. Speaker.

REP. SUAREZ. I understand that this administration has one particular program where it streamlines or compacts offices that have redundant functions. Kung minsan ho, Your Honor, may mga nangyari sa iba’t ibang administrasyon na para mabigyan lang ng puwesto, they create an office and sometimes, this does not become an asset and instead, this even becomes a liability.

Mme. Speaker, considering the importance of this particular office, I just would like to repeat, again, my concern of, maybe, streamlining all these functions to come up with just a single office with a single point of responsibility to handle our very important OFWs. I would like to end my interpellation on the proposed budget as there are other Members who may want to interpellate.

Thank you, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, the Honorable Suarez.

The Majority Floor Leader is recognized.

SUSPENSION OF SESSION

REP. PALMA. I move that we suspend the session, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S). The session is suspended.

It was 3:12 p.m.

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RESUMPTION OF SESSION

At 3:12 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Leader is recognized.

REP. PALMA. Mme. Speaker, I move that we now recognize the Hon. Antonio L. Tinio.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Honorable Tinio is recognized for his interpellation—no? Majority Leader, I do not think he is ready for his interpellation.

REP. SANDOVAL. Mme. Speaker, maybe the Honorable Tinio would like to terminate the discussion on the budget of the CFO.

THE DEPUTY SPEAKER (Rep. Garin, S.). There is a special request for you, Honorable Tinio.

REP. TINIO. Mme. Speaker, I did not signify an intention to interpellate on the budget of the Commission on Filipino Overseas. However, let us leave it at that, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, Honorable Tinio.

The Minority Leader is recognized.

REP. SUAREZ. Mme. Speaker, on behalf of the Minority, we do not have any more objection or questions to be raised on the proposed budget of this particular office. On behalf of the Minority, I move to terminate the interpellation and debate on the budget of the CFO.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, Honorable Suarez.

The Majority Leader is recognized.

REP. PALMA. We join the Minority, Mme. Speaker, and with that, we move to terminate the period of interpellation and debate on the budget of the Commission on Filipino Overseas.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

Congratulations!

REP. SANDOVAL. Thank you, Mme. Speaker. Maraming Salamat.

SUSPENSION OF SESSION

REP. PALMA. I move that we suspend the session, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S). The session is suspended.

It was 3:14 p.m.

RESUMPTION OF SESSION

At 3:23 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Leader is recognized.

PRESIDENTIAL COMMISSION FOR THE URBAN POOR

REP. DEFENSOR. Mme. Speaker, I move that we take up the budget of the Presidential Commission for the Urban Poor.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

REP. DEFENSOR. Mme. Speaker, to sponsor this budget, we have the Gentleman from the First District of Iloilo, the Hon. Oscar “Richard” S. Garin Jr.

I move that he be recognized.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; motion is approved.

The Hon. Oscar Garin is recognized.

REP. GARIN (R.). Mme. Speaker, with me here is the Chairman of the PCUP, Atty. Toto Felongco. The proposed New Appropriations for Fiscal Year 2019 of the PCUP is P178.095 million, exclusive of retirement and life insurance premiums of P7.718 million. There is an increase of P10.322 million or 1.05 percent.

The Sponsor is now ready to clarify if there are some questions.

THE DEPUTY SPEAKER (Rep. Garin, S.). Before we proceed, we would like to acknowledge the presence in the gallery of our guests, the family of the Presidential Commission for the Urban Poor. Thank you for coming.

The Majority Leader is recognized.

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REP. DEFENSOR. Mme. Speaker, first to interpellate on this budget, we have the Gentleman from ANAKPAWIS Party. I move that we recognize the Hon. Ariel “Ka Ayik” B. Casilao.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Honorable Casilao is recognized. Please proceed.

REP. CASILAO. Thank you, Mme. Speaker. Is the distinguished Sponsor willing to answer some questions?

REP. GARIN (R.). I am willing to answer, Mme. Speaker.

REP. CASILAO. For the 2019 budget, may I know from the PCUP its role in the supposed impact and effect to the thousands of families that will be affected by the NLEX-C5 North Link Project. I believe, Mme. Speaker, distinguished Sponsor, that Segment 8.2 of the North Link C5 Project covers or is part of the pet projects under the Build, Build, Build Program. However, in the reports reaching this Representation, a sketchy 55,000 families will be affected by this project. Now, on the part of the PCUP, what are the actions currently undertaken and in the future, to perform the functions of the PCUP?

REP. GARIN (R.). Mme. Speaker, the PCUP is now doing its social preparation and at the same time, the socio-economic profiling. For the information of the Gentleman, the PCUP is also preparing the relocation of those urban poor who would be affected.

REP. CASILAO. With that, how many families are affected in the course of the social profiling and the efforts made by the PCUP?

REP. GARIN (R.). More or less, Mme. Speaker, there are around 20,000 families.

REP. CASILAO. It is still in the process and probably, it will still decrease.

REP. GARIN (R.). Yes, that is still ongoing, Mme. Speaker.

REP. CASILAO. Now, is it my understanding, from a report to my office, that the PCUP is also presenting now a supposed plan offering options to the people being interviewed in the process of collating the socio-economic profile of the affected residents? Is it correct or does the PCUP confirm that they are presenting

options: one, in-city relocation; two, relocation sites outside of areas to be affected by the development; and three, offers of payment but with no specific amount stated. May I know from the PCUP or will the PCUP confirm this information being offered to the residents while being interviewed.

REP. GARIN (R.). Yes, Mme. Speaker. In fact, the PCUP is also doing its planning on the rehabilitation and at the same time, on the relocation of our urban poor. The PCUP office is also willing to give copies on these to the honorable Gentleman if he so desires.

REP. CASILAO. Of course, this is a project led by the DPWH, but in the actual implementation, the information given to my office is that among the options being presented to the affected families, one is in-city relocation. Will the PCUP confirm that there are sites in the affected areas to be developed that there will be in-city or on-site relocation?

REP. GARIN (R.). The project is initiated by the Department of Public Works and Highways, and the PCUP is assisting those affected. At the same time, the PCUP is also looking for areas, especially the nearby areas where they are originally located.

REP. CASILAO. I presume that there is a planned on-site relocation.

REP. GARIN (R.). Yes, that is correct, Mme. Speaker. There is a plan.

REP. CASILAO. Can the plan accommodate the prospective affected families?

REP. GARIN (R.). Definitely, we cannot accommodate all of them and that is why the PCUP is looking for areas where they can be relocated, especially the nearby areas, for those affected.

REP. CASILAO. May I know the percentage of the absorptive capacity of on-site relocation, in-city relocation and outside city relocation.

REP. GARIN (R.). We will check, Mme. Speaker, because as of now the project is still ongoing. I will get the numbers, the percentages, from their office.

REP. CASILAO. That is it for now, Mme. Speaker. I will wait for the documents to be submitted by the distinguished Sponsor.

Thank you very much.

REP. GARIN (R.). Mme. Speaker, just as estimate

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number on the areas which can accommodate 50 percent. Just the estimate.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you.

The Majority Leader is recognized.

SUSPENSION OF SESSION

REP. DEFENSOR. I move for a suspension of the session, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 3:32 p.m.

RESUMPTION OF SESSION

At 3:37 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Leader is recognized.

REP. SAVELLANO. Mme. Speaker, I move that we recognize the distinguished Minority Leader, Cong. Danilo E. Suarez, from the Third District of Quezon.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Honorable Suarez is recognized.Please proceed.

REP. SUAREZ. Thank you, Mme. Speaker. Mme. Speaker, distinguished Sponsor, I have some

questions to ask. Can the distinguished Sponsor yield to some interpellations?

REP. GARIN (R.). Yes, Mme. Speaker.

REP. SUAREZ. What is the threshold before an individual can be identified as poor?

REP. GARIN (R.). According to the NEDA, a family of five must have P44,000 monthly.

REP. SUAREZ. It is 44,000?

REP. GARIN (R.). Yes, P44,000 for one family with five members.

REP. SUAREZ. So, a family of five earning P44,000 per annum. Is that correct?

REP. GARIN (R.). That is monthly.

REP. SUAREZ. Iyon ang threshold na sinasabi natin kapag ikaw ay identified as poor.

REP. GARIN (R.). That is the poverty line indication.

REP. SUAREZ. Who set that guideline, Mme. Speaker, distinguished Sponsor?

REP. GARIN (R.). Mme. Speaker, that guideline is according to the NEDA.

REP. SUAREZ. In our present state, what is the percentage of our urban poor as compared to our population?

REP. GARIN (R.). It is 21.6 percent poverty incidence.

REP. SUAREZ. Who are considered poor.

REP. GARIN (R.). Yes, Mme. Speaker.

REP. SUAREZ. When you are identified as poor, do you eat a two-square meal a day?

REP. GARIN (R.). Mme. Speaker, as we have observed, they always have three meals a day. If you ask about the basic meal of rice, some do not have rice in a day but basically, they usually eat three times a day. Some poor families have only one meal with rice and for others, they do not even have rice.

REP. SUAREZ. Well, precisely, the reason I am questioning, Mme. Speaker, Your Honor, because the fact is that we are here to approve a proposed budget for a commission to address the urban poor. From the term alone, it is urban. How about rural? Do we have Presidential Commission for the Rural Poor?

REP. GARIN (R.). The PCUP also covers the informal settlers in the rural areas.

REP. SUAREZ. So, there is no existing commission that is addressing the problem.

REP. GARIN (R.). There is no existing commission for that purpose, Mme. Speaker.

REP. SUAREZ. I understand that in this presented budget, this Commission also handles relocations in areas where there are demolitions in terms of informal settlers. Am I correct there, Mme. Speaker?

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REP. GARIN (R.). Yes, Mme. Speaker.

REP. SUAREZ. What assistance are you providing when there are demolitions?

REP. GARIN (R.). Mme. Speaker, Executive Order No. 82 states that the PCUP serves as the direct link of the urban poor to the government in policy formulation and program implementation to address their needs, and to accredit legitimate urban poor organizations for the purpose of representation in the formulation of recommendations to the President. Another one is to undertake social preparation activities related to asset reform, human development and basic social services, employment and livelihood and other programs of the government for the urban poor, Mme. Speaker.

REP. SUAREZ. What will be the threshold of cities or towns that will be considered urban? I would imagine that the National Capital Region has already been classified as urban. How about those areas outside the National Capital Region?

REP. GARIN (R.). We do not handle the towns because it is the National Anti-Poverty Commission that handles them. This is just our limited information, Mme. Speaker, because we got some data from the DSWD. Based on the Asian Development Bank report on the basic needs of poor individuals in the urban area, they should have at least P200 per day per head. In the province, they should have at least P100 per day per head. That is only the survival rate, Mme. Speaker. This is information that we got from other agencies or departments.

REP. SUAREZ. When there will be demolitions of areas occupied by informal settlers, do they seek clearance from this office or coordinate, at least?

REP. GARIN (R.). Yes, Mme. Speaker, the PCUP coordinates and conducts free demolition conferences, Mme. Speaker.

REP. SUAREZ. What is the lead time given to the office before an actual demolition takes effect?

REP. GARIN (R.). Mme. Speaker, it depends like, for example, the number of affected families and at the same time on the response made by the local or national government agencies. There is really no definite lead time, Mme. Speaker.

REP. SUAREZ. When your office has been informed that there is no more recourse because the landowner is going to do some developments in the area, a demolition crew will be deployed, people with

trunches, teargas, et cetera, do you go to that particular area and inform them about this forthcoming event, distinguished Sponsor, Mme. Speaker?

REP. GARIN (R.). Yes, Mme. Speaker, the PCUP does consultation and on the day of demolition, sends its representative to make sure that the demolition is being handled properly because the demolition should be done in a humane manner, with humane considerations. For the owners, we prohibit them to utilize heavy equipment and private armies. That is what the PCUP should see to it, especially during the demolition.

REP. SUAREZ. How long has the head of PCUP, distinguished Sponsor, been handling this office?

REP. GARIN (R.). The head of this office has just been appointed February this year, Mme. Speaker.

REP. SUAREZ. During his call, were there some demolitions that have happened?

REP. GARIN (R.). Yes, Mme. Speaker.

REP. SUAREZ. Were there any physical casualties?

REP. GARIN (R.). During his incumbency, there was none, Mme. Speaker.

REP. SUAREZ. How about before or prior to that?

REP. GARIN (R.). Mme. Speaker, prior to the new leadership of the PCUP, there were reports of incidents, especially during the time of previous administration.

REP. SUAREZ. So, there were casualties? Meaning, there were violent dispersals and some people were shot or something. Is that correct?

REP. GARIN (R.). There were some violent reactions experienced by the PCUP, but that was a long time ago and not within the …

REP. SUAREZ. Did the families get compensation for this? Were they given any amount of assistance in terms of cash?

REP. GARIN (R.). They were given assistance, Mme. Speaker, by the other departments of the government. You know, with the limited resources of the PCUP, we do not have assistance programs.

REP. SUAREZ. So, dito ho sa pino-propose budget ninyo, wala kayong sini-set aside na buffer amount,

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that if there were any demolition efforts at mayroong namatay, mayroon kayong pangbigay. Wala kayo noon?

REP. GARIN (R.). Wala po, Mme. Speaker, kasi basically, the PCUP is a policymaking body under the Office of the President.

REP. SUAREZ. Mme. Speaker, I think some of the questions of this Representation in behalf of the Minority had been answered, though not really satisfactory because there were a lot of gray areas coming from the office that he is sponsoring. Maybe in the next series of hearings, we can streamline or make some improvements on this particular office, considering its importance.

Mme. Speaker, on behalf of the Minority, we do not have any more questions on the proposed budget of the Presidential Commission for the Urban Poor.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you.

The Majority Leader is recognized.

REP. SAVELLANO. Mme. Speaker, we join the Minority in terminating the period of interpellation and debate on the budget of the Presidential Commission for the Urban Poor.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

Congratulations! (Applause)The Majority Leader is recognized.

SUSPENSION OF SESSION

REP. SAVELLANO. I move to suspend the session, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 3:52 p.m.

RESUMPTION OF SESSION

At 3:52 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Leader is recognized.

COMMISSION ON ELECTIONS

REP. SAVELLANO. Mme. Speaker, I move that

we proceed with the period of interpellation and begin the consideration of the budget of the Commission on Elections.

THE DEPUTY SPEAKER (Rep. Garin, S.). What budget are we considering?

REP. SAVELLANO. The COMELEC, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). For the COMELEC. Thank you.

Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Majority Leader is recognized.

REP. SAVELLANO. Mme. Speaker, I move that we recognize the Sponsor, the Hon. Khalid Dimaporo.

THE DEPUTY SPEAKER (Rep. Garin, S.). The Hon. Mohamad Khalid Q. Dimaporo is recognized. Please proceed.

REP. DIMAPORO (M.). Thank you, Mme. Speaker.

I would like to present to the floor the 2019 budget for the Commission on Elections for a total amount of P10,079,929,000, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, the Honorable Khalid Dimaporo.

Before we proceed with the interpellation, I would like to welcome the COMELEC family for their presence here today. The Majority Leader will please proceed.

REP. SAVELLANO. Mme. Speaker, I move that we recognize the Representative from the AMIN Party-List, Cong. Makmod D. Mending Jr.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Hon. Mak Mending is recognized.

REP. MENDING. Thank you, Mme. Speaker.Assalamu alaikum again. Good afternoon. Our

very good friend from Lanao del Norte, I am sure, will accept questions.

REP. DIMAPORO (M.). Yes, Mme. Speaker. It is always a pleasure to accept questions from the Representative of the AMIN Party-List.

REP. MENDING. Mme. Speaker, my solitary question pertains to the upcoming plebiscite on

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January 31 on whether to approve or disapprove Republic Act No. 11054 or the Bangsamoro Organic Law. That is the only question that I am asking, Mme. Speaker, distinguished Sponsor. Do we have funds or appropriations intended to be used for the plebiscite on January 31, Mme. Speaker, distinguished Sponsor?

REP. DIMAPORO (M.). Mme. Speaker, as far as the Bangsamoro Organic Law is concerned, it was enacted or signed as a Republic Act after the SONA, after the President submitted his proposed budget for 2019 this June. Unfortunately, the budget for the plebiscite, which is scheduled sometime January, is not found in our GAA, Mme. Speaker.

REP. MENDING. Thank you, Mme. Speaker, distinguished Sponsor. May we know from the Commission on Elections how much is necessary to be able to conduct the plebiscite?

REP. DIMAPORO (M.). Mme. Speaker, the total amount is P857 million for the plebiscite on the Bangsamoro Organic Law.

REP. MENDING. Mme. Speaker, distinguished Sponsor, thank you. I believe there is enough time for us here in the House to be able to put, in our General Appropriations Bill, the necessary funds or appropriations for its conduct to ensure that the people, our constituents, will be able to exercise what we call a sovereign will. To be able to determine the sovereign will of the constituents involved in this exercise, we have to ensure that there are appropriations necessary to cover the expenses for the plebiscite.

Mme. Speaker, distinguished Sponsor, are we assured that the General Appropriations Bill of the House is going to contain the necessary appropriations, Mme. Speaker, distinguished Sponsor?

REP. DIMAPORO (M.). Mme. Speaker, I am one with the Hon. Mak Mending in saying that the House of Representatives, especially the Seventeenth Congress under the leadership of our Speaker Gloria Macapagal-Arroyo, must fully support the wish of our President for peace to reign in our region of Mindanao. Unfortunately, if we will not provide adequate funding to have a plebiscite for the Bangsamoro Organic Law to be ratified, ideally, so that the Moro people inside the ARMM can finally experience or have the promise fulfilled that there will be a Bangsamoro within the time of President Duterte—I agree with the Hon. Mak Mending of AMIN Party-List that the Seventeenth Congress, in this budget deliberation, should resolve the funding shortage of P857 million in the COMELEC for this. In the event that this does not happen, I have been told that the COMELEC can source out some

of this amount from their savings from the budget for the barangay elections, and the rest will be up to Malacañang to hopefully resolve. I put my faith in our President that he will not fail the Moro people and he will not fail the Bangsamoro, Mme. Speaker.

REP. MENDING. Mme. Speaker, distinguished Sponsor, thank you very much, and we will expect that on January 21, we will definitely have a plebiscite for the ratification of Republic Act No. 11054.

Assalamu alaikum warahmatullahi ta’ala wabarakatuh.

REP. DIMAPORO (M.). Thank you very much.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, Honorable Mending.

The Majority Leader is recognized.

REP. SAVELLANO. Mme. Speaker, I move that we recognize the Gentlelady from ACT TEACHERs Party-List in the person of Cong. France L. Castro.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Hon. France Castro is recognized.

REP. CASTRO (F.L.). Maraming salamat po, Mme. Speaker. Mme. Speaker, will the Hon. Khalid Dimaporo yield to some questions regarding the COMELEC.

REP. DIMAPORO (M.). Yes, Mme. Speaker, I am willing to entertain any questions.

REP. CASTRO (F.L.). First of all, Mme. Speaker, I have some observations about the Commission on Elections’ proposed 2019 budget, and a big observation is a budget cut of 36.36 percent in the total funds proposed by the DBCC for the COMELEC which is a constitutional body granted with fiscal autonomy.

So, my number one observation is on the jurisprudence on the Constitutional and Fiscal Autonomy Group—the Judiciary, Civil Service Commission, Commission on Audit, Commission on Elections, and the Office of the Ombudsman are granted fiscal autonomy by the Constitution. The fiscal autonomy enjoyed by the Constitutional and Fiscal Autonomy Group is an aspect of the member offices’ independence guaranteed by the Constitution, as their independence is a necessary component for the existence and survival of our form of government and that is in the COA vs. MARINA in January 13, 2015.

Mme. Speaker, the Constitution itself grants the Judiciary fiscal autonomy in the handling of its budget and resources. Full autonomy, among others,

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contemplates the guarantee of full flexibility of the allocation and utilization of the Judiciary’s resources based on its own determination of what it needs.

The Court, thus, has recognized authority to allocate and disburse such sums as may be provided or required by the law in the course of the discharge of its function.

So, that is the COA opinion on the computation of the appraised value of the properties purchased by the retired Chief and Associate Justices of the Supreme Court on July 31, 2012.

In essence, Mme. Speaker, fiscal autonomy entails freedom from outside control and limitations, other than those provided by law. It is the freedom to allocate and utilize funds granted by the law, in accordance with law and pursuant to the wisdom and dispatch its needs may require from time to time.

That is from the CHR vs. CHREA, November 25, 2004.

The fiscal autonomy of the CFAG member offices has been interpreted in several cases. Number one, on the automatic and full release of appropriations approved under the GAA with no deductions, and the authority to formulate and implement the organizational structure of their respective offices and determine the compensation of their personnel. So, in the 2018 GAA versus the 2019 NEP, we have, Mme. Speaker, cuts and zero allocations for several Personnel Benefits up to 18.73 percent. For example, Mme. Speaker, overtime pay is down by 18.73 percent, lump sum for the filling-up of positions is down by 13.31 percent, the RLIP is down by 9.27 percent, and it is zero per diems, benefits under the Magna Carta for Public Health Workers, other personnel benefits, CNA incentives. The last allocation was in 2017.

So, may I know, Mme. Speaker, why is it that there are cuts and zero allocations for those items mentioned? If it is to enjoy the fiscal autonomy, why is it that the Commission on Elections approved the decrease or the zero allocations on the identified items?

REP. DIMAPORO (M.). Mme. Speaker, I think it may not be the proper use of words to say that the COMELEC approved these cuts. As a matter of fact, I think they are trying to reject these cuts and hopefully, these will be restored by the Department of Budget and Management, if not fixed in the House of Representatives.

REP. CASTRO (F.L.). So, may I now, therefore, ask the support of our distinguished Sponsor, Mme. Speaker, so that these cuts by the DBCC could be restored to the budget of the COMELEC?

REP. DIMAPORO (M.). Yes, Mme. Speaker. For the information of the Body, as far as the COMELEC is concerned, for Fiscal Year 2019, the COMELEC submitted to the Department of Management a proposed budget of roughly P15.9 billion. What was approved in our NEP is only P6 billion. That is a big slash, Mme. Speaker. For us to have a successful, orderly and peaceful elections, at the very least, the COMELEC needs P8 billion.

So, under the leadership of our Speaker Gloria Macapagal-Arroyo, I hope that we can convince the honorable Secretary Ben Diokno that if he has to slash budgets, let us not be cheap when it comes to our national elections.

Thank you, Mme. Speaker, and I join the Hon. France Castro in her manifestation that we should not slash so much from the COMELEC.

REP. CASTRO (F.L.). Thank you, distinguished Sponsor. And there are more, Mr. Sponsor. Please note that there is also no allocation for the honoraria of the BEI under the ESRA Law. We know that next year, we will have a midterm election but there is no allocation for that.

REP. DIMAPORO (M.). Yes, Mme. Speaker, that is true. The proposed budget for 2019 under the NEP is not compliant to the ESRA Law.

REP. CASTRO (F.L.). Okay. There is also a less than one-percent increase for the PERA, Representation Allowance, Transportation Allowance, Cash Gift, PEI, Pag-IBIG and ECIP contributions.

REP. DIMAPORO (M.). Yes, Mme. Speaker, again, that is all true and I hope that will all be remedied under our budget deliberations here in the Seventeenth Congress.

REP. CASTRO (F.L.). Also, Mme. Speaker, there are also cuts or slashes in the MOOE of the Commission on Elections, for example, the Rent/Lease Expenses is down by 98.35 percent; the Transportation and Delivery Expenses is down by 53.14 percent; Printing and Publication Expenses is down by 25.8 percent; and Utility Expenses is down by 4.46 percent. So, Mme. Speaker, do these MOOE items include our expenses for the upcoming elections?

At this juncture, Deputy Speaker Garin (S.) relinquished the Chair to Deputy Speaker Linabelle Ruth R. Villarica.

REP. DIMAPORO (M.). Yes, Mme. Speaker, that is true. There are slashes, slashes, slashes, and more slashes, so much so that the COMELEC has been

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brought down to the bare minimum, with very minimal margin for error, to establish and operate our national elections. But, as far as I understand, our COMELEC, our Chairman and all of those in the COMELEC family will do their very best, will sacrifice to do their very best, to ensure that the national elections will succeed. Of course, they can do much better if they will get the needed support from the House of Representatives, Mme. Speaker.

So, I join the Hon. France Castro in saying that sana lang, these cuts will be reinstated.

REP. CASTRO (F.L.). Maraming salamat, Mr. Sponsor. Mme. Speaker, just for the record, there is an increase of 72 percent in the Capital Outlays, but it is mainly due to the increase in the Machinery and Equipment Outlay budget by 135 percent. Sa Infrastructure Outlay, it was reduced by 100 percent. So, may we ask the good Sponsor about the details of this Capital Outlays.

REP. DIMAPORO (M.). Mme. Speaker, that is all related to the procurement of the ICT needed for next year’s national elections.

REP. CASTRO (F.L.). Okay. So, may we ask the COMELEC, Mr. Sponsor, Mme. Speaker, if we will still use Smartmatic next year?

REP. DIMAPORO (M.). Yes, Mme. Speaker. Unfortunately, with the budget given, the only option that the COMELEC has is to procure and buy the PCOS machines or the Smartmatic machines that were utilized in last 2016 national elections.

REP. CASTRO (F.L.). Mme. Speaker, mayroon po akong worry doon sa paggamit natin muli ng Smartmatic dahil nga alam naman natin iyong naging performance ng provider na ito. Baka puwedeng makasiguro, kung may time pa, na ang ating COMELEC, Mme. Speaker, ay mapag-isipan iyong alternative para dito.

REP. DIMAPORO (M.). Mme. Speaker, I will submit to anything that the Hon. France Castro will ask, and if there are documents that are required from the COMELEC, I am sure that the COMELEC—and I will commit the COMELEC family—will provide the necessary documents. If there are concerns on the implementation of the national elections because of the use of Smartmatic, the COMELEC will properly address them to the Hon. France Castro. Mme. Speaker, I was just informed earlier that what will be different in the 2019 national elections is that the PCOS or the Smartmatic machines will be wholly run by the COMELEC technical personnel.

REP. CASTRO (F.L.) Okay. Last question, Mme. Speaker, about the conduct of elections next year. So, iyong budget po bang P8 billion for the elections, would that include iyong mga trainings noong ating mga BEI or iyong honoraria lang po?

At this juncture, Deputy Speaker Villarica relinquished the Chair to Deputy Speaker Sharon S. Garin.

REP. DIMAPORO (M.). Yes, Mme. Speaker, if the budget will be increased from P6 billion to P8 billion, it will include the trainings needed.

REP. CASTRO (F.L.) Okay. So iyon lang po, Mme. Speaker, distinguished Sponsor. Thank you very much.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, Hon. France Castro.

The Majority Leader is recognized.

REP. SAVELLANO. Mme. Speaker, I move that we recognize our Minority Leader, Cong. Danilo E. Suarez, of the Third District of Quezon.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Honorable Suarez is recognized.

SUSPENSION OF SESSION

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 4:12 p.m.

RESUMPTION OF SESSION

At 4:13 p.m., the session was resumed

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Minority Leader is recognized. The Honorable Suarez, please proceed.

REP. SUAREZ. Thank you, Mme. Speaker. Will my distinguished colleague yield to some clarificatory questions, Mme. Speaker?

REP. DIMAPORO (M.). Mme. Speaker, I yield to our Minority Leader, Manong Danny Suarez.

REP. SUAREZ. The utilization rate on the budget of this office in 2017 was quite low, Mme. Speaker, at

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46.2 percent with P6.57 billion in unused funds, even lower than 2016 rate of 59.7 percent. May we know the rationale behind this?

REP. DIMAPORO (M.). Mme. Speaker, as of September 11, 2018, the utilization rate of the COMELEC is 43 percent, Mme. Speaker.

REP. SUAREZ. That is why I am saying, bakit napakababa pa rin ng utilization rate nila?

REP. DIMAPORO (M.). Mme. Speaker, the reason for the low utilization rate is that the remaining amount is part of the preparations for the national elections next year. According to the COMELEC, they will utilize the remaining funds in the last quarter of this year.

REP. SUAREZ. On their performance on the registration of voters in 2017, they imposed a target of 7.9 million registrants, distinguished Sponsor, Mme. Speaker. However, the actual registrants reached only 2,661,000 for regular voters and 964,000 for the Sangguniang Kabataan. May we know the reason for this huge deficiency on actual registrants, distinguished Sponsor?

REP. DIMAPORO (M.). Mme. Speaker, what the COMELEC did was they provided all the different facilities and opportunities for the projected number of voters to register. Unfortunately, the number stated are the only ones who registered, and the position of the COMELEC is they cannot force or coerce voters to register. So, perhaps, it is due to non-interest in next year’s elections.

REP. SUAREZ. I am somewhat confused by this. Do you have receivables? Does the COMELEC have receivables in the amount of about P140 million?

REP. DIMAPORO (M.). Mme. Speaker, the closest that they have to receivables are the unliquidated cash advances, but those are properly recorded and will be liquidated as soon as possible, Mme. Speaker.

REP. SUAREZ. This is somewhat disturbing, distinguished Sponsor. It says here on our data that there is also P6 million in unrecorded expenses on the procurement of commonly- used supplies and materials, and also a balance of P132 million as of May 2016 due from local government units, which was inaccurate and unreliable due to the inclusion of a subsidiary ledger which was for reconciliation with a negative balance of P6.7 million, wherein details could not be traced. Has the COMELEC resolved this matter, Mme. Speaker?

REP. DIMAPORO (M.). Mme. Speaker, the

COMELEC has not fully resolved the matter but the reconciliation of these advances and accounts is still ongoing. Before the end of the year, their target is to have them properly accounted for, Mme. Speaker.

REP. SUAREZ. Mme. Speaker, distinguished Sponsor, the 2016 elections was tainted with allegations of cheating, manipulation and barbarous election protests—28 in the House of Representatives, one in the Senate, 14 for local positions, and 1 for the second highest position in the country. What is the current status of resolution on these protests?

REP. DIMAPORO (M.). Mme. Speaker, all of the said protests are still pending with the COMELEC.

REP. SUAREZ. A good number of issues—for instance, on the Vice-President, what is its status right now?

REP. DIMAPORO (M.). Mme. Speaker, the PET supposedly has already, more or less, discovered that there is very little or no significant difference between the election returns and the certificates of canvass.

REP. SUAREZ. I will take that issue later on, distinguished Sponsor. I just would like to know, as raised earlier by our colleague here on the status of the PCOS machines, are we going to use these again in the coming elections?

REP. DIMAPORO (M.). Yes, Mme. Speaker, the PCOS machines used in 2016 will be used in the 2019 national elections.

REP. SUAREZ. Can we be assured that this is PCOS, not “hocus-PCOS,” distinguished Sponsor?

REP. DIMAPORO (M.). Mme. Speaker, the only thing I can assure you is that the COMELEC will do their best and dutifully operationalize their mandate to deliver the national elections and God willing, there will be no “hocus-PCOS,” Mme. Speaker.

REP. SUAREZ. For my learning curve, distinguished Sponsor, Mme. Speaker, how many Commissioners do we have in the COMELEC?

REP. DIMAPORO (M.). Mme. Speaker, we have six Commissioners here and one Chairman present, Mme. Speaker.

REP. SUAREZ. That is the mandate of the COMELEC, six Commissioners.

REP. DIMAPORO (M.). That is true, Mme. Speaker.

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REP. SUAREZ. That includes the Chairman.

REP. DIMAPORO (M.). Yes, that includes the Chairman, Mme. Speaker.

REP. SUAREZ. Out of these six Commissioners, may this Representation be educated on who appointed them—one by one.

REP. DIMAPORO (M.). Mme. Speaker, the Chairman was appointed by our President Duterte. There are three new Commissioners who were appointed by President Duterte, and the remaining three Commissioners were appointed by President Aquino.

REP. SUAREZ. So, 3-3.

REP. DIMAPORO (M.). Yes, 3-3 plus one Chairman.

REP. SUAREZ. Ang Chairman ay appointed ng Pangulong Duterte? Are you sure about that?

REP. DIMAPORO (M.). Yes, Mme. Speaker. He was appointed as the Chairman by President Duterte, but he was appointed as a Commissioner by President Aquino.

REP. SUAREZ. By President Aquino?

REP. DIMAPORO (M.). By President Aquino, yes, Mme. Speaker.

REP. SUAREZ. In my previous statement, I said that the elections were tainted with allegations. There was one issue in the Senate, the close fight between the number 12 candidate, former Justice Secretary Leila de Lima and coming in at a close second, I think, was Tolentino if I am not mistaken. I clearly recall, with concern, the footage of the wife of former Chairman Bautista in two talk shows stating that this money, let me quote, “This money, which is about P240 million, is all I ask for the future of my children.” Are the Commissioners aware of this statement of the wife of the former Chairman of the COMELEC? Can you ask your principal if they heard of that?

REP. DIMAPORO (M.). Mme. Speaker, the Commissioners have no personal knowledge of that statement.

REP. SUAREZ. Alam nila ang nangyaring iyon, iyong sinabi, but right now, we do not know the whereabouts of former Chairman Bautista.

REP. DIMAPORO (M.). Mme. Speaker, they do not have any idea on his location.

REP. SUAREZ. So, if you can summarize the event, we will have elections in 2019. If everything goes well, the former Chairman will still be here, there will be no need for him to leave the country, hindi ho ba? Because we assume and maybe, we have an assurance na wala naman sigurong magiging dayaan sa susunod na eleksiyon?

REP. DIMAPORO (M.). Yes.

REP. SUAREZ. Hindi ho ba, distinguished Sponsor? Ngayon, iyong dating Chairman po, hindi na ho natin malaman kung nasaan. There were allegations that iyong kapatid niya na mayroong development bank, ay nag-apply ng increase in capitalization. Pagkatapos, iyong asawa niya, ang sinabi, “This money is for the future of my children. This is the only thing I ask from him. I do not care where he is going.” There was a love triangle involved—very colorful history, Your Honor.

So, it is very disturbing, Your Honor, that some of those involved in the proclamation of winners in the 2016 elections are still there. May I know, in the present line of Commissioners, who participated in the proclamation of the winning candidates then?

REP. DIMAPORO (M.). Mme. Speaker, may I again hear the question of the honorable Minority Leader.

REP. SUAREZ. Noon nag-declare ho tayo o nag-proclaim ng winners in the 2016 elections, gusto ko lang ho malaman kung sino pa sa mga Commissioners noon na hanggang ngayon ay nasa opisina pa ng COMELEC.

REP. DIMAPORO (M.). There are 4 Commissioners who were involved in the proclamation of the winners in the 2016 elections, Mme. Speaker.

REP. SUAREZ. So, 4 out of 6 Commissioners are still there?

REP. DIMAPORO (M.). It is 4 out of 7, Mme. Speaker.

REP. SUAREZ. So, 4 out of 7, and the election protest in the number two position, even as I ask this question, is still being heard, is part and parcel of what we call a continuous hearing. Is this under the PET, Presidential Electoral Tribunal, or the SET, the Senate Electoral Tribunal or?

REP. DIMAPORO (M.). For the Vice President, it is the PET that conducts the hearing.

REP. SUAREZ. So, it is the PET. Ito pong mga

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Commissioners natin, they participate in this hearing of the PET, distinguished Sponsor, Your Honor?

REP. DIMAPORO (M.). May I have the question repeated, Mme. Speaker.

REP. SUAREZ. Mayroon ho tayo ngayon kasing nag-file po ng protest, iyon pong supposedly losing candidate, at ang naghi-hear po niyan, as you have said, Mme. Speaker, Your Honor, is the Presidential Electoral Tribunal. Iyong mga incumbent Commissioners, do they attend this hearing?

REP. DIMAPORO (M.). Mme. Speaker, the Commissioners do not attend the hearing. It is the Supreme Court that handles the PET.

REP. SUAREZ. Walang ni isang Commissioner po na uma-attend sa PET? So, they are just resource persons kung mayroon pong hearing.

REP. DIMAPORO (M.). They do not participate in the PET, Mme. Speaker.

REP. SUAREZ. Noong nabuksan na ho iyong mga balota, Mme. Speaker, Your Honor, there were wrecked ballots, there were spoiled ballots, and some ballot boxes were boxes from supermarkets. These are alarming indications that nagkaroon po ng illegal acts. Ano ho ang position ng present or incumbent COMELEC on this issue?

REP. DIMAPORO (M.). Mme. Speaker, the position of the COMELEC is that, in the security and the management of these ballot boxes, by law, the Municipal Treasurer’s Office is wholly liable and so, if there has been any damage or maybe an illegal act, the position of the COMELEC is that the one who is liable is the Municipal Treasurer’s Office.

REP. SUAREZ. Dahil sa wala na ho ang mga ito sa kanila—but apparently, in some reports that reached this Representation and I am very much concerned about this, baka nga doon lang sa Municipal Treasurer’s Office na iyon, sa buong Pilipinas, ay inulan kaya nabasa dahil sa wala ho namang iba tayong kaso ng mga forms na nakaimbak na nabasa except that one. So, it is very uncomfortable for me that in this part of the Plenary, we are going to approve a budget wherein some of the Commissioners participated in the proclamation of what we say “tainted elections.”

REP. DIMAPORO (M.). Mme. Speaker, may I get again the question from the Minority Leader. With regard to the supposedly tainted ballot boxes, I am being told again that it is the liability or within the jurisdiction

or the responsibility of the Municipal Treasurer’s Office and if it happened only in one municipality, we would not really know unless we do a full inventory of all the Municipal Treasurer’s Offices nationwide. So, that was the reply from the COMELEC, Mme. Speaker.

REP. SUAREZ. So, 4 out of 7 Commissioners participated in the proclamation of the winning candidates of the 2016 elections. Am I correct there, distinguished Sponsor?

REP. DIMAPORO (M.). Yes, Mme. Speaker.

REP. SUAREZ. Iyong 4, including the Chairman.

REP. DIMAPORO (M.). Yes, Mme. Speaker.

REP. SUAREZ. The COMELEC Chairman then was Chairman Bautista.

REP. DIMAPORO (M.). Yes, Mme. Speaker.

REP. SUAREZ. Wala ho bang nagsabi man lang sa mga Commissioners na nandito that doon sa nangyaring bilangan, at six o’clock in the evening, a certain candidate was ahead by 1,000,071 votes pero pagdating ng umaga ay talo na siya by 217 votes. Iyong probability ho did not bother them when they found out about this result?

REP. DIMAPORO (M.). Mme. Speaker, from my understanding, the COMELEC stands by the results of the previous 2016 elections.

REP. SUAREZ. Mme. Speaker, distinguished Sponsor, the Smartmatic’s local representative is a friend of mine. I do not have any doubt about the transparency of how the voting was conducted in 2016. No doubt—maayos po ang bilangan, maayos po ang paglalagay ng proseso, ng transmission. Ang problema po ay iyong proclamation. Ang tanong ko ho ay ito, Mme. Speaker, distinguished Sponsor: Kung alam ng mga taga-COMELEC na ang idi-declare nila ay hindi iyong sinabi ng Smartmatic, ano ho ang gagawin nila?

REP. DIMAPORO (M.). Mme. Speaker, if it is the position of the Vice President, it is Congress that does the proclamation, not the COMELEC.

REP. SUAREZ. No, ang point ko lang po ay ito: Alam po nila ang nangyari sa botohan kung sino ang nanalo, but at the end of the day, Smartmatic is not the one who is supposed to proclaim. It is the COMELEC. My point is that the COMELEC knew who really won in the 2016 elections and yet, the Chairman made a proclamation contrary to the result of the elections.

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REP. DIMAPORO (M.). Mme. Speaker, the COMELEC, once again, stands by the results of the Smartmatic, and I think their position is that the proclamation of the winning candidates was based on the results, again, of those Smartmatic machines.

REP. SUAREZ. Well, Mme. Speaker, distinguished Sponsor, with deep concern, I am sorry but I will have to move that we suspend the consideration of the proposed budget of the COMELEC until all of these issues are properly answered.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). The Majority Leader is recognized.

SUSPENSION OF SESSION

REP. SAVELLANO. Mme. Speaker, I move to suspend the session for a few minutes.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 4:36 p.m.

RESUMPTION OF SESSION

At 4:44 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Leader is recognized.

REP. SAVELLANO. Mme. Speaker, I move that we resume the consideration of the budget of the COMELEC, and I move that we recognize the Gentleman from the Second District of Caloocan City, Rep. Edgar R. Erice.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Honorable Erice is recognized. Please proceed.

REP. ERICE. Thank you, Mme. Speaker.Thank you, Majority Leader. May the Gentleman

from …

REP. DIMAPORO (M.). Lanao del Norte.

REP. ERICE. … Lanao del Norte yield to some questions.

REP. DIMAPORO (M.). Mme. Speaker, I yield.

REP. ERICE. Thank you. I was not supposed to interpellate on the budget of the COMELEC since I believe that the best elections that we ever had in this country was when we conducted automated elections. Noong nagkaroon po tayo ng eleksiyon na automated, nag-improve po ang transmission to canvassing to proclamation at naiiwasan po iyong maraming karahasan. Nawala iyong dagdag-bawas. Nawala po iyong maraming anomalya at pagkawala ng buhay tuwing halalan. Subalit, there were issues raised by the Minority Leader that I have to clarify with the Gentleman from Lanao del Norte. Ang unang katanungan ko po ay ito: Narinig ko po kanina na nasabi na ang nagpoproklama ng Pangulo at Pangalawang Pangulo ay ang COMELEC. Sa aking pagkakaalam, ang nagpoproklama po ng Pangulo at Pangalawang Pangulo ay ang National Board of Canvassers in a joint session of the House of Representatives and the Senate. Tama po ba iyon?

REP. DIMAPORO (M.). Mme. Speaker, that is correct.

REP. ERICE. Ang nagiging basehan po ng proklamasyon ng Pangulo at Pangalawang Pangulo ay ang mga Certificates of Canvass na nagmumula sa bawat probinsiya ng ating bansa at maging sa absentee voting centers sa ibang bansa. Tama po ba iyon?

REP. DIMAPORO (M.). Mme. Speaker, that is correct.

REP. ERICE. Kung kukwestyunin natin iyong proklamasyon ng Pangulo at ng Pangalawang Pangulo, ang ibig pong sabihin, ang kinukuwestyon natin dito ay hindi ang COMELEC kung hindi iyong National Board of Canvassers. Tama po ba iyon?

REP. DIMAPORO (M.). Mr. Speaker, that is correct.

REP. ERICE. Iyon lang po ang nais naming bigyan ng linaw dahil sa ngayon po ay may kasalukuyang protesta sa Presidential Electoral Tribunal na dinidinig na po. Sa palagay ko po, kung sinuman iyong may hinaing na natalo sa eleksiyon, sa PET po ang tamang venue para ito po ay pagdebatehan. Sa palagay ko rin po, ang bagay na ito ay hindi dapat makasagabal sa ating debate tungkol po sa budget ng Commission on Elections.

Salamat po.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, the Honorable Erice.

The Majority Floor Leader is recognized.

REP. SAVELLANO. Mme. Speaker, I move that

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we recognize the Gentleman from the Third District of Camarines Sur, Rep. Gabriel H. Bordado Jr.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Honorable Bordado is recognized. Please proceed.

REP. BORDADO. Mme. Speaker, thank you very much. I fully agree with the position taken by my colleague, the Hon. Edgar Erice of Caloocan City that, with due respect to the Hon. Danilo E. Suarez, if he will question the validity of the proclamation of the Vice President of the Republic of the Philippines, then he may as well question, Mme. Speaker, the validity of the proclamation of the President of the Republic of the Philippines. I believe that was clearly answered by our very intelligent Sponsor, and the COMELEC has also given its position on this issue, Mme. Speaker.

Thank you very much.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you.

The Majority Floor Leader is recognized.

REP. SALO. Mme. Speaker, I respectfully move that we suspend the consideration of the budget of the Commission on Elections.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Majority Floor Leader is recognized.

DEPARTMENT OF FINANCE

REP. VERGARA. Mme. Speaker, I respectfully move that we commence the consideration of the budget of the Department of Finance.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

REP. VERGARA. Before we proceed, Mme. Speaker, we would like to acknowledge the presence of the officials of the Department of Finance headed by the honorable Sec. Carlos G. Dominguez III.

THE DEPUTY SPEAKER (Rep. Garin, S.). The Majority Floor Leader is recognized. Before we proceed, let us give the COMELEC time to vacate their areas so that the DOF family can take their place.

SUSPENSION OF SESSION

REP. VERGARA. I move to suspend the session, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended. Thank you.

It was 4:50 p.m.

RESUMPTION OF SESSION

At 4:52 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Floor Leader is recognized.

REP. VERGARA. Mme. Speaker, I move that we resume the consideration of the budget of the Department of Finance.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Majority Floor Leader is recognized.

REP. VERGARA. Mme. Speaker, we would like to acknowledge the presence of the officials of the Department of Finance headed by their Secretary, Sec. Carlos G. Dominguez III, Usec. Gil S. Beltran, Usec. Karl Kendrick Chua, Usec. Bayani H. Agabin, Bureau of Customs Commissioner Isidro S. Lapeña, Bureau of Internal Revenue Dep. Commissioner Arnel Guballa, Bureau of the Treasury National Treasurer Rosalia V. De Leon, Bureau of Local Government Finance Executive Director Raymond Alvina, National Tax Research Center Executive Director Trinidad Rodriguez, Securities and Exchange Commission Chairman Emilio B. Aquino, Privatization and Management Office Officer Gerald Chan, Land Bank President Alex Buenaventura, and Development Bank of the Philippines President Cecille Borromeo.

THE DEPUTY SPEAKER (Rep. Garin, S.). We welcome all the officials from the DOF. We thank you for your presence today.

The Majority Floor Leader is recognized.

REP. VERGARA. Mme. Speaker, I move that we recognize the dashing Gentleman from the Second District of Albay, the Hon. Joey Sarte Salceda, to sponsor the budget of the Department of Finance and answer questions, if any.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is

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there any objection? (Silence) The Chair hears none; the motion is approved.

The Honorable Salceda is recognized. Please proceed.

The Majority Leader is recognized. Who is our first interpellator?

REP. VERGARA. Mme. Speaker, I move that we recognize the Gentleman from ACT TEACHERS, Rep. Antonio L. Tinio, for his interpellation.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Honorable Tinio is recognized.

REP. TINIO. Maraming salamat, Mme. Speaker. Magandang hapon, G. Isponsor. Ang pangunahing concern po namin, ngayong tinatalakay natin ang budget ng Department of Finance, ay ang tax reform dahil, siguro, for the first time, ay nakikilala ng publiko ang Department of Finance at ang trabaho ng Department of Finance dahil nga tampok na tampok at damang-dama, maging sa araw-araw na buhay ng ordinaryong Pilipino, lalo na ng mga maralita, ay ang TRAIN Law at iyong tax reform package na isinusulong ng Duterte administration. Unfortunately, para sa maraming Pilipino, lalo na sa mga maralita, hindi na mahihiwalay iyong TRAIN Law sa dagdag na pahirap na nararamdaman nila, lalong-lalo na sa porma ng tuloy-tuloy na pagtaas ng inflation rate.

Ngayon, hindi ko papasukin ngayon iyong debate kaugnay sa inflation. Sa mga nakaraang interpellations ng budget, may mga discussions na diyan at sa bahagi namin, ng mga kasamahan ko sa Makabayan bloc, ang posisyon namin ay malaki ang naging impact ng TRAIN, lalo na iyong TRAIN 1 sa inflation. Naipahayag na rin ng Sponsor na sa tingin niya ay maliit lang o minimal ang impact ng TRAIN. So, hindi na ang debateng iyon ang pupuntahan namin ngayon. However, I would still like to pursue some questions regarding the impact of the TRAIN Law and more broadly, the tax reform program of the Duterte administration.

Ngayon sa BESF o Budget of Expenditures and Sources of Financing, na sinabmit ng Malacañang kasama o kasabay ng NEP o National Expenditure Program, ay mayroong datos doon hinggil sa tax revenues ng gobyerno from 2017, iyong aktuwal, iyong 2018 na programmed at saka iyong 2019 na projected. Ito iyong kabuuang revenues na koleksiyon ng gobyerno during that period from 2017, 2018, and then 2019. Sa palagay ko, particularly useful ito para makita natin iyong naging impact so far ng tax reform program. Ito iyong revenues at alam naman natin iyong revenues ang pangunahing pinanggagalingan ng budget na pinag-uusapan natin ngayon at para sa akin,

instructive iyong mga datos na ito. If I may cite, noong 2017, ang total revenues ng gobyerno, actual, is P2.47 trillion. Pagkatapos, iyong tax revenues ay mahahati sa dalawang klase—iyong tax revenues at saka non-tax revenues. Let me focus on the tax revenues.

The tax revenues are divided into four types—taxes on net income and profits, taxes on property, taxes on domestic goods and services, and taxes on international trade and transactions. Ang gusto kong bigyan natin ng partikular na atensiyon ay iyong taxes on net income and profits vis-à-vis iyong taxes on domestic goods and services. Itong dalawa ang bumubuo ng pinakamalaking bahagi ng total revenues ng gobyerno.

Noong 2017, out of P2.473 trillion in total revenues, P2.25 trillion or 91 percent ay nanggaling sa tax revenues.Of the tax revenues, noong 2017, ang pinakamalaki na share ay nanggaling sa tax on net income and profits, P1.02 trillion comprising 41.5 percent of the total revenues, samantala iyong taxes on domestic goods and services ay umabot sa P756 million comprising 30.58 percent of total revenues.

Ngayon, nitong 2018, of course, ito iyong sa kasalukuyan, iyong unang implementasyon ng TRAIN Law, hindi ba? So, last January 1, it came into effect at dito, as programmed, ang taxes on net income and profits apparently ay aabot sa P1.033 trillion. That will comprise 36.3 percent of total revenues, samantala ang taxes on domestic goods and services ay mag-i-increase to P1.044 trillion comprising 36.6 percent of total revenues. Pagkatapos, let us go to the 2019 projections. For the 2019 projections, the taxes on net income and profits will now be P1.1 trillion and the taxes on domestic goods and services will be P1.2 trillion. Ang magiging percentages niyan ay 34.5 percent for the first and 38.6 percent for the latter, the taxes on domestic goods and services, as percentages of the total revenues.

What is my point? Ang point ko po, before TRAIN at saka after TRAIN, nagpalit na po ng puwesto ang taxes on domestic goods and services as against taxes on net income and profits. Kung dati ay mas malaking porsiyento ng total na kita ng gobyerno ang nanggagaling mula sa direktang buwis sa kita ng mga indibidwal at mga korporasyon, ngayon, pagkatapos ng TRAIN ay mas malaki na ang porsiyento ng kita ng gobyerno na nanggagaling sa mga buwis sa domestic goods and services. In other words, ito iyong mga produkto at serbisyo na binabayaran ng mga mamamayan at sa isang taon pa lamang ay significant ang pagpalit ng puwesto. So? Well, ang pinapakita po nito ay iyong budget na pinag-uusapan natin ngayon—iyong P3.7 trillion budget—ang mas malaking bahagi nito ay pinopondohan ng buwis na nanggagaling mula sa, tawagin natin, regressive taxes. Mas mabigat ang

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tax burden sa mga maralita, sa halip na mas malaking porsiyento ay manggaling sa mas malaki ang kita, iyong mula sa progressive taxation.

Bakit ko po binabanggit ito? Malinaw po ang mandato sa Konstitusyon—sa ating Konstitusyon, ang sabi sa Kongreso ay, “Congress shall evolve a progressive system of taxation.” Iyan po ang mandato ng Konstitusyon sa ating Kongreso na dapat ang sistema ng pagbubuwis ay progressive. Ano ang ibig sabihin noon? Na kapag mas malaki ang kita mo, mas malaki dapat ang buwis na binabayad mo; at kapag mas maliit ang kita mo, mas maliit naman na buwis ang dapat binabayad mo. Bakit ganoon? Of course, nakatuntong ito sa prinsipyo ng social justice.

Itinuturing ang sistema ng pagbubuwis na bilang isang pangunahing paraan para sa redistribution ng yaman sa lipunan, para iyong mas malaki ang pakinabang na personal sa lipunan, iyong mas mayaman dapat ay may mas malaking ambag sa gobyerno sa porma ng buwis at iyong ambag na ito ay theoretically dapat mapakinabangan ng mas nakararami, lalo na iyong mga maralita sa porma ng mga serbisyo ng gobyerno. Ang lumalabas ngayon, dahil sa tax reform program na tinutulak ng Duterte administration, pinapaliit iyong tax burden ng mga may kaya samantalang pinapasa iyong mas malaking tax burden sa nakararami, Mme. Speaker, Mr. Sponsor. How can this Congress justify such a patently unjust policy?

REP. SALCEDA. Yes. Mme. Speaker, Your Honor, overall, I think the fiscal incidence of government operations in general, if you look at the Chat Manasan study, it stated thereat that “For as long as the government spends on education and health and they are playing very prominently in social services.” Like iyong CCT, they are, in fact, progressive, but we can debate that.

Let me go to your figures, Your Honor, iyong epekto po ng TRAIN. Noong January to July 2017, ang sinasabi mo ay bumaba ang share ng total taxes on income. Tingnan po ninyo, ang net income ng mga korporasyon ay umangat from P319 billion to P380 billion pero iyong buwis na binabayaran ng mga ordinaryong empleyado ay bumaba po mula P227 billion, bumaba po ng P49 billion patungo po sa P180 billion. What can be more egalitarian than that? The corporations are actually paying more than ordinary employees, Your Honor.

Number two or number three, Your Honor, let me take this quote from Emmanuel De Dios and he said that using household expenditure, 40 percent of our so-called VAT and excise tax is actually from the richest 10 percent, and only 17.1 percent comes from the lowest 50 percent. I quote that from a well-known economist from UP.

So, just based on these three points, Your Honor, I believe this is still one of the most finely-architectured

tax policy ever in this country and possibly, the most egalitarian tax strategy that I have ever seen and studied as an analyst is the TRAIN and we call it TRAIN 1, Your Honor.

REP. TINIO. Mme. Speaker, well, mabuti at nabanggit ninyo, first of all iyong corporate income tax. In the figures that you cited, binanggit ninyo na nang na-implement ang TRAIN 1 ay lumaki ang binayaran ng mga korporasyon, lalo na kung ikukumpara sa contribution ng mga individual, iyong personal income tax, which is to be expected dahil iyong TRAIN 1 nga, binaba iyong corporate income tax—sorry, iyong personal income tax. So, of course, liliit ang porsiyento nito.

Ang isang tanong nga, saan naman nakabawi ang gobyerno? Malinaw din naman kung saan nakabawi ang gobyerno—nakabawi doon sa paglaki ng share ng taxes on domestic goods and services. Iyan na nga iyong dagdag na buwis sa petroleum products, gasoline, diesel, LPG, kerosene, iyong dagdag na buwis sa VAT dahil iyong mga dating walang VAT ay nilagyan ng VAT, iyong mga excise taxes on sugar-sweetened beverages, tobacco and alcohol, and so on, at sabi nga, lahat ay nagbabayad kahit iyong mga maralita. Okay. So, malinaw iyon. Pero at kaugnay doon, Mme. Speaker, maaari po bang magbigay ang Sponsor, ang DOF through the Sponsor, ng latest figures on the actual revenues collected by the DOF from TRAIN 1.

Sa mga discussions natin, nagbigay ng general figures ang kagalang-galang na Sponsor, and you mentioned—nakikinig po ako sa inyo—something like P47 billion daw ang kinikita so far pero sana po maging mas precise tayo. As of latest figures of the DOF, from January to June perhaps, magkano na po ba ang kinita sa bawat bagong buwis na naipataw?

REP. SALCEDA. Salamat po. From petroleum products – P20.9 billion; from automobiles – P9.6 billion; from SSB, sugar-sweetened beverages – P18.5 o halos kasing-laki lang ng kinakatakutang taas sa petrolyo; tobacco – P5.5 billion; from coal – P400 million; from mining – P900 million; from VAT – P300 million; and from personal income tax – a negative P15.5 billion. For the others and therefore, Your Honor, the total is, we only got net to government – P33.7 billion.

The argument has always been made, Your Honor, when TRAIN 1 was being discussed, that more than half of the proceeds of the TRAIN will actually go directly to the higher net take-home pay or lower personal income taxes of what we call the middle- income class, fortifying essentially its position within the economy. So, the real concern really is with respect to the lowest 50 percent which does not benefit, Your Honor. That is why we have two things there: one is really the prompt,

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efficient and effective implementation of the Conditional Cash Transfer, plus the directly-targeted fuel discount system, plus the investment of government.

I still take it, Your Honor, from a fiscal economist, Chat Manasan, that for as long as the government spends on roads, spends on education, spends on health—the net fiscal incidence, wherever you got the money, for as long as they are not egregiously obnoxious, Your Honor, this is net positive to the poor.

REP. TINIO. Perhaps, pero ang tinatanong ko po ngayon—sino ang nagbabayad noong mga roads, noong mga classrooms, noong mga services? Iyan po ang mga questions natin ngayon. It is not expenditure, government spending on roads, but who is paying for the roads? Who is paying for the cash transfers? At ang lumalabas nga ngayon ay mas malaking porsiyento ang nanggagaling sa taxes on goods and services rather than direct taxation on income. Kung papalawigin pa natin iyong ibig nating sabihin dito, iyong cash subsidies para sa mahirap, saan nanggaling iyon? E, nanggaling din sa mahirap, kaya puwede nating sabihin ginigisa ng TRAIN sa sariling mantika ang mga maralita. Certainly, hindi nanggaling sa upper income earners dahil sila nga ang binigyan ng income tax breaks, hindi ba, dahil binaba ang personal income tax nila.

Mme. Speaker, kung maaari po, dahil nag-cite ng mga statistics, puwede po ba na mag-break lang ng sandali para makakuha po ako ng kopya noong mga figures na na-cite ng Sponsor, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). The Majority Leader is recognized.

REP. TINIO. Thank you.

SUSPENSION OF SESSION

REP. VERGARA. Mme. Speaker, I move that we suspend the session for a few minutes.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 5:15 p.m.

RESUMPTION OF SESSION

At 5:16 p.m., the session was resumed

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

REP. TINIO. Thank you, Mme. Speaker. Salamat sa DOF at sa Sponsor kanina kasi na-cite nga niya iyong actual figures. I am assuming that these are not or hindi

ito projections, just to clarify, but actual collections per the new taxes under TRAIN for January up to June. Am I correct?

Okay, so, umaabot sa P33.7 billion ang total new revenues generated from TRAIN in the first half of 2018, samantala iyong loss through income tax—magkano po muli?

REP. SALCEDA. Umaabot sa P12 billion a month or P52 billion for the first six months.

REP. TINIO. So, P22 billion.

REP. SALCEDA. It is P52 billion

REP. TINIO. So, 52—51.5, tama po ba?

REP. SALCEDA. Tama po.

REP. TINIO. All right. Pagkatapos, iyong P33.7 billion ay actual na kita para sa unang kalahati pa lamang ng taon. Gusto nating idiin iyan. Okay. Para sa buong taon, may projection—magkano po ang projection para sa buong taon?

REP. SALCEDA. Nasa P90 billion po ang net; P147 billion ang mapupunta sa mga empleyado, so basically, just add the two, it is roughly about P240 billion, Your Honor.

REP. TINIO. Magkano po?

REP. SALCEDA. It is 2-4-0.

REP. TINIO. So, P240 billion. Okay. Thank you po para sa datos na ito.

Ngayon, binanggit po kanina ng Sponsor na sa katunayan, ang epekto ng TRAIN 1 ay nagbalik ng income, lalo na sa middle-income earners, at pagkatapos ay mas malaki ang naging collection sa corporate income tax. Pero hindi po ba ngayon ay kailangan nating banggitin ang TRAIN 2 or iyong tinatawag na TRABAHO? Hindi po ba ang pangunahing layunin ng TRAIN 2 ay bawasan ang corporate income tax at hindi lang basta babawasan. Ito ay bawasan ng malaki, na from 30 percent ay gagawin nga daw 20 percent na lamang ang corporate income tax. Sa madaling sabi, Mme. Speaker, G. Isponsor, iyong nakita natin na trend from 2017 to 2019, papaliit na share ng…

REP. SALCEDA. Income.

REP. TINIO. …taxes o net income and profits, at papalaking share ng government revenue na nagmumula sa taxes on domestic goods and services ay lalo pang titindi ito. Lalong babagsak iyong kita. Kung bumagsak

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na ang kita from personal income tax, ngayon naman over the next two years, makikita na natin na two years from now, iyong unang epekto ng pagbagsak ng corporate income tax at magtutuloy-tuloy pa po ito. Hindi po ba ganoon? Kinokontra po nito iyong pinagmamalaki ninyo ngayon.

REP. SALCEDA. Hindi po.

REP. TINIO. Na paglaki ng kontribusyon ng mga korporasyon sa kita ng gobyerno.

REP. SALCEDA. Kasi po iyong kinita natin sa corporate income tax noong isang taon ay umabot ng P589 billion. Sana, naging P900 billion iyon kung wala ang mga insentibo. Samakatuwid, Mme. Speaker, Your Honor, ang nangyari po is a certain inequality wherein mostly corporations, probably FDIs, are given incentives and they enjoyed these incentives for a long time and so, we need to do two things. Mayroon na pong inequity between the 2,886 firms pampered by the government, some up to 29 years. Some of which, almost all of their incentives, they give out as dividends vis-à-vis the 92,000 MSMEs which pay 30 percent corporate income tax, Mme. Speaker, Your Honor.

Just to put numbers sa P301 billion na na-compute noong 2015, out of that, Mme. Speaker, Your Honor, almost 60 percent or 54 percent to be exact, are redundant incentives. We are giving these to corporations which do not need them and would have been here anyway even without them. We are essentially using this amount, Mme. Speaker, Your Honor, to finance our reduction in the corporate income tax because the second philosophy behind TRAIN 2 or TRABAHO is the fact that we now have the highest corporate income tax being charged in the region. So, kailangan ho, unang-una iyong FIT po ay ibaba natin dahil sa region, tayo na ang pinakamataas. Inuuna natin iyong mga ordinaryong mga empleyado.

Ngayon po, isusunod na po natin—para maging competitive din ang isang kumpanya na dito sa Pilipinas mamumuhunan—ang pagbababa ng corporate income tax at para po hindi masaktan ang gobyerno sa pagtanggal ng mga insentibo sa mga redundant na incentives at mga incentives na masasabi natin na nagiging unequal o nagiging dysfunctional. For every year, Mme. Speaker, Your Honor, a 1 percent reduction in corporate income tax is equal to P36 billion. By 2021, at least P72 billion ang kailangan hanapin natin sa pagbaba po ng insentibo dahil po next year, magsisimula na rin iyong ating bagong tax incentive package na nakapaloob po sa TRABAHO o TRAIN 2, Mme. Speaker, Your Honor.

I subscribe to the entire sequence of reforms. The overall logic essentially is to make the country, both our labor force and our corporate sector to be more competitive.

REP. TINIO. Mme. Speaker, nabanggit nga ninyo iyong isa pang bahagi ng TRABAHO o TRAIN 2 which is supposedly the rationalization of fiscal incentives, ang pagbaba ng corporate income tax na supposedly babawiin sa pamamagitan ng rationalization ng fiscal incentives. Hindi natin gustong gawing debate ito muli sa TRABAHO Bill pero ang nais ko lang pong ipunto ay malinaw iyong magiging tama sa revenue ng gobyerno ang pagbaba ng corporate income tax. Naka-kalendaryo po iyan sa ipinasa ng House, mayroong timetable para sa reduction ng rates. Wala naman pong katiyakan na may kaakibat o katapat na pagbawi at kung gaano kalaki ang mababawi ng gobyerno sa pamamagitan ng rationalization of fiscal incentives.

Sa mga discussions sa Committee level at maging dito sa Plenaryo, hindi po makapagbigay ang Department of Finance ng projections kung magkano ang mababawi ng gobyerno through the rationalization of fiscal incentives. Just for purpose of this discussion, magkano po ba ang magiging projected loss of revenue due to the lowering of corporate income tax from 30 percent to 20 percent?

REP. SALCEDA. That is P72 billion for the first two years.

REP. TINIO. So, P72 billion for the first two years. That is 2 percent.

REP. SALCEDA. That is 2 percent, yes. That is from 30 percent going down to 28 percent.

REP. TINIO. Okay, 28 percent. Let us now project that up to the final rate, which is 20 percent, kaya magkano po?

REP. SALCEDA. In 10 years, Mme. Speaker, Your Honor?

REP. TINIO. Yes, in 10 years.

REP. SALCEDA. Mme. Speaker, Your Honor, that will be equal to P350 billion.

REP. TINIO. That P300 plus billion, maging sa Committee level hanggang sa Plenaryo, hindi nga ma-detalye ng Department of Finance kung saan kukunin, first, iyong P72 billion, how much more the P350 billion na projected na mawawala. Essentially, ang gusto ng Department of Finance is for Congress to take a leap of faith—maniwala tayo sa kanila na babawiin nila ito.

Iyon lang po ang gusto nating idiin dito, na tayo ay nababahala sa direksiyon ng tax reform na sa halip na tumalima sa mandato ng Konstitusyon sa Kongreso na magtungo sa isang progressive system of taxation, tila kabaligtaran ang nangyayari.

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Let me end this interpellation by just citing the statistics on gross income inequality in the Philippines. Kamakailan, may report na lumabas na sinasabi ang kayamanan ng 50 pinakamayamang indibidwal sa Pilipinas or the 50 richest persons in the Philippines. Of course ang no. 1 diyan ay si Henry Sy, followed by the usual names like Gokongwei, et cetera. Kapag pinagsama-sama daw ang kanilang yaman, …

REP. SALCEDA. It is 74 percent.

REP. TINIO. … ito ay magkakahalaga ng P73.9 billion …

REP. SALCEDA. Dollars.

REP. TINIO. Sorry, $73.9 billion in 2017 which is equivalent to 24.24 percent of the Gross Domestic Product of the whole country. So, 50 katao na ang kayamanan nila ay 24 percent of our GDP.

Sa kabila nito, ang itinutulak na tax reform ng Duterte administration, sa halip na gamitin ang pagbubuwis bilang makapangyarihang instrumento para sa redistribution of wealth, ang pangamba po natin ay baka lalong magtutungo ito sa higit na concentration of wealth at lalo pang titindi ang agwat sa pagitan ng mahirap at mayaman, Mme. Speaker.

Dito ko po tatapusin ang aking interpellation. Maraming salamat po.

REP. SALCEDA. Salamat. I agree with you on that point.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, the Honorable Tinio.

The Majority Leader is recognized.

REP. VERGARA. Mme. Speaker, on the part of the Majority, I move that we recognize the Hon. Mark O. Go from the Lone District of Baguio City.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Hon. Mark Go is recognized. Please proceed.

REP. GO (M.). Thank you, Mme. Speaker. Thank you, Majority Leader, and also to our Sponsor.

The proposed budget for 2019 is P3.757 trillion. How much is our expected revenue in 2019, Mme. Speaker?

REP. SALCEDA. It is P3.208 trillion, Mme. Speaker, Your Honor.

REP. GO (M.). The deficit based on the expected

revenue is P624.4 billion. Is that correct, Mme. Speaker?

REP. SALCEDA. Yes, Mme. Speaker, Your Honor.

REP. GO (M.). How much is our proposed borrowing for 2019?

REP. SALCEDA. Our interest expense, Mme. Speaker, Your Honor, is 399, but we are refinancing maturing loans of 600. We are essentially borrowing P1.2 trillion, Mme. Speaker, Your Honor, inclusive of the maturing principal.

REP. GO (M.). You are saying, in effect, that the borrowings that we will have in 2019 will pay partly our interest cost on our existing loans and borrowings, either internal or external.

REP. SALCEDA. Yes, that is right, Mme. Speaker, Your Honor.

REP. GO (M.). Is that a very logical approach in addressing our foreign and domestic borrowings?

REP. SALCEDA. In sovereign credit markets, Mme. Speaker, Your Honor, it is virtually given that the principal is automatically refinanced. There is hardly any difficulty and therefore, the trick there really is to keep your budget deficit at levels acceptable to the credit markets. The trigger at this point is that our national deficit is kept at 3.2 percent of the total GDP. That is pretty much not only reasonable, but very much acceptable to our credit markets.

REP. GO (M.). So, if we add the expected borrowings in 2019 and the existing borrowings of the country, how much will be the total borrowings of the country at the end of 2019—the total and how much interest are we paying?

REP. SALCEDA. We will just add, Mme. Speaker, Your Honor, the P399 billion because you refinanced the maturing loans, so, we will minus sa principal, pagkatapos, borrow tayo ng bago. In short, the additional debt is only the deficit.

REP. GO (M.). Yes, but if you look at the number—in 2016, our total borrowings, per record, is about P6 trillion. This amount went up to P6.5 trillion in 2017, and with the borrowings that we have this year of more than P800 billion, and the payment that we have made during the last two years, the total borrowings will be about P7.016 trillion. We are going to borrow again P1.1 trillion this 2019, so, we will have a debt of about

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P8 trillion. If we are paying P400 billion coming from our loan…

REP. SALCEDA. Mme. Speaker, Your Honor, the deficit is 600. If you had P6.65 trillion or almost P6.7 trillion plus the P650 billion—P6.7 trillion plus P700 billion, you get P7.4 trillion. I think there is no magic there, Mme. Speaker, Your Honor.

REP. GO (M.). No, but if your current borrowings as of now is 7.016, and you will get another P1.1 trillion and pay for the P400 billion, that means your loan will be about P7.5 trillion at the end of 2019.

REP. SALCEDA. That is for 2018. By 2019, it will be P8.1 trillion, Mme. Speaker, Your Honor.

REP. GO (M.). You will get P1.1 trillion plus P7 trillion.

REP. SALCEDA. Iyong P1.1 trillion, Mme. Speaker, Your Honor, includes the refinancing of our principal. Kumbaga, it is awash in the net stock of debt.

REP. GO (M.). Based on the …

REP. SALCEDA. Ibig sabihin, nagbayad ka ng piso kay Juan, umutang ka ng piso kay Pedro, so binayaran mo si Juan. Kung saan ka nagsimula, kung P10 ang utang mo, nagbayad ka ng piso at ang natira ay P9, tapos umutang ka ng plus P1 kaya P10 ulit. Ang sinasabi ko lang naman, Mme. Speaker, Your Honor, ang tunay po talaga diyan is really iyong deficit natin na kailangan i-finance. Kasi iyong principal, hindi ko naman sinasabi na no brainer po iyan but in general, if you are triple A investment grade, your maturing principal loans are practically, automatically refinanced in the credit market.

Ang sinasabi ko po, Mme. Speaker, Your Honor, ang real o next year target na utang ng gobyerno at the end of the Fiscal Year 2019 is P8,126,049,000,000. Iyon po.

REP. GO (M.). Okay.

REP. SALCEDA. Ginugulo ba kita?

REP. GO (M.). No, Mme. Speaker. The total loan that we have for 2019 is P7 trillion. You are going to borrow P1.1 trillion this year, and out of that amount, you pay P400 billion. What you will deduct from the P7.1 trillion plus the P1.1 trillion is the P400 billion that you will pay in 2019. What will be left will be about P8.5 billion.

REP. SALCEDA. It is P8.1 trillion po.

REP. GO (M.). Yes, P8.5 trillion.

REP. SALCEDA. Tama po, P8.1 trillion iyon. I think we can agree that next year, our national government debt will be P8.1 trillion.

REP. GO (M.). Will this be a continuing increase in our borrowings. or will there be a point in time where there will be an increasing borrowing but at a decreasing rate, so that there will be point in time in the next five years or 10 years…

REP. SALCEDA. By the end of the Duterte administration, Mme. Speaker, Your Honor, our public debt to GDP will only be 38 percent. Right now, it is 42 percent because our economy is growing faster than the amount that the government—you, see, the government accounts for only 20 percent of the GDP. Hindi po tayo ang pinakamalaking player sa ating ekonomiya. We affect it only through public policy as well as our budget, and the budget is the highest form of articulation of public policy.

Ngayon po, Mme. Speaker, Your Honor, iyong ating ini-invest, as probably one of the most powerful elements of the economy, which is called public goods. Kaya nga po mapi-predict mo halos ang pagtakbo ng ekonomiya sa kung magkano ang na-implement na inprastraktura. Kapag titingan o susuriin mo talaga ang buong budget, ang hinahanap po diyan ng isang credit analyst o iyong nagpapautang sa atin ay kung magkano ba iyong na-implement na infrastructure dahil iyon po ang magpapalago ng ekonomiya.

Samakatuwid, Mme. Speaker, Your Honor, ang sinasabi ko sa ngayon, nasa resonableng level tayo at 42 percent, as compared sa Japan na 290 percent, as compared sa Italy na alam natin na marami rin Pinoy doon, na halos 300 percent. Hindi po tayo pakawala at kilala tayo sa buong mundo na ni minsan hindi tayo hindi nagbayad ng utang natin. Samakatuwid, sinasabi ko po, Mme. Speaker, Your Honor, itong fiscal strategy ng gobyerno is not only reasonable, it is actually prudent.

REP. GO (M.). What bothers me, Mme. Speaker, is the fact that we are borrowing P1.1 trillion and part of it is to pay our existing loan and interest.

REP. SALCEDA. Unang-una, kailangan talaga bayaran ang utang kasi kung hindi…

REP. GO (M.). Tama iyon pero kung ikaw ay mangungutang at ang ibabayad mo ay iyong pera na utang mo rin, medyo mahirap iyon. Dapat nanggaling ang pagbayad doon sa kinita mo noong nakaraang taon.

REP. SALCEDA. Ganito po iyan, Mme. Speaker,

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Your Honor. Marami tayong proyekto dito, nakita ko halos sa buong GAA na ang mga na-propose dati ay magulo pero kung nalagyan ng kalsada, walang gulo, nakapag-negosyo. In economic terms, Mme. Speaker, Your Honor, the economic return of that investment is infinite, from no business to some business. Therefore, Your Honor, if we are currently borrowing at 4.5 percent to finance a high-return economic activity, Your Honor, mas magaling pa rin pa po, tamang patakaran po dahil ang economic return ng project sa Pilipinas ay di hamak na halos triple ng atin pong binabayarang interes. Samakatuwid, Your Honor, tama pa rin po sa estado natin sa ngayon, dahil po napakabata ang atin pong populasyon kaya dapat po mas lalo tayong mag-invest sa human capital formation at sa fixed capital formation, Your Honor.

So, hindi po, I do not share, Your Honor, your concern because I know the economic managers and policy ethos of many of the people who are in the Central Bank, in the DBM, in the DOF. Halos masasabi ko, Your Honor, they are probably very conservative financial managers that we have in this country and so, hindi ho tayo ipapasubo ng mga iyan, You Honor.

REP. GO (M.). I will take your word on that, Mme. Speaker.

My second, on TRAIN 1, how much will be the additional revenue that we will generate in 2019 as a result of the other increases in excise tax and other taxes that will be imposed in 2019?

REP. SALCEDA. Sandali, Your Honor, para eksakto, ang akin pong sagot—144, Your Honor.

REP. GO (M.). It is P144 million?

REP. SALCEDA. Billion.

REP. GO (M.). So, billion. That will be an additional revenue. Is that calculated already with the revenue that you just mentioned for 2019?

REP. SALCEDA. Na 90?

REP. GO (M.). Yes.

REP. SALCEDA. Alin ho, iyong 2-2-0-6?

REP. GO (M.). Yes.

REP. SALCEDA. Kasama na po.

REP. GO (M.). Kasama na iyon. Calculated na.

REP. SALCEDA. Naka built-in po.

REP. GO (M.). Okay. In due time, probably before the end of this year, we will approve––we have already approved TRAIN 2 in the House.

REP. SALCEDA. Opo.

REP. GO (M.). How much are we going to generate as an additional income?

REP. SALCEDA. Wala. Baka pa nga magbawas.

REP. GO (M.). Magbabawas tayo?

REP. SALCEDA. Opo.

REP. GO (M.). Magkano po?

REP. SALCEDA. Kasi po iyong TRAIN 2, kung babasahin ninyo …

REP. GO (M.). Nabasa ko na po. Ang tinatanong ko lang, mayroon pong additional o walang deduction?

REP. SALCEDA. Deduction po.

REP. GO (M.). Deduction. Magkano po ang expected reduction in terms of our revenue?

REP. SALCEDA. Actually, iyong computation diyan, Your Honor, dahil sa next year po, although hindi masyadong napag-usapan sa atin, ang isa sa pinakamagandang tax incentive package sa buong Asya ay, actually, inaprubahan natin dito sa floor.

REP. GO (M.). Yes.

REP. SALCEDA. One of the most attractive fiscal incentives and package for any investment was approved by this House, iyan po ay ang TRABAHO. So, iyon po ang kailangan po i-compare dahil iyong mga bagong papasok, iyon na po ang gagamitin natin sa kanila. So, dahil iyan po ay mas maganda sa current ay kailangan pa pong i-estimate kung magkano po iyong diperensiya at magkano po iyong tama sa atin. Kung sa ngayon po P354 billion nawawala sa atin dahil po sa incentive, siguro po ngayon, Your Honor, baka madagdagan po ang estimate ko dahil kina-calculate ko, dahil alam ko matatanong ngayon, baka po mga––naku, Diyos ko, 36 po.

REP. GO (M.). Maging P36 billion?

REP. SALCEDA. Yes po.

REP. GO (M.). Was that already calculated?

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REP. SALCEDA. No.

REP. GO (M.). So, this is an additional cost.

REP. SALCEDA. Burden.

REP. GO (M.). Yes.

REP. SALCEDA. Pero, Diyos ko, Your Honor, that is a static analysis dahil po ang ibig sabihin niyan, isang katerbang foreign direct investments ang papasok.

REP. GO (M.). Hindi po. Alam po natin iyan, kung magkakaroon ng maraming foreign investment ay makakaroon tayo ng multiplier effect sa ibang negosyo.

REP. SALCEDA. Tama po. Salamat dahil alam ko naman ikaw ay isang testigo sa kung ano ang role ng foreign investment sa Baguio, lalung-lalo na sa inyo pong export processing zones. So, Your Honor, actually, …

REP. GO (M.). So, iyon pong TRAIN 2 na iyan, because this reduction in our revenue will not narrow down the gap between the expenditures expected in 2019 and the revenue that will be collected.

REP. SALCEDA. Actually, it is a reasonable risk-taking on the part of the government, Your Honor. To justify, unang-una po, Your Honor—ganito po iyan. Kapag kasi hihintayin natin iyong 2021 kung saan magbabawas tayo noong corporate income tax, between now and 2021, marami pong magkakamot sa ulo at baka nerbiyusin at tumakbo. Di mas malaki ang nawala sa atin. Kaya ang ginawa po ng DOF at ng economic managers, they advanced po iyong TRAIN 1 at TRAIN 2 sa 2019. Samakatuwid, di hamak na mas maganda kaysa sa ibinibigay po ng Vietnam o kahit sino po sa ASEAN ang ibinibigay po natin sa investments dito sa atin, whether foreign or domestic, Your Honor.

Sa pananaw ko, Your Honor, dahil sa akin pong nakita na sa una pong bugso ng mga ganoong klase ng mga investment promotion drive ay actually po net positive, eventually kasi binibilang mo iyong ibinawas. Pero magdadagdag po iyan ng gross value-added, ng employment, ng additional capital equipment, ng additional—ikaw na nga po nagsabi—multiplier effect, Your Honor. Sa net po, Your Honor, siguro, hindi ganoon kalaki. Siguro, mga kalahati lang po noon ang mararamdaman po ng gobyerno.

REP. GO (M.). We expect to see this probably in the next 2 to 3 years up to 5 years.

REP. SALCEDA. Marami na po nag-aaral.

Ipinadala ko po ito sa mga malalaking mga business groups. Alam po ninyo, galing po ako sa stock market at ang diyos po diyan ay EPS or earnings per share.

REP. GO (M.). Yes.

REP. SALCEDA. Kaya ito pong ginawa natin sa Kongreso, lahat po ng kumpanya na gustung-gustong umakyat ng kanyang stock price, kakagatin po iyong ino-offer natin kasi po, imbes na kukunin mo sa pagkahaba-haba ng panahon dahil wala nang forever, seven years mo na lang puwedeng tikman, kakagatin po nila iyan dahil gusto nila next year mayroon kaagad silang makikita. Iyong kanilang shareholders ay iyon, wow, biglang pumutok dahil nag-invest sila sa Pilipinas, Your Honor.

Kaya naman ako po, I am pretty bullish, Your Honor, and confident that TRAIN 2 actually will change the investment narrative of the Philippines, Your Honor, to one beyond the inflation cycles, the BOP cycle or the current account cycle, Your Honor. Because once we have this, Your Honor, I am telling you, whether you are expert-oriented, whether you are input-substituting, Your Honor, whether you are merely—ang haba na po yata ng sagot ko, tinitingnan na po ako ni Majority Leader. Kaya po, Your Honor, I will—can I finish my answer to that, Your Honor?

REP. GO (M.). Nakakabilib po iyong passion ni G. Salceda, Mme. Speaker.

REP. SALCEDA. Naaawa po ako kay Rep. Mohamad Dimaporo.

REP. GO (M.). Sana po iyon pong nabanggit ninyo ay mangyayari sa ating bansa iyan.

Balik po ako doon sa budget po ng Department of Finance. As far as the PS of the Department, ang total po ng budget nila sa Personnel Services is about P8.7 billion for the total number of permanent positions of 31,317. Is that correct, Mme. Speaker?

REP. SALCEDA. Can I ask for a one-minute suspension of the session, Your Honor?

SUSPENSION OF SESSION

REP. VERGARA. Mme. Speaker, I move that we suspend the session for a few minutes.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 5:49 p.m.

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RESUMPTION OF SESSION

At 5:50 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

REP. SALCEDA. Ay, sorry.

THE DEPUTY SPEAKER (Rep. Garin, S.). Please proceed, the Hon. Mark Go.

REP. GO (M.). Out of the 31,317, Mme. Speaker, you have 15,968 unfilled positions, which means that almost 50 percent of the positions in the Department of Finance were not filled up.

REP. SALCEDA. I will ask a definite commitment, Your Honor, from the Secretary on exactly what he will do with the 16,000 unfilled positions.

May I ask for one-minute suspension of the session, Your Honor.

SUSPENSION OF SESSION

REP. VERGARA. Mme. Speaker, I move that we suspend the session for a few minutes.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 5:50 p.m.

RESUMPTION OF SESSION

At 5:53 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Leader is recognized.

REP. SALCEDA. Napapahiya po ako sa inyo kasi totoong-totoo iyong sinasabi po ninyo.

THE DEPUTY SPEAKER (Rep. Garin, S.). Please …

REP. SALCEDA. To the honorable interpellator, they are, indeed, projecting 15,968 even for next year which is, I think, a fundamental anomaly. How can you project unfilled positions unless you do not want to hire?

So, I guess, Your Honor, it is time probably in this House to exactly give an instruction to the DOF especially for the 10,000 because out of this 15,968, 10,000 are in the BIR and 3,600 are in the Bureau of Customs, Your Honor. They are having that consistently

from year to year to year and therefore, Your Honor, it is almost a permanent fixture of the way they operate. Let us, probably in this budget hearing, Your Honor, instruct the Secretary and the others that they need people to collect. So, Your Honor, I will accept any recommendation that will essentially cure what I call a fundamental anomaly in the way we operate our revenue generating agencies.

REP. GO (M.). Well, the positions have been vacant since 2015.

REP. SALCEDA. That is correct, Your Honor. That is from year to year to year.

REP. GO (M.). I think the first decision that should be made—will they still fill up these positions or not? Then, on that basis, we will know exactly what to do after.

REP. SALCEDA. Use it or lose it.

REP. GO (M.). Yes, and so, that is the challenge that we will give to the Department of Finance.

REP. SALCEDA. So, we will give them one year, Your Honor. Does the Gentleman want to put that as a special provision?

REP. GO (M.). No, I will not make that a special provision, but as a request to them to really decide whether they want to fill up the positions or not. If not, then it is okay, we can remove the positions from the plantilla of the Department of Finance.

REP. SALCEDA. However, Your Honor, I feel bad because why will we punish somebody if he is very efficient. If they can collect more with less people, why not?

REP. GO (M.). Yes, I agree.

REP. SALCEDA. Probably, it is the way we allocate human resources, that is, probably iyon po ang mali. We have overprogrammed staffing patterns for the BIR and for Customs, Your Honor.

REP. GO (M.). I think that Secretary Dominguez and Commissioner Dulay are doing a good job with these 15,000 people with them. Probably, there is no need really to fill up the remaining 15,000 positions.

REP. SALCEDA. Yes.

REP. GO (M.). So, again, Mme. Speaker, thank you very much.

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REP. SALCEDA. Thank you very much.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, the Hon. Mark Go.

The Majority Leader is recognized.

REP. VERGARA. Mme. Speaker, may I move that we temporarily suspend the deliberations on the budget of Department of Finance so that we can resume the consideration of the budget of the COMELEC.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

REP. VERGARA. Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). The Hon. Mohamad Dimaporo (M.), do you still need the COMELEC officials behind you?

REP. DIMAPORO (M.). Yes, Mme. Speaker, the COMELEC family is ready.

SUSPENSION OF SESSION

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 5:56 p.m.

RESUMPTION OF SESSION

At 5:56 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Leader is recognized.

COMMISSION ON ELECTIONS

REP. VERGARA. Mme. Speaker, I move that we resume the consideration of the budget of the Commission on Elections.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Majority Leader is recognized.

REP. VERGARA. Mme. Speaker, I move that we recognize the honorable Cong. Mohamad Khalid Q. Dimaporo.

REP. DIMAPORO (M.). Mme. Speaker, I am willing to entertain any questions.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, the Hon. Mohamad Khalid Q. Dimaporo.

Majority Leader, are there any interpellators?

REP. VERGARA. I move that we recognize the honorable Minority Leader, Cong. Danilo “Danny” E. Suarez.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Minority Leader, the Honorable Suarez is recognized. Please proceed.

REP. SUAREZ. Thank you, Mme. Speaker.After conferring with the Sponsor and with the firm

assurance by the new leadership of the COMELEC that the incident of 2016 will not happen again, and that they will be guided by the advocacy of how important is their office in terms of suffrage, this Representation, Mme. Speaker, is withdrawing the earlier motion to suspend the consideration of the proposed budget for the COMELEC. On behalf of the Minority, we have no more questions on the proposed budget of the COMELEC.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, the Honorable Suarez.

The Majority Leader is recognized.

REP. VERGARA. Mme. Speaker, on behalf of the Majority, we join the Minority in terminating the period of interpellation and debate on the budget of the Commission on Elections.

SUSPENSION OF SESSION

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

Congratulations! (Applause)The session is suspended.

It was 5:58 p.m.

RESUMPTION OF SESSION

At 6:01 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is resumed.

The Majority Leader is recognized.

NATIONAL COMMISSION ON MUSLIM FILIPINOS.

REP. DEFENSOR. Mme. Speaker, I move that

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we take up the budget of the National Commission on Muslim Filipinos.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Majority Leader is recognized.

REP. DEFENSOR. To sponsor this budget, Mme. Speaker, we have the distinguished Gentleman from Lanao del Norte, the Hon. Mohamad Khalid Q. Dimaporo. I move that the Gentleman be recognized.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Hon. Mohamad Dimaporo is recognized.

REP. DIMAPORO (M.). Thank you, Mme. Speaker. First and foremost, I would like to apologize to the NCMF family for making them wait for so long.

It has been an annual problem for all of us, Muslim Filipinos, when we go to the Hajj every year for religious compliance, that when we reach Saudi, we always find na kulang ang accommodations, kulang ang pagkain. It is as if the pilgrims are not getting what they paid for. So, I will simply ask one thing from our new Secretary, Secretary Pangarungan, and that is to provide this Representation the budgetary documents to show that the Hajj pilgrimage program will be aboveboard. Unfortunately, his predecessor did not conduct a proper turnover of documents and so, I am planning to file a resolution to investigate the NCMF to ensure that the Hajj pilgrimage funds will not be wasted and taken advantage of.

I have the commitment of our new Secretary that the lapses that happened in the previous administration will not happen again. So now, I am willing to submit, Mme. Speaker, to the floor the budget for 2019 of the National Commission on Muslim Filipinos, the total amount of which is P590,957,000, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you for such a passionate sponsorship.

REP. DEFENSOR. Mme. Speaker, there will be no interpellation—we have no interpellations on this budget. With that, Mme. Speaker, I move that we recognize the distinguished Minority Leader, the Hon. Danilo Suarez.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The Minority Leader, Hon. Danilo E. Suarez, is recognized.

REP. SUAREZ. Mme. Speaker, on behalf of the Minority, we have no questions on the proposed budget of the said office, but with the condition that they take serious cognition of the statement of the Sponsor regarding the said funds.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Thank you, the Honorable Suarez.

The Majority Leader is recognized.

REP. DEFENSOR. Mme. Speaker, the Majority joins the Minority in its motion to terminate the period of interpellation and debate on the budget of the National Commission on Muslim Filipinos.

I so move, Mme. Speaker.

THE DEPUTY SPEAKER (Rep. Garin, S.). Is there any objection? (Silence) The Chair hears none; the motion is approved.

Congratulations! (Applause)

SUSPENSION OF SESSION

THE DEPUTY SPEAKER (Rep. Garin, S.). The session is suspended.

It was 6:04 p.m.

RESUMPTION OF SESSION

At 6:07 p.m., the session was resumed with Deputy Speaker Munir M. Arbison presiding.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

The Majority Leader is recognized.

DEPARTMENT OF FINANCE

REP. DEFENSOR. Mr. Speaker, I move that we resume the consideration of the budget of the Department of Finance.

THE DEPUTY SPEAKER (Rep. Arbison). Is there any objection? (Silence) The Chair hears none; the motion is approved.

REP. DEFENSOR. To sponsor this budget, Mr. Speaker, I move that we recognize the distinguished Gentleman from Albay, the Hon. Joey Sarte Salceda.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Salceda is recognized.

REP. DEFENSOR. To interpellate, Mr. Speaker,

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THURSDAY, SEPTEMBER 20, 2018 17th Congress 3RS v.2 • Congressional Record 49

I move that we recognize the Gentleman from ANAKPAWIS, the Hon. Ariel “Ka Ayik” B. Casilao.

THE DEPUTY SPEAKER (Rep. Arbison). The Gentleman from ANAKPAWIS is recognized.

REP. CASILAO. Thank you, Mr. Speaker. Magandang hapon po sa ating lahat.

Distinguished Sponsor, before I begin my interpellation, three days ago, I saw in an ANC coverage an economic briefing by all of our economic managers and what struck me most were the statements by Secretary Dominguez of the Department of Finance who, with regard to the 6.4 inflation rate, said that “We do not see this as a structural infirmity” and “Sometimes, we get distracted by the clouds and fail to appreciate the rainbow.”

Distinguished Sponsor, I cannot imagine and I cannot understand kung saan po humuhugot ng ganito ang ating Kalihim. The material conditions today, with all the figures, the 6.4 inflation rate, the P7 trillion debt o utang—lampas na po dito tayo sa mga numerong ito. Ang rainbow ba na tinutukoy ng ating Kalihim ay iyong mga magkakaibang kulay ng mga damit ng mga mahihirap nating mamamayan na pumipila sa napakahabang pila sa mga NFA stores? Iyan ba ang iba’t ibang kulay na yaon ay rainbow? Iyon pong lumalala na, ayon sa 2017, 300,000 jobs lost.

Now, please enlighten this Representation, distinguished Sponsor, saan po makikita iyong rainbow na iyan na taliwas at baligtad sa kasalukuyang tinatamasa at nararanasan ng ating mamamayan?

REP. SALCEDA. Mr. Speaker, at least, inamin na may clouds. So, makulimlim, hindi po kaaya-aya, subalit po, hindi naman po siguro dapat na hindi ka na puwedeng umasa o mangarap ng isang mas magandang buhay, lalung-lalo na para sa ating bansa.

Iyong pangarap po ng ating Pangulo na maging isang upper-middle income country at maging isa sa pinakamabilis na ekonomiya sa buong Asia by 2040 ay ginagawa po sa pamamagitan po ng mga economics strategies, Mr. Speaker, upang lahat po ay makinabang. At kung titingnan ninyo, for the first time, kumpara sa lahat po ng Philippine Development Plans na nakita ko po, ngayon ang number one national goal po is a more equal society. Dati po, makikita mo kaagad diyan, reduced poverty. Ngayon po, hindi. Ang andiyan—a more equal society, a more egalitarian society. Sa pamamagitan po ng pagpalago ng mga parte ng ekonomiya kung saan po nakikinabang ang lahat at nagko-contribute po ang lahat ng sector, lalung-lalo na iyong may kaya, sa pamamagitan po ng pagbubuwis ng ating gobyerno.

May sapat po na basehan o batayan ang pangarap na iyan. Mr. Speaker, kung hindi na po tayo mangangarap,

para saan pa po at nagpa-election ka na maging Pangulo? In other words Mr. Speaker, the national will is being forged on the national ambition for a better life for our people. That is the rainbow of our honorable DOF Secretary of Finance, Mr. Speaker.

REP. CASILAO. I may not agree with that opinion, distinguished Sponsor, dahil ako, simple lang po. Paano po tayo mangangarap ng ganyang klaseng buhay sa hinaharap kung sa ngayon ay pinapatay na tayo sa gutom? Papaano po tayo mangangarap ng isang bayan, iyong sinasabi natin na direksiyon patungo sa Bayan 2040, iyong programa sa ilalim ng Philippine Development Plan na mayroon siyang roadmap papuntang Ambisyon 2040? Papaano po tayo mangangarap ng ganyan ang aabutin natin kung ang kongkretong kinakaharap natin ngayon ay malayong-malayo doon sa tinatakda ng mga materyal na batayan?

Ngayon po, well, again, my first question, because one of the pet projects of this administration, especially the economic managers, is the imposition of a new tax regime. It is characterized in five tranches or five packages at naranasan na natin ngayon ang epekto ng TRAIN 1. Whether we like it or not, however the economic managers justify the figures, hindi po natin maikukubli at maitatanggi na ang pinaka-naaapektuhan at pinaka-tinatamaan nito ay iyong ating mga mamamayan. Do not tell me, distinguished Sponsor, to sacrifice now for we will reap the fruits of our sacrifice today in the future because I do not understand the humanitarian, the economic basis of the so-called “sacrifices.” Pero, let me go to the first question, distinguished Sponsor. Part of this existing tax regime, the TRAIN 1 and the TRABAHO Bill, is to fund the P8.4 trillion Build, Build, Build Program. Now, according to the economic managers, for the Build, Build, Build, a 75-25 fund-sourcing scheme will be observed. Domestic revenues will fund the 75 percent, that is why they laid down five packages of tax reform, and 25 percent will be sourced from foreign funding. Now, what is the status of these so-called 75 approved big-ticket projects in June 2017 for the Build, Build, Build Program, to generate the finances or the revenues that will be spent in the collection of the new or the reformed tax regimes, and for the identification of loans, foreign loans or ODAs for that matter, distinguished Sponsor?

REP. SALCEDA. Mr. Speaker, can I just—because it is pretty long, it is huge. Can I just give the Gentleman a copy of the unofficial endorsement of the economic managers to the Committee on Appropriations on the status of the 75 so-called BBB projects?

REP. CASILAO. Yes. So, are we on the same page that 40 of these 75 projects will be funded by ODA loans?

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REP. SALCEDA. Mr. Speaker, only P200 billion of the total P1.8 trillion of the 75, so, almost just 12 percent.

REP. CASILAO. So, that 12 percent …

REP. SALCEDA. No, I am sorry, Mr. Speaker—200 divided by 1,881, so it must be more than 10 percent.

REP. CASILAO. Yes, because I think it reached 20 percent.

REP. SALCEDA. Wait, Mr. Speaker, it is better to be exact. So, 200 divided by 1,881—10.6 percent will be funded through internally-generated funds, Mr. Speaker. But you see, eventually, we will pay for these because these are loans.

REP. CASILAO. Yes. So, how much would the interest be?

REP. SALCEDA. For the Japanese loans, Mr. Speaker, for example, for the subway, it is 0.1 percent.

REP. CASILAO. It is 0.1?

REP. SALCEDA. It is 40 years to pay.

REP. CASILAO. It is 15?

REP. SALCEDA. There is a 12-year grace period, 40 years to pay, and 0.1 percent. For the Chinese loans, Mr. Speaker, it is 2 percent, 20 years to pay, 7-year grace period, but US dollar- denominated.

REP. CASILAO. In my research, ang kumokopo ng mga foreign-funded o itong mga ODAs, medyo marami ang China. Now, correct me if I am wrong, but this China pivot means greater interests and shorter terms of payment. If my research is correct, I think it is 15 years compared to Japan’s 25 years.

REP. SALCEDA. It is 14 vs. 40.

REP. CASILAO. Come again.

REP. SALCEDA. It is 40 years for Japan, 4-0.

REP. CASILAO. So, 40 years?

REP. SALCEDA. Yes.

REP. CASILAO. For China?

REP. SALCEDA. It is 20 years.

REP. CASILAO. Is it 15?

REP. SALCEDA. It is 20 years, 2-0. So, 7-year grace period, 20 years, 2 percent per annum, US dollar-denominated, this is for China. For Japan, Mr. Speaker, it is 0.1 percent, yen-denominated, 12-year grace period, and 40 years to pay.

REP. CASILAO. Distinguished Sponsor, 18 of the 40 big-ticket infra projects with ODAs came from China. I may be mistaken on these data but my sources referred to the Asian Infrastructure Investment Bank, the Chinese Export-Import Bank of China or the China Development Bank. Ibig sabihin po, shorter payment terms, bigger interest rates, pero ang kalakhan po ng malalaking proyekto, out of the 40, 18 po ang nakalaan dito. Now, my practical question, distinguished Sponsor, hindi ba mas lolobo nang husto, bagamat tinatayang sinasabing hindi iyon 75-25 po and in fact, 10 percent lang ang foreign-funded dito, pero with what is happening now, the continuing pagbaba o iyon patuloy na pagbagsak po ng balor ng ating piso kontra dolyar definitely will impact whatever annual obligation to this ODA-funded projects.

So, please educate this Representation, distinguished Sponsor: Why is it then that it seems it greatly favored the China pivot, that the 18 big infra or construction projects favored the banks of China?

REP. SALCEDA. I will just say, Your Honor, that Japan, as the President said, is “the best friend of the Philippines” and China is, “we are just being a good neighbor.” I think that is the foreign policy and so, expressed in financial terms, Your Honor, bakit may dalawang klase? Kasi lahat naman po ng mga countries ay may kanya-kanya pong limit. Parang bangko po iyan na may single borrower’s limit na kailangan kontrolin mo ang exposure sa isang country o sa isang kumpanya, industriya o sektor. Samakatuwid, Your Honor, puwede rin naman siguro ubusin na natin ang uutangin sa Japan. Nasa national interest po ba na nakasandal lang tayo sa isang bansa samantalang kailangan nating makipag-kaibigan sa lahat? Kailangan po natin ng mas maraming allies, lalung-lalo na sa ganitong panahon na nasa gitna po tayo ng globalisasyon.

In other words, Your Honor, it may also make sense to have financial diversification because the reverse of everything we do is essentially our forex exposure. Sa balance sheet natin, mas gusto natin may US dollar-denominated, may yen-denominated, may yuan-denominated para ho, Your Honor, kung may mga sudden spike diyan, dahil hindi ho natin alam kung may pabigla-bigla po na manyayari—pero ang hindi matatawaran po, Your Honor, ay kailangan po natin ng matagal na pera o long-term capital.

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Iyong sa Hapon, kung ako ang pipili, sasabihin ko sa inyo na sana lahat ng talagang na-offer po na pera galing sa Hapon ay sasagarin po natin kasi iyong isa pa lang po na subway ay $10 billion kaagad. Samantalang iyong binilang mo na halos pagkarami-rami sa China ay nasa $4.9 billon dollars lang po ang total noon. Samakatuwid, Your Honor, hindi ho natin mapipilit ang Hapon kung ang kailangan talaga natin ay mga $30 billion dollars para ma-finance ang ating mga infrastructure projects na hindi po pupuwede na idepende natin sa 91-day T-bill or sa 360-day T-bill or even sa ating ROP. Ang importante po dito ay ang sinasabi nating mga negotiated bilateral loans dahil ito po ay puwedeng pakiusapan, “Uy, paki.” Hindi katulad po sa merkado na kapag galit sa iyo ay papaluin ka na may masamang konsekuwensiya kung saan wala ka pong kalaban-laban katulad ng nangyari noong 1983. Samakatuwid, Your Honor, kailangan po diyan ang tinatawag nating liability management. Kumbaga sa balance sheet, Your Honor, hindi lang po assets ang mina-manage pero pati po iyong liabilities.

So, tatlong bagay po iyon siguro, Your Honor, para mas maintindihan natin kung bakit halos nagkakandarapa tayong humanap ng pera, pero kung iisipin natin, Your Honor, iyong sa Hapon, halos bigay kasi ang net present value ng 0.1 percent interest, 40 years to pay, kahit idagdag pa iyong forex forward charges, ay actually po, Your Honor, mas mura po iyong sa Japan at halos libre—grant. Subalit po, grant pala kaya bakit ginawa pa na utang? Ganito po iyon, Your Honor—may mga batas din po silang sinusunod sa pag-budget, na mayroon silang maximum na puwedeng i-donate. Inilalagay po nila sa kanilang GAA, “Loans to the Philippines – $10 billion.” Iyong mga ibang legislator, maiintindihan nila ito kaysa “Foreign Aid to the Philippines – $10 billion.” So, walang babalik. Samakatuwid, Your Honor, para mas maintindihan natin kasi kung minsan, katulad noong naupo po ako sa Green Climate Fund, kasama ko po ang batang ito at alam po niya na kailangan din na i-timing iyong paghingi ng pera sa kanilang budget cycle. Kaya kung minsan, Your Honor, ita-timing natin, katulad noong isang beses, hindi ba libreng-libre, nagbigay ng $35 million dollars ang Germany para po sa mga proyekto natin sa climate change. Pero masyadong mahaba na po ang sinasabi ko.

The long and short of it is, Your Honor, paborable ba sa Pilipinas? Sa pananaw ko po, Your Honor, masusing pinag-aralan po ng ICC ng ating NEDA ang lahat ng mga proyektong ito at sinisiguro po nila na ang ating economic internal rate of return is above 10 percent. Ang ating current rate of debt po, ang average cost of debt ng Philippines as a sovereign borrower, Your Honor, is roughly 4.9 percent. Sa tingin ko, Your Honor, ito ay eksakto lang po at wala hong pagmamalabis sa kakayahan nating mangutang at ipursige ang ating national aspiration upang umunlad po ang ating bansa.

REP. CASILAO. Distinguished Sponsor, may I know the status of these big-ticket projects, if currently ongoing. Now, one question, Your Honor: will this loan need congressional concurrence?

I believe that the Constitution states that there is a necessity for Congress to approve whatever loans the Executive Department will undergo.

REP. SALCEDA. Ang alam ko, Your Honor, iyong pagbayad, mayroon. Iyong pag-utang, wala. (Laughter)

REP. CASILAO. Of course—please, for those who know, Congress does not need to concur or give a go-signal?

REP. SALCEDA. As far as I know, the legal framework is, they should notify Congress.

REP. CASILAO. So, may I know if the Department of Finance possesses these contracts or agreements?

REP. SALCEDA. Wala po—isa pa lang po iyong may note verbale, Your Honor. Siguro, iyon ang kailangang ibigay sa atin.

REP. CASILAO. So, please provide those documents to this Representation.

REP. SALCEDA. Sigurado po.

REP. CASILAO. Of course, they will state the terms.

REP. SALCEDA. Yes po, Your Honor. Ang pinakamabilis niyan, hiramin po ninyo iyong ibinigay ko kay Representative Lagman kagabi dahil ibinigay ko na po iyong note verbale sa kanya.

REP. CASILAO. Bigyan ninyo rin po ako.

REP. SALCEDA. Bibigyan din ko po kayo.

REP. CASILAO. Now, my last two questions, distinguished Sponsor. Last August 22 to 24, a delegation of our economic managers led by Secretary Dominguez flew to Beijing, China supposedly to have a high-level meeting with the Chinese officials to discuss the challenges of the first basket of infra projects. Precisely, distinguished Sponsor, I asked for the status of the 40 projects, especially the 18 big-ticket projects under the different banks of China, because this is necessary information which the Filipino people need to know.

While the trip to Beijing of the contingent of economic managers was announced, the result of the

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meeting, I believe, we need to be apprised of— whether agreements were reached and if there were, to please provide us documents or should we say, a summary of what transpired in the meeting and which, hopefully, is transparent enough to convince us that it is not part of the total sellout of our national patrimony, much less our national sovereignty.

REP. SALCEDA. Certainly, Your Honor, we will comply with your request.

REP. CASILAO. Now, Mr. Speaker, before I end my interpellation, I admire how the distinguished Sponsor tried to defend by statistical data and by his deep knowledge of the economy.

REP. SALCEDA. However … (Laughter)

REP. CASILAO. However, bilang Kinatawan po ng ANAKPAWIS Party-List na ang pangunahing mga kasapi ay ang mga magsasaka, mga manggagawa, mga maralitang-lungsod at mga driver—kami po iyong mga araw-araw na nakakaranas ng hirap, na hindi maintindihan ang ipinapaliwanag ng ating kagalang-galang na Sponsor, kaya kahit papaano po i-deodorize at i-sanitize ang mga terminong ito ng mga ekonomista, ang kahirapan at kagutumang nararanasan ng sambayanan ay hindi kayang ipaliwanag nito.

On that, I am inclined to perform my duty as Representative to move for the deferment of the budget of the Department of Finance.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

SUSPENSION OF SESSION

REP. DEFENSOR. I move for a suspension of the session, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 6:32 p.m.

RESUMPTION OF SESSION

At 6:43 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

The Majority Leader is recognized.

REP. DEFENSOR. Mr. Speaker, I move that we resume the consideration of the budget of the Department of Finance and continue the interpellation.

THE DEPUTY SPEAKER (Rep. Arbison). Is there any objection? (Silence) The Chair hears none; the motion is approved.

REP. DEFENSOR. Again, Mr. Speaker, I move that we recognize the Hon. Joey Sarte Salceda, for the sponsorship.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Salceda is recognized.

REP. SALCEDA. Thank you.

REP. DEFENSOR. To continue with his interpellation, Mr. Speaker, I move that we recognize the Honorable Casilao.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Casilao is recognized.

REP. CASILAO. With the assurance of the leadership that the concerns I raised earlier will be addressed in a manner that will not delay the proceedings, I withdraw my motion for now, and I will let the Minority Leader proceed with his interpellation.

REP. DEFENSOR. We are grateful to the Gentleman for that, Mr. Speaker, and we assure that his concerns will be taken care of

With that, Mr. Speaker, I move that we recognize the distinguished Minority Leader, the Hon. Danilo E. Suarez.

THE DEPUTY SPEAKER (Rep. Arbison). The honorable Minority Leader, the Honorable Suarez is recognized.

REP. SUAREZ. Thank you, Mr. Speaker. Will the distinguished Sponsor yield?

REP. SALCEDA. Yes, Your Honor.

REP. SUAREZ. The Department of Finance has a proposed New Appropriations of P18.69 billion. Do you agree with the figure distinguished Sponsor?

REP. SALCEDA. Yes.

REP. SUAREZ. This is somewhat higher by 51.2 as compared to 2018. What is the rationale behind the increase?

REP. SALCEDA. Much of the increase, Your Honor, happens at the Bureau of Treasury. In their Maintenance and Other Operating Expense, Your Honor, from P400 million this year, it will go up to P2.4 billion next year essentially to pay insurance for the school buildings and hospitals.

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R E P. S U A R E Z . T h e u t i l i z a t i o n r a t e , distinguished Sponsor, Mr. Speaker, based on Obligations to Appropriations was 86.3, better than the average of the DOF from 2013 to 2106 of 76.6. It has significantly improved. However, it is ironic that, still, there is quite an amount of unused appropriations, especially with the Bureau of Internal Revenue. May we know the reason for this unutilized amount? They do not need the money, Your Honor?

REP. SALCEDA. I think they do. We need more money.

SUSPENSION OF SESSION

REP. SALCEDA. Mr. Speaker, I move for a one-minute suspension of the session.

THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 6:47 p.m.

RESUMPTION OF SESSION

At 6:47 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

The Sponsor is recognized.

REP. SALCEDA. Your Honor, there is 63 percent disbursement as of July this year. I think that is a fairly good utilization for seven months.

REP. SUAREZ. In 2017, the BIR collected a total of P1.78 trillion which is above its target of P1.72 trillion.

REP. SALCEDA. That is correct.

REP. SUAREZ. For the first half of 2018, they have collected P964 billion or 30 percent higher than its target. But I will go back to 2017. Did the BIR reduce their target as originally approved during the DBCC when there was this new administration, distinguished Sponsor, Mr. Speaker?

REP. SALCEDA. I guess not, Your Honor, because in 2016, Your Honor, the budget for 2017 was tackled. It was already by this Congress, under this President, Your Honor.

REP. SUAREZ. Do I have–the message is that 2016, but my question was 2017, Your Honor.

REP. SALCEDA. That is correct, Your Honor, because it was this Congress that approved, including the sources and uses of funds.

REP. SUAREZ. Okay, I will just go straight to the question.

REP. SALCEDA. Yes, Your Honor.

REP. SUAREZ. Was there at any time that you reduced the amount targeted during the DBCC approval?

REP. SALCEDA. Okay, Your Honor. The initial budget call which happens in February, Your Honor, where all the implementing agencies were asked to submit their budgets, the indicative revenues that were sent out in 2016 was P3.039 trillion. However, in June, upon the assumption by this administration, it found those targets to be …

REP. SUAREZ. You are talking of 2016.

REP. SALCEDA. Going into 2017, Your Honor. In short, Your Honor, if you were asking if there was an instance, yes because in 2016 of February, when you usually have your budget call, the indicative revenues that were being sent was P3.039 trillion. By the time this new administration went in, they recast the budget, they reduced that revenue target to P2.427 trillion and actually in 2017 when it came out, it was quite close at P2.473 trillion, or roughly P46.25 trillion. So, it was reduced from P3 trillion to P2.4 trillion, and they were able to exceed it by roughly P50 billion, Your Honor.

REP. SUAREZ. Can I just go to another subject?The House Committee on Ways and Means, Mr.

Speaker, Your Honor, has been deliberating on the House bill, with this Representation as one of the coauthors—though this is what we call a priority bill of the previous leadership of the House—regarding the imposition of a tax amnesty for the taxable period from 2006 to 2016 with an expected result and incremental revenues of P37 billion. May I know the thoughts of the DOF on their expectations in the event that this becomes a law?

REP. SALCEDA. Yes, Sir. In fact, it is called TRAIN 1B. So, it is part of or it is one of the wagons of the TRAIN.

REP. SUAREZ. Will they be comfortable to say that P37.2 billion can be realized?

REP. SALCEDA. Not this year, but next year.

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REP. SUAREZ. Not this year?

REP. SALCEDA. Not this year, but next year, the P37.2 billion is possible.

REP. SUAREZ. Well, this administration is up to 2022, distinguished Sponsor. So, in the event that we do not implement but pass the law on 2018 or early 2019 before we break, then they have all the time, the luxury of time, to come up with when they can have it implemented, Your Honor.

REP. SALCEDA. Your Honor, if it is the belief of the Gentleman, I think that since it is TRAIN 1-B and generally, because there are so many Supreme Court rulings that say essentially taxes are the lifeblood of a country and therefore, cannot be suspended, deferred and even if there is the doctrine of executive discretion, then it is almost compulsory that all taxes must immediately be implemented by any administration, Your Honor. So, there is no such thing as a luxury of time, Your Honor. Once we approve the tax amnesty, Your Honor, it must be executed or implemented by the BIR and the DOF.

REP. SUAREZ. Well, distinguished Sponsor, that is precisely the reason we are saying that this may be an alternative. That instead of passing TRAIN 2 with an incremental, targeted amount, you can come up with an alternative of coming up with an amnesty law because as I have said, we do not impose taxes on a weak economy. But it may be attractive for the Bureau, for the Department, to come up with a revenue measure that can give our tax evaders/avoiders a clean bill of health.

REP. SALCEDA. Yes, Your Honor. In fact, Your Honor, the principal argument, probably, against TRAIN 2 can only be that it is actually negative revenue. Kasi from the start, Your Honor, iyong pambawi natin—mauuna po ang pag-implement noong napakagandang incentive package po ng TRABAHO kaysa po doon sa mga pagbabawian nito. So, Your Honor, tama po kayo na dapat complementary actually po iyong tax amnesty dahil ang estimate ko ho kanina, ang TRAIN 2 ay baka magdagdag ng halos P36 billion na bawas due to higher incentives po, dahil kung iyong mga bagong papasok sa Pilipinas ay hindi na po iyong lumang package ang gagamitin pero pang habang-buhay, kung kundi itong shorter pero napakaganda.

Samakatuwid, Your Honor, in the first 5 to 7 years, Your Honor, baka mayroon pong negative revenue impact po iyong TRABAHO rather than— definitely, Your Honor, it is not an imposition. Hindi po siya imposition, Your Honor. It does not add any tax on anyone. In fact, it reduces the taxes from corporations, but essentially shifting them from those that benefit from

incentives to those that pay the 30 percent corporate income tax, Your Honor.

REP. SUAREZ. Can I go to the Bureau of Customs?

REP. SALCEDA. Yes, Your Honor.

REP. SUAREZ. The Bureau of Customs collected a total of P1.47 trillion. It is P8.1 billion deficit in its collection for 2017 against its target due to the lax in its implementation of customs and tariff rules such as those on overstaying containers in ports and its low auction sales.

What will be the reason of the Bureau for missing their target, Mr. Speaker, distinguished Sponsor?

REP. SALCEDA. For 2017, Your Honor? We will come back to you, Your Honor, to explain the P2 billion difference because, apparently, he immediately focused on operations and indeed, it yielded results because from January to August 2018, iyong kanyang target po is 377 pero he collected 383. So, he is ahead by 4 percent over his target—the new BOC Commissioner, Your Honor.

So, Your Honor, I told him that everytime there are variances, it should be explained from a management audit perspective. We will come back to you, Your Honor, with a one-page report explaining where we missed the P2 billion in 2017.

In short, Your Honor, this year, they are ahead by P5 billion.

REP. SUAREZ. Mr. Speaker, distinguished Sponsor, there is a report that the Customs spokesman and concurrent Port of Manila Collector, Erastus Sandino—do you have that officer in your file, Your Honor?

REP. SALCEDA. Come again?

REP. SUAREZ. Is there an Erastus Sandino working in the Bureau?

REP. SALCEDA. He is here.

REP. SUAREZ. Okay. We call this port shopping, meaning, iyong koleksiyon ng isang port ay nililipat sa ibang port. There was an allegation that he ordered the Pilipinas Shell Petroleum, which is due to pay taxes in the Port of Batangas, to instead pay taxes in the Port of Manila just to, maybe, for purposes of increasing revenue.

REP. SALCEDA. He thinks what he did was

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aboveboard. Why did they shift from Batangas to Manila? Under our CMT, Your Honor, it is the choice of the taxpayer which port he will pay—Sections 400 and 408. So, the PSPC or Pilipinas Shell Petroleum Corporation has the choice of paying in the Port Batangas or in the Port of Manila, Your Honor.

REP. SUAREZ. There was no revenue lost, Mr. Speaker, Your Honor. I am just asking whether it is true that there was a diversion of payment—that is all. If there was a diversion—the petroleum product landed in Batangas but the payment was made in Manila, wala ho tayong pinag-usapan doon. I am just asking—this Representation is asking whether it did happen.

REP. SALCEDA. The vessel docked in the Port of Manila and paid taxes in Manila.

REP. SUAREZ. Last August, Mr. Speaker, Your Honor, this much- publicized shabu shipment—it was seized—has a value of P4.3 billion, this estimated 500 kilograms of shabu. Why is the amount always the same? This is also the same amount of shabu that was seized in our province, 500 kilos. Is there a standard shipment weight when you smuggle drugs, puro 500 kilos, Your Honor?

REP. SALCEDA. I do not know, Your Honor, but as far as I am concerned, from a statistical viewpoint, evil is the most volatile and the most versatile, Your Honor, and therefore, I do not know whether there are standards for what …

REP. SUAREZ. Whatever, Your Honor, this is a big setback for the administration which is quite gung-ho on the elimination of the drug problem, bearing in mind that that was his political promise, “I will stop corruption and drugs”

Okay. Now, Director Aquino of the PDEA said that there was a shabu shipment but there was a statement from the head of the bureau that there was none. Ano ba ang tunay dito, mayroon ba o wala?

REP. SALCEDA. In the facts of the case, Your Honor, there was none.

REP. SUAREZ. So, ang mga magnetic lifter na ito na binuksan because of the allegation that there was shabu, lahat ito ay hindi totoo?

REP. SALCEDA. The dogs can be wrong too, Your Honor. They are not perfect.

REP. SUAREZ. The PDEA will be presenting their budget next week and we will be asking the same question. This is something that is quite alarming,

distinguished Sponsor, because the government agency should be gung-ho in this—they should be joining hands in fighting this very dangerous menace that poses a clear and present danger and yet, this administration does not seem to know what its left hand is doing against its right hand.

REP. SALCEDA. I think, Your Honor, we live in a political economy where there exists a sub-culture which rewards fighting drugs of a higher order but I guess, Your Honor, that the truth is of a much higher order, Your Honor. So, kung minsan, para po lumabas—I am not trying to assign any evil motivation, Your Honor, but it would be natural, if the priority of the State is catching drugs and catching drug lords, then it seems that there is value or may motivation po na sabihin na mayroon. Subalit, Your Honor, the truth should be based on empirical evidence and the empirical evidence says there is none.

REP. SUAREZ. Well, we will take the statement of the good collector but at the same time, this Representation will raise the issue also with the PDEA and General Aquino.

Now, distinguished Sponsor, Mr. Speaker, this Representation filed a bill, and the Sponsor being one of our political and economic experts, does he remember the days when we had SGS servicing our country?

REP. SALCEDA. Yes, Your Honor.

REP. SUAREZ. Was it during your, our time?

REP. SALCEDA. Yes.

REP. SUAREZ. Now, the SGS of Switzerland, I think there are about three corporations in the world that handle this kind of services. Now, the modus is that before a shipment leaves a port of origin, it will be inspected.

REP. SALCEDA. Tama po.

REP. SUAREZ. Then, there will be a thorough evaluation of quantity, identification of goods, and at the same time, a certification of how much taxes should be paid. Now, in the event that the statement is correct that there were drugs that were shipped here, will the Sponsor agree with me that this could have been prevented if the SGS were in effect?

REP. SALCEDA. I think, Your Honor, that adds another cordon that will essentially protect us and ako personally, I am in favor of the SGS but only for the China trade, Your Honor, knowing the kind of transactions …

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REP. SUAREZ. May we know the position of the head of this agency that you are sponsoring if we will put back the SGS service to be our watchdog on customs activities?

REP. SALCEDA. Ang sabi niya po, ang SGS, based po sa customs administration trends globally…

REP. SUAREZ. May we know the position of the distinguished Secretary if he will be in favor of that.

REP. SALCEDA. Ang sabi po niya, iyong customs administration trend sa mundo, the SGS has become less effective, but I will ask the Secretary, Your Honor. Iyong Secretary po ay mukhang mas open. He says that will study it and see whether it will be effective in curtailing drug shipments, Your Honor.

REP. SUAREZ. Thank you, distinguished Sponsor.On several occasions, I was assured by the good

Secretary that my favorite bill that was made into law, will be implemented by these two bureaus, which is the Attrition Law, plain and simple reward and punishment. With the target amounts being collected by these two agencies, it looks like that they are not subject to attrition. Just for the comfort level of having a law that should be implemented to be a safeguard on our revenues, may this Representation be informed on when I can get the target amounts and the implementing date when the Attrition Law can be implemented, Mr. Speaker, distinguished Sponsor.

REP. SALCEDA. Your Honor, naka-anim na pong RPEB so, iyong IRR po ay na-finalize na. So, I guess, Your Honor, if it will suffice that we at least provide the Gentleman a documentary copy of the output of the RPEB prior to its implementation—so that we can get your inputs, Your Honor, on exactly how we can go forward. Your Honor, the mere fact that the RPEB has met for six times and made serious attempts to come up with an IRR for that Attrition Law—which I have known to be actually quite successful in the BIR and the Customs Bureau, I guess, Your Honor, it is a serious step forward in implementing the law which he authored.

REP. SALCEDA. Thank you.

REP. SUAREZ. Can I go back, can I just go to another issue? This is about the case of Mighty cigarettes. With my limited knowledge on this—because this Representation filed a resolution when this issue was quite heatedly being debated but I was asked by the leadership just to allow the compromise that is being offered by the corporation—is the violation of this company, with regard to whether it is fake or it has no stamp, a criminal act?

REP. SALCEDA. Under the Tax Code, Your Honor, the affixing of fake tax stamps on goods is a criminal act.

REP. SUAREZ. So, that has been precisely the reason there was a compromise—there was an acceptance that, indeed, a criminal act did occur in that company. Am I correct there?

REP. SALCEDA. Under the Tax Code, Your Honor, the Commissioner has the authority to essentially extinguish the criminal liability based on a reasonable...

REP. SUAREZ. So, now, is this company still involved in the industry because I clearly read in one of the provisions of the settlement that the company will not be involved anymore in any business of cigarette making. Am I correct there?

REP. SALCEDA. The Mighty Corporation is no longer in business in the Philippines. Under the new owner, Your Honor, it is probably selling a different brand or it has a different corporate setup, Your Honor.

REP. SUAREZ. Well, I think Japan Tobacco came into the picture and bought all the assets of the Mighty Corporation. Is that correct?

REP. SALCEDA. That is right, Your Honor. REP. SUAREZ. With the understanding that

the previous owner will not be involved with this buyout.

REP. SALCEDA. That is right, Your Honor.

REP. SUAREZ. Is it happening?

REP. SALCEDA. I think so, Your Honor. Doon po sa Albay, alam ko malakas na malakas iyong Mighty noon pero ngayon po ay wala na akong nakikita, Your Honor. Iyong puti na maliliit, wala na sa amin po.

REP. SUAREZ. Malakas pa rin, Your Honor.

REP. SALCEDA. Sa inyo?

REP. SUAREZ. Everywhere, when the Japan Tobacco entered the market. It has really a good market.

REP. SALCEDA. Iyong Japan po, opo, pero iyong Mighty as I know it— kasi kahit po iyong pa-basketball namin, pinapasok po nila noon kasi ang laki...

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REP. SUAREZ. Hindi. Ang hina-highlight ko lang dito, here we are banging each other’s head to make sure that the revenue should improve and we come up with provision that will make tax evasion or avoidance a deterrent. Hindi ho ba? Then here comes a company that is using fake stamps but just gets a slap on the wrist—you just slap the wrist, pagkatapos bayad ng penalty, kasama ang areglo.

REP. SALCEDA. In our history, Your Honor, P25 billion is the highest amount of compromise.

REP. SUAREZ. We even marvel with the amount that was paid there as a collection. Nakakahiya iyon na sasabihin natin, “Nakakakolekta tayo dahil may nahuli tayong nag-evade at gumamit ng fake stamps.”

REP. SALCEDA. Opo. I share the direction where the Minority Leader is trying to direct me.

REP. SUAREZ. Now, my last question. Si Pangulong Duterte, Mr. Speaker, distinguished Sponsor—we have this ICC. Ito ang International Commission on Human Rights, hindi ho ba?

REP. SALCEDA. Criminal Court.

REP. SUAREZ. Ano ho ito? Baka alam ho ni Congressman…

REP. SALCEDA. International Criminal Court.

REP. SUAREZ. Iyong nag-iimbestiga ng mga EJK natin.

REP. SALCEDA. Opo.

REP. SUAREZ. Binalewala iyon ni Pangulong Duterte because sabi niya, “Ano ho ba ang mahalaga, iyong buhay o iyong …”— ano nga iyon?

REP. SALCEDA. Dignity.

REP. SUAREZ. Opo.

REP. SALCEDA. Human rights or human lives.

REP. SUAREZ. Yes, human rights. Ang thinking po ng Pangulo is, which I will repeat maybe for the nth time, kung hindi ho naging Pangulo si Digong ay narco-state na tayo ngayon. Would the Sponsor agree with me on that? Ah, napakalakas na po. Kahit ngayon, I think the President underestimated the strength, the connection and the influence of this drug issue and he is having a tough time and he said, “I underestimated their clout.”

Ngayon, ang point ko lang dito, Your Honor, is this—nilabanan niya iyong isang organization dahil sa pinoprotektahan niya ang interest ng taong-bayan. Ngayon, ang tanong ko ay ito: Kung tayo ay nangungutang, tayo ay diniditiktahan ng IMF-WB kung saan tayo mangungutang at magkano ang interest ng ating uutangin. Tama po ba ako roon?

REP. SALCEDA. Hindi na po.

REP. SUAREZ. Can you ask again the good Secretary because that is not the answer.

REP. SALCEDA. Sila na po ang pinapautang natin. We are now lending to the IMF. In fact, Your Honor, …

REP. SUAREZ. Can we borrow whenever we want to borrow?

REP. SALCEDA. Yes, Your Honor, that is a result of the RVAT we passed in 2005, and which the Gentleman supported when he was our colleague here, Your Honor. I can say that, truly, Your Honor, because having worked in the financial market, Your Honor, I know when a certain measure—the RVAT was not an IMF measure, Your Honor.

REP. SUAREZ. Then, I will divert the issue.

REP. SALCEDA. Yes, Your Honor.

REP. SUAREZ. During the budget hearing, I asked the question—there is something that you cannot change and that is time.

REP. SALCEDA. Yes.

REP. SUAREZ. When a clock passes and it says, “tick, tick, tick,” iyong nakaraan na “tick, tick, tick” ay hindi na babalik.

REP. SALCEDA. Opo.

REP. SUAREZ. And I said, “Here we are trying to make lives better for our rural areas, but we are curtailed by the fact that we cannot spend as much we can” because we are being told: “This is the only amount that you can spend this year.” We are being limited because there is reason, iyong sasabihin nating percentage of expenditures against revenue, percentage of revenue of expenditure against what is being dictated by our lending institution. Hindi po ba?

REP. SALCEDA. Actually, Your Honor, pagdating sa public expenditure to the total GDP, Your Honor,

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we are still suboptimal, mababa pa po. Ang curtailing factor, ang constraining factor po ay deficit to the GDP, Your Honor. So, halos sa lahat po na comparison tulad ng gastos sa education, mababa po tayo sa optimal. Pagdating po sa infra, mababa tayo, suboptimal. Pagdating po sa health, mababa tayo, suboptimal.

Ang bottom line po niyan, Your Honor, is we are not raising enough revenues, so that our deficit to the GDP will be reasonable doon po sa credit markets kasi kung itaas mo naman—kasi ako, dati naniniwala na puwede ko po iyan ipalo ng 4.2 kasi iyon ang average ng buong region. Dito ngayon na kung saan tayo, we are swimming in a region with an average deficit to GDP…

REP. SUAREZ. If I may intervene, distinguished Sponsor, you are contradicting your previous answer.

REP. SALCEDA. No, Sir. I am saying that, in fact, ang curtailing factor po sa atin ay deficit to the GDP.

Iyong pag-gastos po natin, basahin natin lahat ang policy patungkol sa Pilipinas, at laging sinasabi that we should spend more in agriculture, spend more in infrastructure et cetera, but we are suboptimal in almost all typologies of expenditures simply because we are not raising the correct revenues. Kaso, kung ano lang ang available diyan, katulad ngayon na 17.1 percent lang po ang total revenue to the GDP, plus 3 percent acceptable deficit to the GDP, this entire Philippine budget is 20 percent of its total GDP, Mme. Speaker, Your Honor. That is the Philippine budget, Your Honor.

REP. SUAREZ. Hindi, ang sinasabi ko nga po sa inyo, Mr. Speaker, distinguished Sponsor, is that dictated pa rin tayo ng policy of what you have just elucidated.

REP. SALCEDA. Okay, Mr. Speaker, Your Honor.

REP. SUAREZ. You have a district, Mr. Speaker, distinguished Sponsor.

REP. SALCEDA. Yes.

REP. SUAREZ. In Albay.

REP. SALCEDA. Yes.

REP. SUAREZ. Marami kang gusto pagawa sa iyong barangay.

REP. SALCEDA. Opo.

REP. SUAREZ. Flood control, farm-to-market, irrigation—diyan pupunta ang pera mo. Bakit? Kasi curtailed tayo at ito lang ang puwede mong gastusin.

REP. SALCEDA. Tama po.

REP. SUAREZ. Mapapabalik mo pa ba iyong panahon na puwedeng magtanim ang mga magsasaka dahil may irrigation na, o mag-aantay ka na muna magkapera para magka-irrigation ka?

REP. SALCEDA. Tama po kayo diyan. In fact, Mme. Speaker, Your Honor, I will support that notion kasi nga ang internal rate of return ng any expenditure by the government right now is much higher than our rate of borrowing. In other words, it is far better for the future that we build all this capital expanded productive capacity because it enhances the potential of the future of our children. There is no debate, Mr. Speaker, Your Honor, on that. What I am trying to say is that the curtailing factor in our ability to spend more is the deficit to the total GDP.

REP. SUAREZ. Mr. Speaker, distinguished Sponsor, I will ask a plenary Page and the Secretariat to give me a recording of your answer and if my barangay will ask me, “Congressman, bakit po sila pinaayos ninyo iyong FMR at saka flood control. Bakit kami wala?”—ipi-play ko iyong tape mo.

REP. SALCEDA. Yes, Mr. Speaker, Your Honor, I am not running for Senator.

REP. SUAREZ. That it is the deficit to the GDP. Napakahirap pong ipaliwanag and this Representation really is at loss. Then you go back to the fact that we are being dictated on how much money we are allowed to spend.

REP. SALCEDA. Okay. Yes, po.

REP. SUAREZ. At the end of the day, ganoon pa rin tayo.

REP. SALCEDA. Yes.

REP. SUAREZ. I hope the time will come that—maybe, with these 3 years of good governance, we have a good President, we have a dynamic Secretary so far, the BIR and the Customs are okay, ay makaka-recover tayo and hopefully our wish of better living conditions for our constituents will come true …

REP. SALCEDA. I am telling you that I think…

REP. SUAREZ. Mr. Speaker, Your Honor, although I am not satisfied with all the answers of the Sponsor, it is already 7:23 pm. On behalf of the Minority, I do not have any more questions to raise on the proposed budget of the DOF.

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THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. ROMERO. Mr. Speaker, inasmuch as there is no other Member who wishes to ask questions, the Majority joins the Minority in terminating the period of interpellation and debate on the budget of the Department of Finance and all its attached agencies, namely: BIR, BOC, BTr, BLGC, IC, SEC, DBP, LBP and the PDIC.

THE DEPUTY SPEAKER (Rep. Arbison). There is a joint motion to terminate the period of interpellation and debate on the budget of Department of Finance. Is there any objection? (Silence) The Chair hears none; the motion is approved.

Congratulations! (Applause)

SUSPENSION OF SESSION

REP. DEFENSOR. I move for a suspension of the session, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 7:24 p.m.

RESUMPTION OF SESSION

At 7:29 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed

The Majority Leader is recognized.

DEPARTMENT OF FOREIGN AFFAIRS

REP. DEFENSOR. Mr. Speaker, I move that we take up the budget of the Department of Foreign Affairs, including its attached agencies.

THE DEPUTY SPEAKER (Rep. Arbison). Is there any objection? (Silence) The Chair hears none; the motion is approved.

REP. DEFENSOR. Mr. Speaker, to sponsor this budget, I move that we recognize the Hon. Carlos O. Cojuangco.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Cojuangco is recognized.

REP. COJUANGCO. Mr. Speaker, it is my honor and privilege to present the budget of the Department of Foreign Affairs. I would like to ask for some leeway from our colleagues, considering that Sec. Alan Peter

Cayetano is a former colleague of this august House, if we can proceed expeditiously so that the Secretary can attend to his other functions and duties.

Thank you, Mr. Speaker.

REP. DEFENSOR. Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. DEFENSOR. The first to interpellate, I move that we recognize the Hon. Salvador B. Belaro Jr.

THE DEPUTY SPEAKER (Rep. Arbison). Congressman Belaro is recognized.

REP. BELARO. Good evening, Mr. Speaker, distinguished Sponsor.

This Representation recognizes the fact that among the agencies of the government, the Department of Foreign Affairs is one of the most important in showing our face to the world. This is important and it is the fervent belief of this Representation that we have to arm them with sufficient wherewithal to be able to do their functions.

Ito pong Representasyon na ito authored a bill on the upgrading of salaries of our foreign service personnel. My first question: ano po ang status ng ginagawa ng Departamento para sa upgrade ng pasuweldo ng ating mga foreign service employees?

At this juncture, Deputy Speaker Arbison relinquished the Chair to Deputy Speaker Sharon S. Garin.

REP. COJUANGCO. Mme. Speaker, Your Honor, thank you for your question.

Every two years, the salaries of people in the Department are periodically reviewed to see if there are adjustments that need to be made and we were just informed that the same has not transpired in the last five years. However, the Executive Department or Malacañang is doing something at this time.

REP. BELARO. Mme. Speaker, distinguished Sponsor, my corollary question is: how is that aspiration reflected in the proposed budget of the DFA?

REP. COJUANGCO. It is included in the MPBF portion of the budget.

REP. BELARO. At this juncture, Mme. Speaker, may I manifest that the good Committee kindly take a look at the proportionality of the proposed budget of the DFA with respect to the vision to upgrade the salaries of our foreign service personnel.

Thank you, Mme. Speaker.

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REP. COJUANGCO. Yes, Mme. Speaker, Your Honor. We will look into that particular item. In the meantime, we would also be able to go to some other concerns.

REP. BELARO. With that assurance, Mme. Speaker, distinguished Sponsor, this Representation would like to rest with confidence because the there are bills pending in the Committee on Foreign Affairs right now and I just believe that we have to do a complementary endeavor with respect to this so that it would be ideal if the Department of Foreign Affairs would do its own homework in providing technical support for these legislative actions.

At this juncture, Deputy Speaker Garin (S.) relinquished the Chair to Deputy Speaker Munir M. Arbison.

REP. COJUANGCO. Yes, Mme. Speaker, Your Honor. Can he give time to the Department, let us say by Tuesday, to provide that information to him.

REP. BELARO. That is fair enough, Mme. Speaker.

REP. COJUANGCO. Thank you, Mme. Speaker, Your Honor.

THE DEPUTY SPEAKER (Rep. Arbison). The distinguished Sponsor is recognized.

REP. BELARO. Mme. Speaker, distinguished Sponsor, how many embassies and consulates do we have in the world?

REP. COJUANGCO. We have 85 foreign posts, Mr. Speaker.

REP. BELARO. So, 85 foreign posts. As I have said a while ago, these entities are our face to the world and they reflect us. If they are bad, we are perceived as bad by the world. If they are good, we look so good in the eyes of the world. Now, the question is: how do we rate their performance? Do you have standards for evaluating the performance of these embassies?

The problem with long distance entities is that you really have to trust them. May I repeat the word “trust” because they are without the arm supervision of the Department and of course, I know Secretary Cayetano to be a very hardworking person, but he cannot extend his body to supervise the chain of minute details in each of these agencies. So my question is, again, what are the standards that we use in evaluating the performance of each of these consulates and embassies?

REP. COJUANGCO. Mr. Speaker, Your Honor, the primary modality of the rating is based on their performance on economic issues, OFW issues and the diplomatic accomplishments of the posts.

REP. BELARO. That would, I think, constitute one of the objectives of the embassies and consulates. May I add—I guess if these embassies and consulates will also be concerned about the welfare of our overseas Filipinos in their areas of jurisdiction, perhaps, if I may venture, that they should also be concerned about the promotion of Philippine developmental programs within the host countries. Do you agree, Mr. Speaker, distinguished Sponsor?

REP. COJUANGCO. Yes, Mr. Speaker, Your Honor, I agree.

REP. BELARO. To be able to do all those programs, I suppose that there has to be a budgetary match for these for the accomplishment of their goals. Do you believe, Mr. Speaker, distinguished Sponsor, that they correspond to apples to oranges with respect to the goals that the Department and these consulates and embassies would like to accomplish within their respective areas?

REP. COJUANGCO. Mr. Speaker, as the distinguished Gentleman has mentioned earlier, the DFA is one of our important departments and if I may add, also one of the over-performing departments given the resources at their disposal.

The DFA’s requested budget is a total of P27,334,935,000, that is, to accomplish a wide range of missions in the different posts; and it also includes the opening of a few new posts. In this budget process, we have seen that there have been some cuts, some more than others. So with that, I am sure the Department is always ready to function, the best it can, with the resources given to it or approved in our process.

REP. BELARO. Mr. Speaker, distinguished Sponsor, there is really no way to validate the performance of these embassies and consulates except if we could ask them for a report on their performance, at least, for the past 3 years.

This Representation is also a member of the Committee on Foreign Affairs, and because I have taken upon myself to really work for the welfare of the Filipinos, as well as the welfare of the foreign service personnel, may this Representation kindly request for a report from each of these embassies and consulates with respect to their performance.

REP. COJUANGCO. Yes, gladly, Mr. Speaker, the Department will furnish the Committee on Foreign Affairs with the said requested data.

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REP. BELARO. Mr. Speaker, distinguished Sponsor, this Representation also happens to be one of the Representatives of the education sector in Congress, and it is a distinct interest on the part of this Representation to look into the education of our overseas Filipinos, as well as of our countrymen.

The question is, and that is why I am interested in the report that they will submit to this Committee and this Representation, what are these consulates and embassies doing for the cause of education of our overseas Filipinos, as well as the OFWs who are going back home?

REP. COJUANGCO. Your Honor, are you referring to Filipinos going abroad for further studies or trainings, or are you referring to OFWs who have finished their contracts and are coming back and are required to have further trainings or education here in the country?

REP. BELARO. Either way, Mr. Speaker, distinguished Sponsor, because education is a seamless concept, you could take education in the host countries or education here. By way of a background, let me share, Mr. Speaker, distinguished Sponsor, that this Representation authored a bill on the creation of education attachés. Meaning, that we would be empowering our Department of Foreign Affairs employees or staff in the foreign countries to take care of the educational concerns of our overseas Filipinos, and at the same time, this Representation also filed a bill on education tourism to promote the Philippines as an educational hub. Many cities in the Philippines like Naga City, Legazpi City, Laoag City, you know, they are hosts to several very good universities and colleges and if you go to these places, there are foreigners coming there. My thinking is that this could be a good source of income for the Philippines, so why not capitalize on it, considering that we have the English advantage. This is an advocacy of this Representation and that is why I would like to see that in the programs of these consulates and embassies.

REP. COJUANGCO. As promised, Your Honor, those data will be provided to you and the Committee on Foreign Affairs, and I also hasten to add that the Department also has examples of what you have enumerated. For example, in Hong Kong, they have a tie-up with a local university that caters to our kasambahay OFWs who would like to further their academic needs. So, that is an example of what I think what you are alluding to.

REP. BELARO. Thank you. That is very reassuring, distinguished Sponsor, Mr. Speaker. I believe the sincerity of that will be reflected in the report which I am eagerly awaiting from the good Department.

REP. COJUANGCO. Yes, Your Honor.

REP. BELARO. By way of my final question, Mr. Speaker, may I relate a particular incident with respect to the consulate of the United Arab Emirates in Dubai. What triggered this personal experience of mine was a letter reporting to our office about trafficking—I did not realize at that time that it was so pervasive already in the United Arab Emirates and I think the figure reported was 250 going to United Arab Emirates, that they are basically lacking proper documentation. So, my question is, what is the consulate in UAE doing about this problem of human trafficking?

REP. COJUANGCO. So, Your Honor, just to clarify, you know of 250 Filipino nationals who were able to travel to the UAE and are victims of human trafficking. Is that correct, Sir?

REP. BELARO. Yes, Sir. That was the content and nature of the information that the office of this Representation received. If this Representation may add, Mr. Speaker, it so happened that at the time that I received this report, there was a concert, I think the consul has a preoccupation for big concerts there— Arci Muñoz and Martin Nievera—and I believe that these things should not happen under his very nose. That is a sad concern. I have not met him personally but I guess, in the proper order of things, he should have first attended to this problem of human trafficking before indulging in such activities, Mr. Speaker, distinguished Sponsor.

REP. COJUANGCO. Your Honor, we could say human trafficking is an international crime, an international pariah, and therefore, we or our country does not support that. If our nationals are willing to venture into foreign lands and, for lack of a better word, circumvent the proper procedure in travelling to those lands and are caught, then they have committed an illegal practice or an illegal act in the host countries.

What the DFA is doing, which is a part of their mandate, is to at least assist in the repatriation back to the Philippines of those individuals. That is why it is always better to go through the proper procedure than go off on an adventure where you do not know what is going to happen to you, Your Honor.

REP. BELARO. With that clarification, distinguished Sponsor, Mr. Speaker, this Representation rests his case, with the fervent hope of awaiting the report of the embassies and consulates to be sent to his office and to this Committee.

Thank you po.

REP. COJUANGCO. Thank you, Your Honor.

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THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. DEFENSOR. Mr. Speaker, the next to interpellate is the Hon. France L. Castro. I move that the Lady be recognized.

THE DEPUTY SPEAKER (Rep. Arbison). The Hon. France Castro is recognized.

REP. CASTRO (F.L.). Salamat po, G. Ispiker, Mr. Sponsor.

Ang mga katanungan ko lang po ay iyong tungkol sa or follow-up lang po about job orders and contracts, mga contractuals po natin doon sa DFA. Isa po ito sa tinanong ko last year. Isa po ang DFA na may mas maraming mga contractuals and JOs kaya ano na po ang status ng mga personnel po natin?

REP. COJUANGCO. Your Honor, if I just may clarify, is this part of the COA findings or something separate?

REP. CASTRO (F.L.). It is separate.

REP. COJUANGCO. Thank you, Your Honor.

SUSPENSION OF SESSION

REP. COJUANGCO. May I move for a one-minute suspension of the session.

THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 7:48 p.m.

RESUMPTION OF SESSION

At 7:48 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

The Sponsor is recognized.

REP. COJUANGCO. Your Honor, there are 704 slots that have appropriations for this year’s budget. So, the Department is in the process of filling up those 704 slots, the bulk of which in the passport section of the DFA.

REP. CASTRO (F.L.). So, what is the status? Are they given plantilla positions, these 704 personnel?

REP. COJUANGCO. Yes po.

REP. CASTRO (F.L.). Okay. Thank you, Mr. Speaker, Mr. Sponsor.

In the budget of the DFA, I have noticed an increase in the Office of the Secretary and the UNESCO National Commission of the Philippines, but there is slight decrease in the Foreign Service Institute and the Technical Cooperation Council of the Philippines. Ano po ba ang changes na ito, o ano na ang magiging epekto po nito doon sa services po natin sa Department of Foreign Affairs?

REP. COJUANGCO. Mr. Speaker, the Foreign Service Institute is like the DFA academy. I personally believe it is important because it will help train our career diplomats before their deployment abroad. However, this was also one of the items that were not considered for Tier 2.

REP. CASTRO (F.L.). Mr. Speaker, mahalaga po ito, hindi ba? Marami kasing mga observations po na iyong ating mga diplomats abroad ay kulang ng skills o kakayahan na mag …

REP. COJUANGCO. Opo, kung hindi po kulang ay puwede naman pagbutihin pa.

REP. CASTRO (F.L.). Opo. Kaya mahalaga sana na ang services na ito ay mapagtuunan ng pansin at mapondohan siyempre.

REP. COJUANGCO. Sa tulong po ng Minoridad at sa Majoridad, baka po puwedeng hanapan ng pondo para madagdagan po iyan.

REP. CASTRO (F.L.). Ganoon din po, Mr. Speaker, doon sa provision of consular services including the issuance of passports, visas and other consular documents, bumaba po ito ng about 15 million. Ano po ang magiging effect nito sa services dito sa programa natin.

REP. COJUANGCO. May I just read a report from the Department on the actions taken to streamline the passport and renewal process: First, redesign the system to allow applicants to see, at first glance, which dates have available slots and which date has the second available appointment. Before, you need to click on every date. Second, put a feedback mechanism that ensures that applicants are told if there is a problem with their application and what they need to do to resolve the problem. The email is sent within 48 hours after application is evaluated. Before, the process was that the applicant finds out on the day he is claiming his passport. Third, they have also redesigned the system to prompt those entitled to use the Courtesy Lane, that they do not need to secure an online appointment. Before,

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even those entitled to use the Courtesy Lane made online appointments. Fourth, there is also an increase in the bandwidth of the online appointment system. They have deployed, in Aseana, roving staff to answer questions and render assistance immediately. They also provided tents, aircon units and electric fans, and some simple refreshments at Aseana waiting areas.

From January to August 2017, there were 2,516,614 passports issued. For the same period in 2018, that number increased to 2,865,993 or an increase of 349,379, equivalent to 13.88 percent increase. Before the present Secretary came to the DFA, the daily capacity was only 9,000 passports. In 2017, the daily capacity increased to 10,500: 9,000 through online appointment and 1,500 through walk-in appointment. As of today, we have increased the capacity to 19,000 daily: 12,000 through online appointment system; 1,000 first-time OFWs through licensed recruitment agencies; 4,000 Passport on Wheels; and 2,000 walk-in, for a total of 19,000. The total mentioned does not include, yet, the 2,000 applications on Saturdays; the 8,000 daily applications from the 8 new COs to be opened; and the 1,600 daily applications from the two megavans deployed.

The Department opened 10,000 appointment slots from July to November, Monday to Saturday, except holidays: 5,000 at 12:00 noon and 5,000 at 9:00 p.m. The earliest available date in the online appointment system will be this coming October 9. Iyon po ang update nila.

REP. CASTRO (F.L.). Thank you, Mr. Speaker, Mr. Sponsor.

Nakakatuwa naman po na iyong ating sistema sa passport issuance ay naging efficient. Ang tanong ko ko lang po, bakit po ang DBM, despite this performance dito sa program natin on the provision of consular services like passports, et cetera, ay binabaan pa iyong budget. Hindi po ba?

So, ito ba ang prize sa pagiging efficient ng DFA? Ang DBM, binabaan pa nga po ang budget despite this performance. Ano po ang rason?

REP. COJUANGCO. Ako po ay sang-ayon sa inyong obserbasyon at nakakapagtataka po na ang magandang gawain ng isang departmento, imbes na dagdagan ang bilang ng insentibo para mas marami pa nga pong matulungan, nabawasan pa po. Siguro po, may mga rason din po ang ating mga economic managers kung bakit ito po iyong mga hakbang na ginawa po nila pero wala po iyang impormasyon sa Representanteng ito.

REP. CASTRO (F.L.). Tama po, kasi ang policy natin sa budgeting this year ay performance at saka doon sa paggamit ng pondo o ang mabilis na paggamit

ng pondo. Anyway, nakakatuwa po ang inyong balita tungkol doon sa passport issuance kasi iyan naman iyong pinakamahalaga din sa mga manggagawa natin, sa mga mamamayan natin, na makakuha sila ng passport.

Doon na po tayo sa ilang mga findings ng COA, ang status po ng mga findings at paano po natin ikokorek. Unang-una, Mr. Sponsor, Mr. Speaker, is about the P112 million retirement benefits of OFWs. Ang sabi po ng COA, it has called out the Department of Foreign Affairs for P112.2 million worth of benefits for the overseas Filipino workers which remain unclaimed and unreleased for more than 10 years. The COA noted that from 1997 to October 2016, a total of P1,095,976,467.06 was remitted by various DFA foreign service posts to the DFA - Office of the Undersecretary for Migrant Workers’ Affairs or the OUMWA as End of Service Benefits or ESB for the retiring OFWs or for those whose contracts were terminated. The audit body said that the OUMWA, which is tasked to process the releases of the claims of the OFWs or the beneficiaries of the deceased OFWs, was only able to disburse P985,511,690.98 as of October 31, 2016, leaving a balance of P112 million and more.

May I know the status of this observation at ilan pa po ba iyong hindi nakakakuha ng claims for our OFWs?

REP. COJUANGCO. Iyong exact number po will be furnished po sa inyo ng Department. For that funds po, a majority of the beneficiaries were deployed to Saudi Arabia, and there are mainly two factors that delayed the releases of those funds: the first is the claimant is no longer following up the claim. The second is that there are multiple individuals claiming the benefits of a particular OFW.

REP. CASTRO (F.L.). Dito po sa una ninyong dahilan—the claimant did not follow up their readied claims.

REP. COJUANGCO. Hindi na po sumisipot, hindi na po nagpapakita.

REP. CASTRO (F.L.). Hindi ba mayroon din tayong responsibility na hanapin sila kasi entitled sila sa ganitong benefits? Maski kanilang pamilya man lang. Mayroon pa ba tayong mekanismo?

REP. COJUANGCO. Tama po. Sinisikap po ng Departamento pero siyempre po mas madali kung habang hinahanap ay nakakalapit din po sila, kasi po dapat alam din po nila na mayroon ding ibabalik sa kanila iyong gobyerno. Ngayon, halimbawa ay na-inform na po ng ahensiya pero busy po sila o nasa ibang bansa na po sila, baka iyon ang isang rason kaya hindi nila nababalikan iyong naghihintay na pondo para sa kanila.

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REP. CASTRO (F.L.). Okay. So, sina-suggest po ng Representasyong ito na sana po ay mapakinabangan ito by way of following up iyong ating mga claimants. Iyong sinasabi ninyo po, totoo naman na responsibility ng claimant ito pero marami po tayong mga OFW, lalung-lalo na po iyong mga domestic workers at mga iba pang mga workers natin. Baka hindi nila alam, lalung-lalo na iyong kanilang pamilya, na mayroong ganito. So, may mga ganoon pong mga kaso.

REP. COJUANGCO. Sige po, baka po puwedeng i-furnish din ang honorable Congresswoman ng listahan noong natitirang beneficiaries doon sa natitirang pondo.

REP. CASTRO (F.L.). Okay. Thank you, Mr. Speaker, Mr. Sponsor. Ito po, iyong pangalawang COA report ay tungkol po doon sa P44.8 million unused blood money. The Commission on Audit has demanded the return to the National Treasury of some P44.8 million in blood money that remains unutilized and unable to save the lives of two overseas Filipino workers who were executed in the Middle East in 2015 and 2017. So, may we know the status of the fund, Mr. Speaker.

REP. COJUANGCO. Mr. Speaker, with regard po sa subject ng tinatawag na blood money, iyong iba po, baka hindi na po nakaabot doon sa tutulungan sana na OFW. Baka na carry-out na po iyong sentensiya. So, ang ginagawa po ng Departamento, iniipon po iyan, niro-roll over po para may pondo para sa mga taong aabutan pa ng panahon.

I think this particular item has also incurred some cuts. So, the Department is trying to make ends meet by rolling it over.

REP. CASTRO (F.L.). Mayroon na ba tayong detalye nitong 2015 and 2017 incidents with Filipino workers? Sabi po kasi ng COA dito, dapat maibalik ito doon sa National Treasury just in case na hindi ito nagamit.

REP. COJUANGCO. I think po at the end of this year, they will account and return back the unused portion to the Treasury. However, they will try to make an appeal also na kung puwede ay bigyan ng dispensa iyong partikular fund na iyon para puwedeng i-roll over kasi po hindi naman natin po nahuhulahan kung magkano ba talaga ang blood money na kailangan sa isang taon. Pabago-bago po iyan. Hindi naman po iyan pare-pareho every year.

REP. CASTRO (F.L.). Okay. Bigyan ninyo na lang po ako ng update tungkol dito, Mr. Sponsor.

REP. COJUANGCO. Opo.

REP. CASTRO (F.L.). Another one po ay iyong donations for typhoon victims. So, sabi po ng COA, according to a news report:

The Commission on Audit has flagged the failure of the Philippine Embassies and Consulates to remit cash assistance intended for overseas Filipino workers and their families, as well as for typhoon victims. In its 2017 audit report on the Department of Foreign Affairs, the COA said that there is a total of P9.776 million was received by foreign service posts around the world representing end-of-service benefits for deceased OFW from their employers. Government auditors said that in 2017, the Consulate General in Jeddah received P3.787 million. The total amount also included benefits for 2015 and prior years amounting to P5.988 million, which also remained unremitted by the embassies in Abu Dhabi x x x.

May we know also the status of these funds?

SUSPENSION OF SESSION

REP. COJUANGCO. May we request for a one-minute suspension of the session.

THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 8:05 p.m.

RESUMPTION OF SESSION

At 8:06 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

REP. COJUANGCO. There is a listing here that indicates that money from donations from the foreign service posts in San Francisco, Berlin, Brussels and New Delhi for typhoons Haiyan and Ondoy victims were remitted to the Treasury already. From Jeddah, there is an amount of P170,139—sorry, P170,139.81 for the benefit of OFW Mr. Wilfredo Benales. They were made to return the funds …

REP. CASTRO (F.L.). Mukhang hindi po nagtatagpo iyong ating data. Ang sabi po dito, from Jeddah, they received P3.787 million. So, iyong binabanggit ninyo lang po ay in thousands?

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REP. COJUANGCO. Mr. Speaker, are we talking of benefits for typhoon victims and financial support for individuals that were not paid or remitted?

REP. CASTRO (F.L.). Yes, benefits.

REP. COJUANGCO. The total here is only P947,049.40. The P3,787,816.98 is for service benefits.

REP. CASTRO (F.L.). Okay.

REP. COJUANGCO. So, they are not the same po.

REP. CASTRO (F.L.). May we ask the Sponsor, through the DFA, to submit the report on this.

REP. COJUANGCO. Okay. Yes po.

REP. CASTRO (F.L.). How about the benefits for 2015 and prior years amounting to P5.988 million, which also remained unremitted by the embassies in Abu Dhabi?

REP. COJUANGCO. Mr. Speaker, Your Honor, can you repeat the question?

REP. CASTRO (F.L.). How about the total amount of P5.988 million, which included the benefits for 2015 and prior years, which also remained unremitted by the embassies in Abu Dhabi, Abuja, Bangkok, Cairo, Doha and New York, and other Arab countries?

REP. COJUANGCO. Mr. Speaker, the entry for the Philippine Embassy in Abu Dhabi, out of the P5.988 million, only amounts to P29,246.03. Is that correct po?

REP. CASTRO (F.L.). Okay. So, bigyan ninyo na lang po ako ng report tungkol dito sa status po nito.

REP. COJUANGCO. Yes, Mr. Speaker.

REP. CASTRO (F.L.). For compliance. Okay. So, Mr. Sponsor, iyon lang po iyong aking mga katanungan.

Maraming salamat po sa ating G. Isponsor, Mr. Speaker.

REP. COJUANGCO. Salamat din po.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. DEFENSOR. Mr. Speaker, the next to interpellate is the Gentleman from ANGKLA. I move that we recognize the Hon. Jesulito A. Manalo.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Manalo is recognized.

REP. MANALO. Thank you, Mr. Speaker. I just want to make this brief manifestation on behalf of the maritime sector, particularly the seafarers, that contribute close to US$5.8 billion to our economy.

It is unfortunate, Mr. Speaker, that the DFA has—as of this date, I do not see a budget for the creation of the IMO post which is very critical to the maritime industry, the industry that supports us. The Philippines is actually no. 4 in the world when it comes to the number of seafarers on board all vessels. So, it has been our position that the DFA should create the IMO mission to strengthen the Philippine position when it comes to maritime, but to this date, Mr. Speaker, there is still no post despite the huge sea-based OFWs’ contribution to the economy. May I know from the distinguished Sponsor the action taken by the DFA, why as of this date the post has not been created.

REP. COJUANGCO. Up to this day, the post has not been created, Mr. Speaker, due to the numerous budget cuts. So, it is on the wish list of the Department because it is, in fact, a very effective office and as stated by Your Honor, it contributes a great deal to a very important sector, the maritime sector, of our foreign workers economy. However, I am informed that it is not such a big item and so, hopefully, maybe we can make representations to include it somehow.

REP. MANALO. So, am I to understand, Mr. Sponsor, that the DFA is moving that this be created and it was only rejected or opposed to by the DBM? Is that the position of the DFA?

REP. COJUANGCO. It was deferred— not rejected, only deferred.

REP. MANALO. Deferred. So, the position of the DFA is to have it created.

REP. COJUANGCO. Yes, to have it created as soon as possible and make it a priority for 2019.

REP. MANALO. Thank you, Mr. Speaker. I guess we in the House should know what to do now that we know the position of the DFA.

Thank you.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. COJUANGCO. Thank you, Your Honor.

REP. DEFENSOR. The next to interpellate is the

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Gentleman from the ACTS-OFW. I move that we recognize the Hon. Aniceto “John” D. Bertiz III.

REP. BERTIZ. Thank you.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Bertiz is recognized.

REP. BERTIZ. Thank you, Mr. Speaker. Good evening. Thank you, Mr. Sponsor, and Mr. Secretary Alan Cayetano.

Una po sa lahat, nais kong batiin ang Department of Foreign Affairs dahil sa pagtaas ng kanilang budget utilization rate po. Congratulations, DFA. Maiksi lang po ang aking mga katanungan. Unang-una po, interesado po ako, Mr. Speaker and Mr. Sponsor, tungkol po doon—kung saan malaki ang pondong naidagdag ng Kongreso noong nakaraang taon—sa Assistance to Nationals at Legal Assistance Funds po. Sa Assistance to Nationals Fund, kamusta po ang ating utilization rate, Mr. Speaker, Mr. Sponsor?

REP. COJUANGCO. Mr. Speaker, as of September 15, 2018, the Assistance to Nationals Fund is P366,491,980.56. The status of the Legal Assistance Fund as of September 15, 2018, is P57,664,205.30. So, the Legal Assistance Fund balance showed a utilization rate of 71.17 percent and if I may go back to the Assistance to Nationals Fund, it was 63.35 percent.

REP. BERTIZ. Maraming salamat po, Mr. Sponsor, Mr. Speaker. Sa Legal Assistance Fund naman po, historically, ay lagi pong underutilized po ito dahil ito ay nagagamit lamang sa pagtatanggol ng mga Pilipinong akusado sa ibang bansa. Subalit alam naman po natin na, Mr. Sponsor, Mr. Speaker, na ang legal assistance ay kailangan din sa pagtulong sa kanila para makasuhan ang mga abusadong employer nila at ganoon rin po, para mabawi ang mga unpaid wages and benefits tulad po noong mga ilang libong hindi nakakuha ng kanilang benepisyo sa Saudi Arabia.

Mr. Sponsor, honorable Sponsor, sa ngayon po, ano po ba iyong utilization rate para po sa Legal Assistance Fund, Sir?

REP. COJUANGCO. It is 71.17 percent.

REP. BERTIZ. Thank you po, honorable Sponsor. Nakita ko po na itinaas ninyo ang inyong target para po sa legal assistance. Noong nakaraang buwan po ay nasa Saudi Arabia po tayo at nakita namin na marami pa rin po ang ating mga kababayan na nasa bahay kalinga na nag-aantay po ng katugunan sa kanilang mga kaso. Nagpapasalamat nga po tayo at nagagamit na ang pondo na ito, hindi tulad po noong nakaraang administrasyon na natulog po ito at hindi nabawasan. Mr. Sponsor and

Mr. Secretary, sana naman po ay mabawasan na iyong ating mga displaced workers na nasa Saudi Arabia po, Mr. Speaker.

Isa na lang pong topic para po tapusin ko na rin ito. Matagal na po kasi po ako, Mr. Sponsor and Mr. Speaker, na nakikipaglaban sa monopolyo ng mga medical clinics dito sa ating bansa, at isa po sa ating mga napagtulungan, of course, with the help of the honorable Secretary ng Department of Foreign Affairs at ng DOLE during that time, ay ang maipasara iyong tinatawag po nating GAMCA, Mr. Sponsor. Ito po iyong Gulf Approved Medical Centers Association dito sa ating bansa at noong nakaraang taon po, isa po sa mga napasara nating clinic ay iyong 8 clinic na accredited ng Winston Q8. Ano ba itong Winston Q8 na ito? Ito po iyong medical referral cartel na ang nagmamay-ari po, kung matatandaan ninyo, ay si Hussein Al-Dhafiri, who is the number two ISIS leader sa buong mundo na ang ginamit pong pondo ay mismo ang mga pera ng OFW po at kumikita po sila ng P9.5 million per day. Ito ay nai-present din ng ating AFP in their Marawi report kasi po iyong perang nakuha sa Marawi ay galing po mismo sa kumpanyang ito. Ang akin pong katanungan, honorable Sponsor, ano po ba ang—just recently, idagdag ko lang po, Sir, na mayroon na namang nadagdag po, iyong Panama Maritime Authority na nag-iimpose din po ng presyo ng mga medical examinations without passing through our Department of Foreign Affairs. Nadagdag din po diyan iyong tinatawag na medical examination cartel po ng Malaysia.

Ang ginagatasan po nila dito ay ang ating mga OFW. Ito po ay naparating namin sa DFA ng napakaraming beses na po. Ano po ba ang puwede nating gawin dito para mahinto ang pagsasamantala nitong mga foreign nationals, lalung-lalo na po iyong mga embahada, na basta na lang po magtatayo sila ng medical clinics at sinasabi po nila na ito raw ay requirement, which is labag po ito sa ating Republic Act No. 10022 po?

REP. COJUANGCO. Well, the Department of Foreign Affairs, together with the DOLE and the DOH, I am sure it is in their priority list to try to refine and improve the accreditation process and also to check the performance of the medical clinics in the preparation of the medical exams and requirements for our OFW applicants. However, there is always the odd entity na tinatawag, na nakakalusot. So, if there are applicants who feel that they have been aggrieved or they were not properly serviced, they should also signify their complaints with the three respective agencies, and I am sure there will be actions taken.

Maybe, one suggestion could also be, since we are trying to establish a more complete and holistic term of reference within countries, that we allow or that we

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deploy Filipino OFWs—maybe that can also be given a little bit more attention and focus.

REP. BERTIZ. Thank you po. Napakagandang kasagutan po, honorable Sponsor.

Mayroon pong Joint Department Order na pinirmahan ng Departments of Foreign Affairs, Justice, Health at Labor. Sana po, honorable Sponsor, ito ay bigyan natin ng kamay na bakal at ipin na ipatupad ito dahil po nakakalusot nga po, tulad po ng sinabi ninyo, ang mga foreigners or foreign entities na ito na naghahanap-buhay dito sa ating bansa. Ang problema po natin ngayon ay terorismo kung saan nagagamit po mismo ang pera ng mga OFW para pondohan po iyong ISIS. Alam po ni Secretary Allan iyan, honorable Sponsor, na ang may-ari ng Winston Q8 is Hussein Al-Dhafiri, who is the number 2 ISIS leader na nahuli po sa Taguig mismo, sa home court ng ating Secretary of Foreign Affairs.

REP. COJUANGCO. Your Honor, the Secretary has just verbally signified his commitment to address that specific concern of the honorable Congressman.

REP. BERTIZ. Thank you po, honorable Sponsor.Last na lang po. Mr. Speaker and honorable

Sponsor. Lumalala po ang sitwasyon sa Libya ngayon at may balita po na marami ang mga Pilipino na maiipit dito sa digmaan na ito between sa mga pocket rebel soldiers at ganoon na rin po, sa kanilang civil war. Ano na po ba ang balita doon sa mga Pilipino engineers na na-hostage na hanggang ngayon ay nasa Libya pa, iyong tatlo, at bukod pa po doon ay iyong iba pa pong nasa Syria? Mayroon na po ba tayong progress report tungkol dito?

REP. COJUANGCO. With regard to the Filipino nationals abducted together with the Korean national in Libya—the stations in that part of the world are on Alert Level III, which means that they are authorized to provide resources or expend resources for the immediate repatriation. Outside of that, the Secretary has informed me that there are some ongoing sensitive issues that would be inappropriate to expound on in this public venue.

REP. BERTIZ. Opo.

REP. COJUANGCO. So, if the honorable Congressman would like to pursue the details and the information, maybe he would accede to a briefing by the DFA and they could, maybe, share more information pertinent to the Filipino kidnap victims.

REP. BERTIZ. Yes, Sir. Maraming salamat po, Sir.

Isa pa po, Sir. Alam ko po na under the jurisdiction ito or mandate ng Department of Labor and Employment at susunod na po sila, pero sana po iyong mga nilalagay o iyong mga nire-recommend po ng Department of Labor and Employment under ILAB, which is the International Labor Attaché Bureau, ay dumaan din po sa proseso ng screening ng ating embahada or ng DFA kasi po sila ang tumatanggap po ng kanilang mga credentials. Bakit ko po nasabi ito? With all due respect sa Department of Labor and Employment, mayroon po ito o ang itinalaga po na Labor Attaché sa Libya ay involved sa sex-for-flight scandal, kung matatandaan ninyo. Kung ako ay babae at tatakbo ako sa ating embahada ay, siyempre, matatakot ako kasi nga iyong credentials po ng ating Labor Attaché nasa Libya. Nag-announce din po siya despite the ongoing war and mga abduction sa Libya na bukas ang deployment ng ating mga kababayang Pilipino sa Syria.

So, I think, with all due respect, inuulit ko po, sa Department of Labor and Employment, hindi po yata tumimbre o humingi muna ng abiso ang Labor Attaché na ito para mag-announce na bukas po ang Libya para sa mga nurse at iba pang mga kategorya. Dapat po ay sundin po natin, honorable Sponsor, iyong tinatawag nating OCTA or one-country team approach in terms of or lalung-lalo pa sa mapanganib na mga bansa.

REP. COJUANGCO. Your Honor, the Secretary is aware of that particular issue and he has written to his counterpart in the DOLE. So, maybe, you will get a better answer if you ask the DOLE.

REP. BERTIZ. Opo.

REP. COJUANGCO. Salamat po.

REP. BERTIZ. Mr. Speaker, thank you so much po, at pati na rin sa honorable Sponsor sa inyong mga kasagutan. Iyon lamang po, Mr. Speaker.

Thank you so much and good luck to your next budget.

REP. COJUANGCO. Thank you, Your Honor.

REP. BERTIZ. God bless.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. ROMERO. Mr. Speaker, I move to recognize Rep. Antonio L. Tinio of ACT TEACHERS.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Tinio is recognized to interpellate.

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REP. TINIO. Maraming salamat, Mr. Speaker. Mr. Speaker, ilang katanungan lang po, mainly mga tanong kaugnay sa pagpapatupad ng DFA ng foreign policy na, siyempre, ang pinagmumulan nito ay ang Pangulo mismo ng Pilipinas alinsunod na rin sa itinatakda ng ating Konstitusyon at mga batas. Ang DFA ang pangunahing tagapagpatupad ng patakarang panlabas ng bansa at ang nagtatakda nito, pangunahin, ay ang Presidente ng Pilipinas. Of course, ngayon, nang maluluklok sa poder si Pangulong Duterte, isa sa mga ipinangako niya ay ang independent foreign policy at nang siya ay maupo, isang malaking isyu na sa usapin ng patakarang panlabas ay, siyempre, iyong nagpapatuloy na kontrobersiya sa South China Sea at sa teritoryo natin sa West Philippine Sea.

Ngayon, ang pangamba ng dumaraming bilang ng ating mga kababayan na sa halip na palakasin ang independent stand ng Pilipinas, partikular sa relasyon nito sa Tsina kaugnay sa territorial claims o sa teritoryo natin sa West Philippine Sea, ay masyadong marami na ang pagbibigay sa Tsina sa harap ng maraming mga maituturing na probokasyon mismo ng Tsina. Kabilang na rito iyong pag-build up ng mga artificial islands na ginagawang, practically, mga military bases ng Tsina kahit mismo sa teritoryo natin—iyong pagpasok ng mga kagamitang militar mula sa mga military aircraft, sa mga naval assets and so on, including iyong mga report about missiles, whether anti-ship or anti-aircraft missiles.

Tapos, of course, iyong mga insidenteng nai-report na over the past few months kaugnay ng pag-harass ng Chinese air force sa mga pilotong Pilipino na lumalapit sa mga teritoryo pa rin natin ngunit pinapalayas sila ng mga pilotong Tsino. And, of course, natampok sa balita a few months ago iyong pagtrato sa mga mangingisdang Pilipino ng mga puwersa ng China at iyong insidente sa Panatag na iyong mga huli o catch ng mga mangingisda natin ay practically inagaw sa kanila ng mga puwersa ng mga Chinese, either ng navy or iyong equivalent ng kanilang coast guard. Supposedly, may barter trade daw—ganoon ang kanilang pinapalabas. Sa harap ng mga probokasyong ito ay sinisingil ngayon ang administrasyong Duterte, partikular ang DFA, kung ano ang ginagawa nila. Nasaan ang, sa minimum, mga protesta, iyong diplomatic protests? Parang wala tayong naririnig na ganito.

So, for the record, ginagampanan ba ng DFA ang tungkulin na ipaglaban at panindigan ang ating mga teritoryo at iprotesta ang panghihimasok at pang-aagaw ng Tsina rito, lalo pa kung umaabot na ito sa pag-harass mismo sa mga mamamayang Pilipino. Ginagawa po ba ng DFA ang kanyang tungkulin, Mr. Speaker, Mr. Sponsor?

REP. COJUANGCO. Kung titingnan po natin, ang subject matter po ng South China Sea ay hindi lang po iyan nagsimula sa panahon ng Duterte administration.

In fact, puwede po nating sabihin na noong panahon ng administrasyon ni President Pnoy Aquino ay medyo doon po talagang sumayad nang pasama ang relasyon natin sa kanila. Maybe it is an unfortunate incident but the hostage-taking in the Manila Hotel area, that is the low point.

Iyong mga base militar, iyong pag-occupy ng atolls in the South China Sea, nobody can deny that China has expanded its presence. Kung dati ay maliit lang na kubo, ngayon ay para na ngang base dahil may mga puerto, mga armamento, mga palapagan ng mga eroplano. This is not to make an excuse for China but Vietnam, which is another ASEAN country, occupies more physical features being claimed by the Philippines than China. I think Brunei and Malaysia also have claims. So, although this not to make an excuse for China but if we are going to raise our complaint in the international arena, then why are we only going to complain about China, hindi ba?

The point is that the President and the DFA as guided by the President— our foreign policy should be, we want to befriend all and not create enemies. So, we can say that, so far in the three years or two-and-a-half years of this administration, there is more dialogue, there is more exchange, there is more interaction with the Chinese government compared to the previous administration and so, we are slightly better, or with even better results.

Now, hindi ko po tinatanggihan na ginugulo din po ang mga mangingisda natin sa bandang Masinloc. Narinig ko rin po na kinuha iyong catch nila pero baka barter trade nga. I think kumuha sila ng isda at ang ipinalit yata ay sigarilyo pero mura lang ang sigarilyo sa China.

REP. TINIO. At saka bottled water daw.

REP. COJUANGCO. Opo, bottled water. Also, maybe now na mas nakatutok ang media at iba pang mga interesado sa subject matter ng South China Sea, baka iyan din po ang reason na kahit na bumaba ang mga insidente ng panggugulo ng Tsina sa mga maliliit natin na mga fishermen, baka po iyong mas kaunting nangyayari ay mas napapalaki ang pagsabog sa media. Another statement that I would like to make is, at least now it has been agreed upon by both parties na during inclement weather, our fishermen can seek shelter within the small bay of Bajo de Masinloc whereas before, kahit masama ang panahon, tinataboy sila palabas dito.

REP. TINIO. Well, Mr. Speaker, gusto ko rin lang banggitin sa diskusyong ito na sa katunayan, ang isang malaking problema ay iyong binabanggit nating nangyari sa Bajo de Masinloc, iyon na nga, na inagaw iyong huli ng mga mangingisdang Pilipino at pagkatapos ay pinalitan daw ng sigarilyo o yosi at tubig.

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Actually, iyong pagtawag doon na ito ay barter trade, nanggaling sa Malacañang. So, Malacañang pa ang nagsabi na barter trade daw iyon. Si Presidente pa yata mismo ang nagsabi nito. Sinabi rin ito ni Presidential Spokesperson Harry Roque. Mr. Speaker, iyan nga ang problema natin sa foreign policy, na mukhang iyong mga pinakamataas na opisyal pa ng Pilipinas ang nagbibigay ng excuse at paliwanag sa pang-aabuso at pagmamaltrato sa mga Pilipino mismo sa sarili nating teritoryo, Mr. Speaker.

Alam po ninyo, nanggagaling ako sa posisyon na tama lang na dapat hindi tayo sarado sa pagpapaunlad ng relasyon natin sa Tsina. Mahalaga po iyan dahil ang reyalidad ay narito tayo sa rehiyon ng Southeast Asia at sa ayaw at sa gusto natin, kapitbahay natin ang Tsina at mahaba ang kasaysayan ng pakikipag-ugnayan ng Pilipinas at Tsina. Marami tayong mga kapwa Pilipino na may ugat, including myself, probably—hindi ako sigurado— pero somehow ay may mga ninuno na nagmula sa Tsina. Well, actually, kung babalik ka talaga sa kasaysayan, mayroong ugnayan talaga tayo sa Tsina. Okay.

So, hindi po tayo sarado. Gayunpaman, ang importante po, sa pakikitungo natin sa Tsina, ay hindi kailanman binibitiwan natin ang ating mga territorial claims. Kaya napaka-importante rin na, habang nagbubukas sa pag-uusap sa iba’t ibang larangan at antas, ay malakas ang pagprotesta na may malinaw na paglabag sa teritoryo natin na ginagawa ang Tsina. Kaya nga po napasok iyong usapin ng protest dahil in the past sa Pilipinas, dito mismo sa bansang ito, kung titingnan din natin ang kalakaran ng ibang mga bansa sa larangan ng diplomasya, may ginagawang, halimbawa, pag-file ng mga formal diplomatic protests. Hindi ako diplomat, hindi ako eksperto dito pero alam ko may iba’t ibang mga porma iyan, correct me if I am wrong, mayroon iyong pagpapadala ng note verbale, iyong mga ganoon, to actual diplomatic protests. Pagkatapos, mayroon pang mga summons to the ambassador of the country to explain the particular act in question before the foreign ministry. Iyong mga ganoon.

Kailanman ay mayroon na bang ginawang ganiyan ang ating DFA sa ilalim ng Duterte administration? Iyon po ang gusto nating marinig,

REP. COJUANGCO. Kung ang gobyerno o ang burukrasya ng Republika ng Pilipinas ay malaki, ang burukrasya ng Tsina siguro ay 10 beses ang kalakihan. So, ang atin pong Sekretarya at ang mga namamahala ng Department, mayroon silang mga mekanismo kung saan sila puwedeng magsabi ng reklamo. Kung gusto mong umayos ang relasyon ng isang bansa sa isa’t isa, kapag sinabi ng isang bansang, “Gusto naming maging malapit sa inyo” pero dahil sa policy naman natin, ayaw naman natin na ibunyag o ibuklat iyan sa media kasi

gusto natin patibayin ang pag-uusap nating dalawa—wala nang iba—I think iyon po ang direksiyon ng ating DFA at ng administrasyon, na makipag-usap tayo, open ang channel of communication sa mga counterparts po natin sa China at mag-focus tayo sa results rather than paramihan ng reklamo o palakasan ng boses.

So, there were mechanisms and there have been steps made equivalent to note verbale or protests, but which were done in a more quiet manner so as to also accommodate the request of the other party.

REP. TINIO. A few months ago, the Secretary of the DFA was widely reported to have made a statement that the DFA made 50 to 100 diplomatic protests kaugnay po or in relation to the West Philippine Sea to China. Does the Secretary of the DFA stand by that statement, na nangyari iyon and so, accurate iyon. Tama po?

REP. COJUANGCO. Yes, Your Honor.

REP. TINIO. Yes. Puwede po bang mapaliwanag lang sa Kapulungang ito kung ano ang ibig sabihin noong 50 to 100 protests na iyon? Anong porma po ba iyon, nakasulat po ba iyan, public ba ang mga protest na iyan, o puro lihim? Ganoon po ba ang patakaran ng Duterte Administration, ang magprotesta pero hindi pinaaalam sa media at sa mamamayang Pilipino kaya hindi natin nababalitaan?

REP. COJUANGCO. At various levels, depending also on the gravity and the sensitivity of the issues in question, our side adjusts the intensity of the protest. Let us say, kung minor issue, note verbale iyon pero kung medyo mabigat ang reklamo natin, then maybe that will reach already the ambassadorial level or the counterpart of our Secretary here or maybe, even our President writing to his counterpart.

REP. TINIO. Well, you say “maybe” sa mga tinatanong po natin. So, in other words, hypothetical ang mga binabanggit ninyo? Ang mga tinatanong natin sa nakaraang dalawang taon ay hindi natin kailangan ng idetalye Sa nakaraang dalawang taon, mayroon na bang ganoong klase ng protesta na umabot sa antas ng ambassador o iba pa?

REP. COJUANGCO. No, Your Honor. I will correct my…

REP. TINIO. Hypothetical kasi ang sinasabi ninyo kasi..

REP. COJUANGCO. No, I will correct myself and I will retract the word “maybe.”

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REP. TINIO. Okay, meaning may ginawang ganoong mga protesta.

REP. COJUANGCO. Yes, meaning that may mga ganoon pong protesta.

REP. TINIO. High level protest?

REP. COJUANGCO. High level, medium level, Secretary pataas.

REP. TINIO. Maaari po bang ibunyag sa publiko ito? Hinahamon ko po ang DFA na isapubliko ito, kung hindi man lahat, at least ang ilan sa mga protesta na ito dahil wala po tayong naririnig para rin po ma-assure ang mga mamamayan natin na nababahala na, tila sobra na at nakakalamang na masyado ang Tsina, pagkatapos ay tahimik lang tayo. Kung gayon, bakit hindi puwedeng ilabas iyang sinasabi ninyong ginawa pala na mga protesta. May mga protesta pala, bakit hindi natin ipahayag para naman mapalagay ang mga kababayan natin na may ginagawa ang DFA at ang Duterte administration para igiit pa rin sa Tsina na teritoryo natin ang West Philippine Sea at hindi natin sinusuko ang ating soberanya dito.

REP. COJUANGCO. Your Honor, wala po sa bokabularya ng DFA na sabihin na umaatras tayo sa karapatan natin sa South China Sea. It is always in search of a win-win situation wherein, maybe, we do not have to declare our sovereign rights but eventually, we will work out a relationship with China where we can still enjoy the benefits of what we are claiming. So, is it more important to claim it or is it more important, later on, for our country to find a win-win situation wherein we have to share part of the resources but we will never relinquish our sovereignty claim over those resources? In other words, makatikim ng tamang hati at paninindigan natin na atin iyan at bahala na kung mayroon tayong matikim diyan o hindi. Ano hong mas mahalaga para sa atin sa Republika ng Pilipinas?

REP. TINIO. Alright. Is the Department willing to release or make public all or even just some of the 50 to 100 diplomatic protests that had been made, according to you, by the DFA on the West Philippine Sea issue?

REP. COJUANGCO. The Department is always willing to share that type of information with the honorable Congressman. Just bear in mind that sometimes, such communications or communiques are sensitive in nature, but the Department is always willing to share them with a Representation such as yourself.

REP. TINIO. So, ang patakaran po ay hindi ibabahagi

sa publiko, sa mamamayang Pilipino, pero handa ang Department na ibahagi sa Kongreso, ganoon po?

REP. COJUANGCO. Sa mga bagay po kung saan patuloy po ang pag-uusap ng dalawang gobyerno o dalawang bansa, hind po iyan inilalantad palagi sa media dahil po may kaunting sensitivity iyong mga pinag-uusapan. Usually naman po ay pinapalabas po iyan sa media kung mayroon nang napagkasunduan ang dalawang partido.

REP. TINIO. Okay. Would the DFA be willing to hold a briefing to provide us with more information on these protests?

REP. COJUANGCO. Opo.

REP. TINIO. Sige. Maraming salamat po. Okay, punta na po tayo sa ibang usapin, ito iyong binabanggit ng Duterte administration na joint exploration deal sa pagitan ng Pilipinas at Tsina kaugnay sa mga, in particular, energy resources sa West Philippine Sea. Again, in media reports, sinasabi po o i-quote ko po si Secretary Alan Peter S. Cayetano na may mga developments dito and that magkakaroon po ng deal or at least a draft deal by September. Matatapos na po ang September, ano po ang update dito?

Naintindihan din natin na siyempre, possibly, sensitibo ito pero ano ang maaaring ibahagi ng DFA kaugnay sa, again, napakasensitibong usapin na ito?

REP. COJUANGCO. On the policy po of the country when it comes to discussing that aspect of how to go about the joint exploration and all other acts with China, we are using the Malampaya model. In other words, we will not agree or we will not work for anything less than what the Malampaya contract is. The goal is to have a similar Malampaya contract or better. So, wala muna silang inilalabas kasi, siguro, the other side is also digesting that policy. Hindi ba?

REP. TINIO. Okay. Well, you mentioned state policy at ang pinakapundamental na state policy ay ang itinatakda ng Konstitusyon. Sabi nga sa Konstitusyon, in the Article on National Patrimony, “The State shall protect the nation’s marine wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens.”

Kinikilala ba ng kasalukuyang administrasyon na ito ang pinaka-cornerstone na patakaran na itinatakda ng Konstitusyon, na kapag pinag-uusapan natin ang kayamanan sa karagatan, ang sabi dito, ito ay exclusive to Filipino citizens?

REP. COJUANGCO. Yes, Your Honor. That is one

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of the guiding lights. All agreements must be consistent with what is allowed in the Constitution. That is why a subject matter such as this, will also take time to resolve because there are so many other issues within this main topic that have to be resolved by both sides.

REP. TINIO. Okay. Mr. Speaker, binanggit po ng Sponsor na ang model ay ang Malampaya arrangement. Ang ibig sabihin po ba nito, ang iniisip ng Malacañang at ng DFA—ang intindi ko sa Malampaya model, makikitungo ang gobyerno ng Pilipinas sa isang dayuhang korporasyon at bibigyan ng concession—parang ganoon—ang dayuhang korporasyon and in this case, a Chinese corporation. Iyon ba ang ibig ninyong sabihin sa Malampaya model? Please expound on what is meant by the Malampaya model in this case.

REP. COJUANGCO. Tama po ang binanggit ninyo. On the commercial side, whatever resources are there, whether it be a state-owned company or a private company that will explore it, the sharing of the revenues from the commercial activity will be modeled after the Malampaya contract or even better than that. Now, when it comes to the diplomatic side, siguro that will be even more sensitive or challenging in coming up with a declaration wherein we do not renounce our sovereign claims and at the same time, the Chinese also do not sacrifice or curtail their pronouncements based on their historical claim that the whole body of water is theirs.

REP. TINIO. Okay.

REP. COJUANGCO. So, that is where the sensitivity comes in, I guess.

REP. TINIO. Well, iyon po ang isang basic na kaibahan ng Malampaya model sa kasalukuyang sitwasyon dahil sa kaso ng Malampaya, iyong Royal Dutch Shell, Anglo-Dutch or whatever, as far as I know, ay wala namang sovereign claims o claims of sovereignty sa teritoryo ng Pilipinas. Buong-buong kinikilala nila ang soberanya ng Pilipinas, doon sa Malampaya, sa Palawan, sa ating karagatan, hindi ba? Iyon lang po ang pangamba natin sa usaping ito.

REP. COJUANGCO. The point lang po, iyong Malampaya is closer to us, farther away from the disputed area.

REP. TINIO. Yes.

REP. COJUANGCO. Also bear in mind that whatever negotiation or outcome possibly that we can come up with, will include the areas wherein China also

has counterclaims and so, there is a difference between the location of where Malampaya is and the future potential areas that are explorable and extractable.

I was just informed by the Secretary that it just so happens that the areas that contain the most potentials are in these disputed areas.

REP. TINIO. All right. Again—matatapos na ang aking interpellation—so, ano po ang status, kung baga, what is the latest on this matter of the China-Philippines oil exploration deal? Nasa anong stage na po tayo?

REP. COJUANGCO. As of now po, the target of our government is to have a written understanding between September and October and hopefully, that will most probably be on the methodologies, an understanding on how to survey or investigate the resources there. Since that still has to transpire before any actual resources can be determined, the secondary part on how to share whatever resources are there, should come right before the period of actually working on extracting those resources. So, to clarify, the target is, between September and October of this year, to have a basic framework on how to explore first the disputed areas.

REP. TINIO. Of course, inaasahan po natin na mabibigyan po ng update ang Kongreso sa mga developments na ito. Tama po ba?

REP. COJUANGCO. Sandali lang po. Can you repeat the question.

REP. TINIO. Opo. Umaasa po kami na handa at gagawin ng DFA na bigyan ng regular updates ang Kongreso sa itinatakbo nito, sa mga developments sa usaping ito. Tama po ba iyon?

REP. COJUANGCO. Opo. Also bear in mind po na ang Malampaya is projected to run out by 2028.

REP. TINIO. Yes.

REP. COJUANGCO. Iyong proseso ho, kahit makahanap po tayo ng ibang resources para gawin po iyong mga hakbang na kailangan ihanda para ma-extract po kung ano man ang nandiyan ay halos masikip na lang po ang natitirang panahon, kaya the negotiations on both sides are trying to be done as smoothly as possible.

REP. TINIO. Mr. Speaker, of course, isang napakahalagang usapin ito. Isa sa mga dahilan kung bakit napakahalaga na maging malakas ang pagtindig ng gobyerno ng Pilipinas sa ating mga karapatan sa teritoryo natin sa West Philippine Sea ay ang usapin sa mga likas na yaman na nariyan na itinatakda ng ating Konstitusyon na kailangang pakinabangan ng

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mga Pilipino. Kaya po ang Kongresong ito ay dapat na patuloy na magbantay sa mga hakbang ng Duterte administration kaugnay sa pakikitungo nito sa Tsina, upang matiyak na magiging para sa kapakinabangan ng mamamayang Pilipino ang anumang mangyayari dito, bearing in mind the past experience. Binabanggit ninyo iyong Malampaya pero sa totoo lang, sino ba talaga ang nakinabang sa Malampaya? Yes, may pakinabang ang mga Pilipino pero para sa marami sa atin, higit na malaki ang naging pakinabang ng dayuhang korporasyon na nariyan. Iyon po ang mga nais nating matiyak dito.

With that, Mr. Speaker, I end my interpellation. Thank you.

REP. COJUANGCO. Thank you, Your Honor.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. ROMERO. Mr. Speaker, I move to recognize Rep. Ariel “Ka Ayik” B. Casilao of ANAKPAWIS Party-List.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Casilao is recognized.

REP. CASILAO. Thank you, Mr. Speaker, distinguished Sponsor. My colleague in the MAKABAYAN already propounded some questions that I plan to ask. I do not intend to repeat. Nevertheless, in relation to his last question, again, in August 22, President Duterte made a public statement with regard to the ruling of the tribunal in favor of the Philippines, pero ang sabi ni Pangulong Duterte: “Do not monopolize resources in West Philippines or there will be war.” This is a very strong statement coming from a President.

However, rumors or should I say, in the recent reply of the distinguished Sponsor, he said that there is an agreement or a negotiation with regard to the joint exploration or utilization of whatever resources found in the West Philippine Sea. Now, for the record, distinguished Sponsor, are there really ongoing negotiations between two competent representatives of the government of China and the Philippine government with regard to the utilization?

REP. COJUANGCO. I think I need to clarify that point— The statement was made to convey to China that we are adamant in that no one country will dominate or exclusively use the resources thereat. So, I would not want to say that it is a warning—I mean, mas maliit tayo, hindi ba? It is more of a, maybe, clarificatory statement, and you could say that it is also a little bit stronger than rather than appealing or words to that effect. So, yes,

there are negotiations and with that statement of the President, I think it is a reiteration of the direction we would likely the policy to go.

REP. CASILAO. Well, I am just in the quandary, Mr. Speaker, distinguished Sponsor, because in previous months also, we heard the President saying, “Oh, wala tayong kapasidad makipag-giyera sa China, ano ba naman iyong mga tangke nila, mga barko nilang pang-giyera, lahat ng kagamitan, and they have ready one million armed forces.” It sent multiple signals but with your confirmation that, in fact, there is really an ongoing negotiation, and my information—kung bubwit nga ba ako— ang sabi nga ay 60-40, may mga lumalabas na pong ganyan. Umabot na ba—will the distinguished Sponsor confirm that there is negotiation ongoing at umabot na rin ba sa ganyang usapan iyong hatian na 60-40? Gusto ko pong malaman kung kanino po pabor—60 ba sa Pilipino o 60 sa Intsik?

REP. COJUANGCO. Iyong model po ay iyon na po, iyong ginagamit po natin na ilang dekada doon sa Malampaya which is 60 percent for the Philippines and 40 percent for the foreign exploration company. So, that is the minimum arrangement that would be acceptable to our government. We try to either get more but that is the lowest we will go.

REP. CASILAO. So, please educate me. While the level of negotiation has reached that point already in terms of sharing pero magkakaroon na po ba ng exploration ngayon to determine what other resources are there?

REP. COJUANGCO. Wala pa po. What is ongoing is finalizing how the exploration will be conducted …

REP. CASILAO. To be conducted.

REP. COJUANGCO. … between the two countries. In the initial talks or everytime it is mentioned kung paano iyong sharing, diyan po ay consistent tayo. We are saying that the lowest we will go is the same sharing in Malampaya.

At this juncture, Deputy Speaker Arbison relinquished the Chair to Rep. Arthur R. Defensor Jr. presiding.

REP. CASILAO. Okay. With that, I will go to my next question. Although I think the Secretary heard my interpellation in the Department of Finance, I am just really worried on the number of Chinese companies and banks involved in our BBB, Build-Build-Build projects and in fact, as I have mentioned, I requested the previous Sponsor to provide me with a copy of the different ODAs.

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Now, in the recent and, I think, one of the important trips to China—and I relayed this to the previous Sponsor— was the meeting held last August 22 to 24. May I know if a contingent of the Department of Foreign Affairs was also part of the contingent of the economic managers discussing economic policies last August 22 to 24? May the DFA confirm if they were part of the contingent?

REP. COJUANGCO. The Secretary confirms that he was present in the Beijing meeting.

REP. CASILAO. Yes. Again, as I have presented the fears of this Representation that, to balance the impact and the gains of these loans or these ODAs, sa tingin ko po mas nagiging mabigat iyong timbang ng disadvantages sa atin. Ngayon, if I may say, Mr. Speaker, although China is ruled by a Communist Party and in fact, the counterparts who met with the Philippine contingent were secretaries also of the Politburo, the political bureau and the economic bureau of the leadership of China, however, in terms of foreign assistance, iyong ginagamit po nilang kategorya sa ilalim ng FAGIA, the Foreign Aid and Government-Sponsored Investment Activities, may I know if the terms can be extended or is it a fixed term that the obligation of the Philippine government will really be fixed on a 20-year term of payment.

At this juncture, the Presiding Officer relinquished the Chair to Deputy Speaker Munir M. Arbison.)

REP. COJUANGCO. Your Honor, I think the answer to your question was articulated by the Honorable Salceda in the previous Committee presentation wherein the most favorable form of financial assistance to us is the ODA coming from Japan. It has the most generous terms. Whereas the Chinese counterpart has higher rates but is still way lower than commercial rates. If I will recall, it is 2 percent with a 7-year grace period and a payment period of 20 years. So, it is better than World Bank.

REP. CASILAO. Well, thank you for that information. Lastly, distinguished Sponsor, we have witnessed several trips of the President to different countries and in the recent trip to Israel, he clinched an arms deal which also sent different signals on the arms deal supposedly between the US and Russia. So, does the DFA confirm that there were several possible agreements on the purchase of weaponries and armaments with these countries mentioned?

REP. COJUANGCO. From the different countries mentioned?

REP. CASILAO. Yes, Russia, Israel and US.

REP. COJUANGCO. Yes, Your Honor. Our new policy involves us making friends with other countries around the world and so, for those who offer to provide or sell us military hardware that are compatible with those in our armed forces, then, I think we are open to negotiations or the reception of any assistance given to us, and I understand that we are accepting one or two attack helicopters from Jordan which was agreed upon during that trip to Israel.

REP. CASILAO. But these are not obsolete weaponries in their respective countries. Am I correct?

REP. COJUANGCO. Well, sabihin na po natin na, for sure, ang Jordan po ay may mas bagong helicopter pero iyong Bell Cobra, ginagamit pa po iyan ng mga ibang bansa. In fact, never pa tayong nagkaroon niyan and such a type of military hardware would have been a big help if it were here already during the Marawi siege.

REP. CASILAO. I have no more questions, Mr. Speaker, distinguished Sponsor. Thank you for answering my questions.

REP. COJUANGCO. Thank you, Your Honor.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. DEFENSOR. Mr. Speaker, the next to interpellate is the Hon. Arlene D. Brosas. I move that we recognize the Lady.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Brosas is recognized.

REP. BROSAS. Thank you, Mr. Speaker. Mr. Speaker, ilan lang mga katanungan kaugnay sa DFA. Kaunti lang. Actually magte-take off po ako doon sa tanong kanina tungkol sa Tsina.

When Chinese coastguards bullied and harassed our fishermen and even our own coast guard, paano ang DFA at ang administrasyon mismo nag-react dito? Tinanong natin kung nag-file kayo ng kaso at ang sabi ninyo ay nag-file pero hindi naman natin maipaliwanag kung anu-ano iyong mga na-file na kaso. Simple lang po ang tanong ko—ano iyong naging epekto nito sa moral ng mga Coast Guard natin?

REP. COJUANGCO. Doon po sa sensitive incidents na involved ang Chinese coast guard, mayroong bagong mekanismo na ang Philippine Coast Guard at ang Chinese coast guard kung saan magmi-meet sila kung paano i-areglo o i-ayos ang concerns noong kabila. For

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example, mayroon tayong fishermen na na-harrass ng coast guard nila, puwede po tayong mag-request ng dialogue any time and also vice versa. Kung mayroon din tayong ginawa na medyo feeling nila na-agrabyado sila, puwede rin po silang magtawag ng meeting para magka-dialogue iyong dalawang coast guard.

REP. BROSAS. Mr. Speaker, nag-file po ba tayo ng kaso in behalf of our fishermen and our Coast Guard?

REP. COJUANGCO. Wala po.

REP. BROSAS. Paano po ba iyong panuntunan natin dito sa treatment sa mga ganitong sigalot with China? Paano natin tinatantiya kung effective iyong pamamaraan o strategy na ginagawa natin dito?

REP. COJUANGCO. For example po, sana walang may magmamasama nito—halimbawa, mayroon pong isang pulis na medyo nang-abuso ng kaunti sa isang dayuhan na turista, mayroon naman tayong mekanismo kung saan puwedeng makalapit iyong na-agrabyado. Ganoon din po sa China. Sa laki din ng burukrasya nila, mayroon din naman siguro silang mga personnel na hindi rin nakakasunod palagi sa guidelines or policies kaya may kaunting abuso din. Both governments have mechanisms wherein its citizenry or visitors within the country can lodge complaints. In the police case, it is the NAPOLCOM. In China, there is also a counterpart.

It is hard to answer your question directly na we should be filing cases against China. I do not know in what forum we can file cases. For sure, it is a different venue from the Court of Arbitration because you are now asking if—let us say, for someone na nakunan ng isda, kung hindi siya pabor sa barter trade, feeling niya na nalugi siya and so, I do not know what court will hear that type of discrepancy.

REP. BROSAS. G. Isponsor, Mr. Speaker, hindi ba dapat kayo sa Department of Foreign Affairs ang nakakaalam nito dahil kayo po iyong maalam doon sa mga polisiya sa labas ng ating bansa? Any form ng pagtatanggol sa mga kababayan natin, kung sa tingin nila ay na-agrabyado sila, hindi po ba iyon ay mandato at trabaho ng Departamento ninyo?

REP. COJUANGCO. Opo. Tama kayo doon. Kaya nga kung wala pong venue, kung saan po tayo puwedeng magpaakyat ng pormal na reklamo, iyon ang dinadaan sa diplomansiya. Ang magandang ehemplo po diyan ay iyong naging kasunduan between Philippines and Kuwait wherein sa ngayon, mayroon na tayong terms of reference kung paano dapat tratuhin ang Pilipino OFWs na naghahanap-buhay o nanunungkulan sa Kuwait. Dati po ay wala iyan. Through diplomacy, nagbunga po iyan, and I think that will prevent or

hopefully deter more negative incidents that befall our countrymen who are deployed there.

REP. BROSAS. G. Isponsor, Mr. Speaker, tinatanong ko po iyong estratehiya na ginagamit ng administrasyong Duterte kaugnay dito sa pagtrato sa mga kaso laban sa Tsina. On equal footing din ba natin ito tinitingnan, na kapareho natin sila? Anong estratehiya ang ginagawa ng DFA dito?

REP. COJUANGCO. Sa ngayon po, it is primarily, almost pure diplomacy because doon sa UNCLOS, kahit na ang ruling ng UNCLOS pabor sa bansa natin, wala namang mekanismo ang UNCLOS magpapilit o mag-enforce ng kanilang ruling. Kung doon naman tayo sa United Nations Security Council, ang Tsina pareho ang bigat nito sa US at Russia. Kahit isang bansa lang ang mag-veto sa kanila, hindi na po mapapasa iyong resolution. The strategy of the DFA then is continue to develop good, positive communication and diplomacy with the country that we are trying to work out our differences with.

REP. BROSAS. Mr. Speaker, kung ganoon po iyong tingin ng DFA, baka talagang hindi na nga tayo makapag-file ng mga kaso na kailangan nating i-file, at hindi natin mabigyan ng hustisya hindi lang iyong Coast Guard pero pati na mismo ang mga mangingisda na nagre-reklamo sa atin.

Kung sinasabi natin na puro diplomansiya lang ang gagamitin nating estratehiya, gaano po ito naiba sa iba pang mga administrasyon before na nagpatupad din ng kani-kaniyang pamamaraan para mai-pagtanggol iyong mga kababayan natin at ma-claim natin sa Tsina ang West Philippine Sea?

REP. COJUANGCO. For example po, ang away sa Marawi, noong tumagal ito, ang Tsina ay tumulong sa gobyerno sa pamamaraan ng pagsuporta sa Republika sa pagbigay ng bala at armas. Iyong kalamidad sa Leyte, nagpadala din po sila ng tulong—mga materyales at mga technical na tao para bigyan ng assistance ang survivors sa Leyte.

Ito siguro puwede nating sabihin na bunga na ito ng genuine intentions ng dalawa nating bansa na, kung dati hindi tayo nag-uusap, paano tayo mag-uugnay para pareho tayo ay magbe-benipisyo sa anumang programa o hakbang pang-ekonomiya or otherwise, na mapaparating natin para sa benefit ng dalawang bansa.

REP. BROSAS. Mr. Speaker, sa ganoong mga sagot ninyo, sa tingin po ng Kinatawang ito na hindi talaga nakasasapat iyong mga pamamaraan na ginagawa sa kasalukuyan o strategy na sinasabi ng kasalukuyang administrasyon kaugnay sa isyu ng West Philippine Sea

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at sa islands na kini-claim natin, ano po. Kung hindi natin mabibigyan ng hustisya iyong mga fisherman natin, bababa ang moral ng ating mga Coast Guard at ilang mga kasundaluhan na nagbabantay po doon. May signal na sini-send ito sa ating mga kababayan kung paano talaga protektahan ang soberanya ng ating bansa. Ito ang nakakalungkot. Iyong tanong ko po na effective ba ang ginagawa ng ahensiya, ang sagot naman ay sa tingin ninyo, iyan ang effective na pamamaraan. Para po sa Kinatawang ito, sa tingin namin ay hindi talaga ito nakasasapat sa kasalukuyan, lalo na kung ang mga nahihirapan ay ang sektor ng pangisdaan natin.

My next question. Iyong pagka-derail ng plane sa NAIA noong August 16, ito ay Chinese plane carrying 157 passengers which veered off the runway while attempting to land the Xiamen Airlines aircraft. It landed on its second attempt and skidded onto the grass, ripping off its left engine. Mula po noong August 16 to 18, 135 flights were cancelled and 17 flights diverted. The cancellation extended until September 19 and 20. Ilang flights lahat ang cancelled, delayed, diverted, at ilang mga Pilipino ang apektado ng insidenteng ito? Iyong numero po ng OFW going home at going back to work ay naapektuhan ba?

REP. COJUANGCO. Sigurado po ay naapektuhan sila. Una sa lahat, siguro puwede ako mag-recommend, Mr. Speaker, Your Honor, na huwag na munang sumakay sa Xiamen Airlines dahil baka iyong piloto nila ay kulang sa ensayo o kulang po sa training dahil ang pagsadsad ng eroplano nila ay hindi naman nangyari sa pinakamasamang kondisyon ng weather. Kung baga sa Philippine Airlines, ang piloto ng Philippine Airlines, imamani-mani lang iyon. Siguro iyong Xiamen ay hindi pa hinog iyong piloto nila. Mas safe pa po ang China Southern. Iyan ang sinakyan ko at nandito pa po ako.

REP. BROSAS. Ang tanong ko po ay ilan iyong OFW going home at going back to work na naapektuhan?

REP. COJUANGCO. Sandali lang po, Mr. Speaker, Your Honor.

REP. BROSAS. Isunod ko na rin iyong tanong kung nakapag-provide ba ng assistance diyan?

REP. COJUANGCO. Heto na po. The assistance given by Xiamen Airways was P5,125,000, kung saan na-release ito to 1,025 recipients. That is P5,000 per affected OFW.

REP. BROSAS. Nag-instruct po ba ang DFA sa Philippine embassies abroad to issue certifications to OFWs to explain the delay? Lahat ba ng apektadong OFWs ay nabigyan ng certification? Paano po iyong naging proseso nito?

REP. COJUANGCO. Lahat po ng humingi ay nabigyan. Ang iba ay sinundo ng embassy kaya nalaman na kailangan nila iyong ganyang certification. It is also up to the person affected to secure the certification.

REP. BROSAS. Mr. Speaker, paano tayo nakasiguro na walang nawalan ng trabaho sa kapalpakan ng Xiamen Airlines? Mayroon po bang nagreklamo, Mr. Speaker?

REP. COJUANGCO. So far, walang nalalaman ang ahensiya puwera na lang po kung iyong mga naapektuhang OFW na nawalan ng trabaho ay magsasabi para ma-follow-up po nila ang sitwasyon ng OFW natin.

REP. BROSAS. Mr. Speaker, for the record, walang nagreklamo na OFW na nawalan ng trabaho dito sa pangyayaring ito?

REP. COJUANGCO. So far, wala pa pong lumalapit sa mga embahada natin, sa mga consulate natin o sa DFA dito. Wala pa po, Mr. Speaker.

REP. BROSAS. Okay. Next set up of questions. Last na mga tanong ko.

Last year, tinanong ng Gabriela Women’s Party-List ang COA report ng unclaimed P114 million—magpa-follow-up po kami— and this is the P114 million benefits of our OFWs na, according to the COA, an accumulation of benefits for 10 years. The DFA said that the agency was not able to give the said benefits because they could not locate the family or the recipients anymore.

After Congress inquired on the said amount, may ginawang steps na ba ang DFA para i-locate iyong recipients ng unclaimed benefits? Magkano na lang ang unclaimed na ito? Ano ang ginawang steps ng DFA para siguraduhin na makakaabot ito sa mga OFW at pamilya nito.

REP. COJUANGCO. The unclaimed amount mentioned earlier was approximately P112 million.

REP. BROSAS. So, hindi po P 114 million, it is P112 million?

REP. COJUANGCO. Ang good news po, iyong COA report was last year pa. Ang record ngayon ng DFA is P160 million.

REP. BROSAS. So, P160 million?

REP. COJUANGCO. It is P160,198,296.86 or 9.19 percent unpaid and the Department attributes that to either being unclaimed or there are multiple beneficiaries

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claiming. The Department cannot release the funds if there are multiple claimants because baka gawan po sila ng kaso ng totoong beneficiaries. Kailangan suriin kung sino po ba ang totoong beneficiary kapag multiple ang claimants.

REP. BROSAS. So, hindi pa po ito na -disburse at nandiyan pa iyong pera?

REP. COJUANGCO. Mayroon pa pong 9.19 percent, Mr. Speaker

REP. BROSAS. That is 9.19 percent?

R E P. C O J U A N G C O . T h a t r e p r e s e n t s P160,198,296.86.

REP. BROSAS. Last year po ay tinanong ko rin iyong tungkol sa blood money at kung maaalala ko, iyong na-issue kay Joselito Zapanta was P55 million at iyong kay Jakatia Pawa ay P23 million. Ito po ay para sa mga pamilya ng mga nasawi na OFW, with the approval of the donors. May ginawa na bang hakbang ang OFW to get the approval of the donors at ano ang balak ng DFA dito? Ilang taon na ang nakalipas kaya gusto po nating malaman kung ano na ang ginawa ng ahensiya sa pangangailangan ng mga OFWs na ito.

REP. COJUANGCO. Ito po. Si OFW Joselito Zapanta, Riyadh, the amount of P21,163,445.73. The family of Mr. Zapanta refused to issue an Affidavit of Forgiveness in exchange for the blood money and thus, the funds were not utilized.

REP. BROSAS. Hindi po naibigay ito sa kanila, Mr. Speaker?

REP. COJUANGCO. Hindi po naibigay dahil ayaw po nilang tanggapin kasi humihingi po—ang proseso doon sa Riyadh is kailangang may Affidavit of Forgiveness at ang kapalit noon ay iyong blood money. Ayaw po nilang tanggapin. Ayaw din po nilang magbigay ng affidavit.

REP. BROSAS. What about Jakatia Pawa?

REP. COJUANGCO. Si OFW Jakatia Pawa, sa Kuwait po, P23,727,868.85. The family was paid goodwill money from the portion of the amount transferred by the PCSO. So, paid po.

REP. BROSAS. Magkano po iyong naibigay kay Jakatia Pawa?

REP. COJUANGCO. It is P23,727,868.85 po.

REP. BROSAS. So, naibigay ito?

REP. COJUANGCO. Opo.

REP. BROSAS. So, ito po ay natapos na?

SUSPENSION OF SESSION

REP. COJUANGCO. Sandali lang po. May I move for a one-minute suspension of the session.

THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 9:42 p.m.

RESUMPTION OF SESSION

At 9:42 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

The Sponsor is recognized.

REP. COJUANGCO. Your Honor, I would like to correct my earlier statement to your query. The proceeds that were raised for Jakatia Pawa reached that amount and it is a combination of funds from the PCSO and private donations. However, the money was raised but not in time—it was raised but was not given in time before her execution. Noong nakumpleto iyong pondo ay na-execute na po si Ms. Pawa.

REP. BROSAS. So, distinguished Sponsor, Mr. Speaker, nasaan na iyong pondo ngayon?

REP. COJUANGCO. It is in the account po for the blood money to be used for other OFWs for this year.

REP. BROSAS. Mr. Sponsor, hindi ba tinatanong iyong mga donors kaugnay diyan kung anong gagawin sa ibinigay na pondo? They were not asked kung anong mangyayari sa pondo na kanilang na-raise?

REP. COJUANGCO. Iyong private donors po, tatanungin natin pero iyong public funds po, we will follow the usual rules of the COA.

REP. BROSAS. Mr. Sponsor, Mr. Speaker, how much is the private, mayroon po ba kayo, and also the public kung mayroon kayong bilang nito?

REP. COJUANGCO. The breakdown is not available this evening but if the Department can generate a breakdown, I am sure they can furnish you the pertinent information.

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REP. BROSAS. Thank you. G. Isponsor, for my next question po.

Isang malaking tulong sa mga OFW abroad na puwede silang mag-renew ng passport kung saan sila nakabase, ngunit nakatanggap po kami ng mga reports mula sa OFW na pahirapan pa din ang pagkuha ng appointment sa mga passport sites abroad kagaya sa Hong Kong na inaabot ng buwan bago makakuha ng schedule. Alam naman natin po na Sunday lang po iyong rest day nila at ang araw na puwedeng mag-process ang libu-libong OFW doon, sobrang haba at ang tagal daw ng pila. Ano ang balak gawin ng DFA sa issue na ito?

REP. COJUANGCO. There is po a unique situation in Hong Kong wherein most of our OFWs there are domestic helpers, which means that their free time is usually on a Sunday. So, that is when the passport processing is open, wherein they do not need to make appointments, they just have to go there. Siguro, from time to time, there are slight glitches, given the fact that there are about 200,000 OFWs there. Siguro, mayroong days na punong-puno, may days na not so puno. As regards other countries…

REP. BROSAS. So, Mr. Sponsor, Mr. Speaker, ano ang paraan o mechanism na ginagawa ng DFA para solusyonan ito?

REP. COJUANGCO. No, there are also—I would like to continue.

REP. BROSAS. Okay.

REP. COJUANGCO. Like what they are doing locally, there are teams that go out of their stations to service communities where there are also Filipino OFWs and sometimes, they bring the machines with them to capture the biometrics and other data of the applicants.

REP. BROSAS. Anyway, Your Honor, can you look into this po nang mabuti kung paano talaga mapapabilis iyong pamamaraan dahil iyan po iyong kahilingan ng mga OFWs natin sa Hong Kong. Sila po ay nag-manifest na kailangan nila ng tulong dahil tuwing Sunday nga lang sila nakakapila, pagkatapos ay sobrang dami ang pino-process at sobrang tagal iyong processing. Iyan po iyong inirereklamo talaga ng mga OFWs natin, particularly sa Hong Kong.

REP. COJUANGCO. We will ask the Department to make a list of what will be their immediate, for this year and also next year, improvements pertinent to that, and we will furnish you a copy of their plan of action.

REP. BROSAS. Thank you, Mr. Speaker. Kaugnay po sa mga distressed OFWs natin sa Gitnang Silangan,

mayroon po ba tayong mga nakabinbin na kaso ngayon at ano na po iyong mga aksiyong ginawa natin kaugnay dito? Maaari po ba kaming makakuha ng kopya, as in now?

REP. COJUANGCO. The Department taps the Assistance to Nationals Fund (ATN) and the Legal Assistance Fund (LAF). These are the two primary sources for the assistance.

REP. BROSAS. Mr. Sponsor, ilan po iyong distressed OFWs natin sa Gitnang Silangan?

REP. COJUANGCO. Your Honor, do you want the exact number?

REP. BROSAS. Mr. Sponsor, G. Ispiker, kaya po natin tinatanong ang question na ito dahil may mga natatanggap din po tayong reklamo katulad ng anong mga aksyon at pagtulong na ginagawa ng DFA sa mga nagkaroon ng kaso, iyong mga pag-usig sa mga nang-abuso sa mga kababayan natin doon. Ano pang maaasahan nila? Bakit paulit-ulit na lang iyong siklo ng pang-aabuso, pagkatapos, iyong mga embahada ay walang nagagawa para sa mga kababayan natin? Kaya po hinihiling natin ito—ilan ba itong mga distressed OFWs, ano na po ang mga ginawa natin dito, iyong mga aksiyon, mga resolusyon?

REP. COJUANGCO. Your Honor, there is a list of 10 posts with the most number of cases of detained OFWs: Riyadh, 476; Jeddah, 286; Hong Kong SAR, 190; Los Angeles, California, 148; Doha,133; Kuwait, 114; Kuala Lumpur, 106; Guanzhou, 100; Panama, 96; and Brazil, 65. There is also a list here of countries with Filipinos detained for drug-related cases. Obviously, it is harder to help or give immediate assistance to our OFWs involved in some crimes or anomalies, hindi ba? Siyempre, ang una mong puwedeng tulungan, dahil kung minsan, they just ran out of funds to go home or naligaw sila, hindi ba, or they were fired before their contract was terminated—ito iyong mas madaling tulungan kaysa iyong OFW na may kaso na naimbestigahan na at naghihintay na lang na mailitis siya sa korte. Mas mahirap tulungan sila pero tinutulungan pa rin natin through the Legal Assistance Fund. Naghahanap po tayo ng lawyers and in fact, one of the requests for Tier 2 was to be able to increase the rate so that we could hire better lawyers.

REP. BROSAS. G. Isponsor, Mr. Speaker, selective tayo sa pagpili ng tutulungan kaugnay sa mga kaso, kaya iyong mga madadaling kaso ay inuuna natin? Bakit po ganoon?

REP. COJUANGCO. Can you, Your Honor, repeat the question?

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REP. BROSAS. Selective po ba tayo, G. Isponsor, sa ating mga kaso?

REP. COJUANGCO. Hindi po.

REP. BROSAS. Maaari ninyo po ba akong bigyan ng kopya ng listahan ng mga distressed OFWs at iyong mga aksiyon na ginawa ng DFA, partikular sa kanila?

REP. COJUANGCO. Okay po. Yes po, pero hindi po selective ang Department of Foreign Affairs. The particular circumstance of the OFW very much often dictates how quick or comprehensive the assistance of the DFA can be extended to that individual. Iyon na nga po, kung may kaso na po at kung minsan guilty na iyong kababayan natin, then, kailangan naman siya sumailalim doon sa batas doon sa hodt country na iyon, base naman doon sa ginawa niyang kasalanan. With that said, the DFA now continues to work for pardon or clemency at kung minsan po, napapagbigyan po ang request ng DFA. Pinapauwi na lang iyong OFW, imbes na doon po niya sagutin iyong sentensiya niya.

REP. BROSAS. So, G. Isponsor, dapat tugunan iyong lahat na mga kaso, depende lang …

REP. COJUANGCO. Mahirap po to expect na lahat parehas ang pagtugon dahil doon din po sa ibang bansa, kung minsan, iba rin po ang piskal na humarap dito sa isang kaso, at baka siya, lahat ng dinadaanan niyang kaso ay gusto niya bitay. Doon naman sa isang piskal, baka mas lenient, mas maunawain sa mga tao, especially to a foreign national. So, mahirap po sabihin na sa ibang bansa na lahat tratuhin the same.

Iyon ang mandato ng ating DFA. Ang sinasabi ko lang, iyong resulta, hindi natin puwedeng sabihin na pareho lahat ang resulta pero effort-wise, iyon po ang sinisipag ng DFA natin.

REP. BROSAS. Yes, G. Isponsor, Mr. Speaker. Tayo iyong nagpo-provide ng assistance, so, ginagawa naman natin ang lahat ng paraan para matulungan ang mga kababayan natin. Halimbawa po, sa ibang mga kaso, iyong mga issue ng hindi naman nila kasalanan pero sila ay nakulong, at iyong mayroon pa ngang mga na-convict pero gusto nating ipabukas ulit iyong mga cases nila dahil, apparently, sila ay inosente. Hindi ba dapat tulungan din natin sila?

REP. COJUANGCO. Ginagawa po ang lahat at tuloy-tuloy pa rin po ang paghanap ng iba-iba pang paraan kung paano pa mapalakas at mapadagdag ang pagtulong sa ating mga OFW.

REP. BROSAS. Yes, Mr. Sponsor, katulad na lang po—yes, Mr. Speaker, ng kaso ni Mary Jane Veloso na

na-convict sa Indonesia. Alam po natin na ang kaso niya at pinapatunayan po ng magulang niya at lahat-lahat na siya ay walang kasalanan sa nangyari pero dahil drug case iyon, napakahirap po noong pinagdadaanan ng pamilya niya, plus ayaw po natin siyang mag-testify ngayon dito sa ating bansa, hindi siya pinapayagan na mag-testify. Iyong mga ganyan pong mga kaso ang kailangan pong asikasuhin ng DFA at kailangang asistihan nila.

REP. COJUANGCO. Ganoon nga po ang sinisikapan ko, na ilinaw po sa inyo na ang case po ni Mary Jane Veloso, biktima po siya ng industriya ng droga. Ang naging kasalanan ni Mary Jane ay nagamit siya, walang siyang malay pero nagamit pa rin siya bilang nagta-transport or courier ng droga. Doon po sa Indonesia, istrikto po sila na basta may possession ka ng drugs ay mabigat po ang sentensiya. So, victim po siya, hindi dahil sa kakulangan ng gobyerno natin o ng DFA natin, kundi victim siya ng sirkumstansiya dahil hindi naman niya po sinadya na dalhin iyon kung alam niya kung ano iyong dinadala niya, hindi ba? Pero, siyempre, kailangan respetuhin din iyong statutes ng Indonesia.

REP. BROSAS. Yes, G. Isponsor, Mr. Speaker, hindi po ba dapat mayroong gawing aksiyon ang ahensiya kaugnay sa kaso na ito? Kung alam po natin na biktima siya, dapat mayroon tayong mga ginawang paraan para siya as masalba.

REP. COJUANGCO. Mayroon nga pong ginagawang paraan pero ang paraan ay hindi garantiya na makukuha natin iyong resulta na gusto natin, hindi ba? Ang paraan is, hanggat buhay ang Pilipino sa abroad ay ginagawan natin ng hakbang at kung ano iyong kayang itulong, mayroon iyan pero hindi tayo naman puwede mag-expect. Sa totoo lang, I remember one time, mayroon na-represent si VP Binay na ie-execute na pero napabaligtad niya. Hindi naman lahat ng kaso ay puwede tayong mag-expect na ganoon ang magiging resulta. Case-to-case talaga iyan.

REP. BROSAS. G. Isponsor, Mr. Speaker, maaari po bang magbigay na lang kayo ng report ng case ni Mary Jane Veloso?

REP. COJUANGCO. Yes, Your Honor, Mr. Speaker.

REP. BROSAS. Para malaman natin kung na-exhaust ba talaga ng estado na ito iyong pangangailangan para maisalba iyong inosenteng tao na nasa ibang bansa. Iyon po iyong gusto nating sabihin.

REP. COJUANGCO. Yes, Mr. Speaker.

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REP. BROSAS. Last po na tanong kaugnay sa comfort women. Ito po iyong pagtanggal sa comfort woman statue sa Roxas Boulevard. Alam na alam ninyo po iyan.

REP. COJUANGCO. Your Honor, I remember that. Ang problema po diyan, ang istatwa is from a private NGO, hindi po government funds iyan. Kung naaalala ko rin po, ako po ay nag-volunteer sa inyo na kung wala pong gustong tumanggap ng istatwa, mayroon po kaming bagay na lugar sa Capas na makakasalo ng istatwang iyan—doon po sa monument ng Death March.

REP. BROSAS. G. Isponsor, Mr. Speaker, kaya po inilagay ang istatwa na iyon doon sa Roxas Boulevard ay may paliwanag din ang mga gustong makakita ng ganoong marker at ganoong istatwa doon mismo sa Roxas Boulevard. Kaya po hindi kaagad-agad tinatanggap ng mga nagpatayo noon iyong eksplanasyon na ilipat na lang natin agad. In the first place, nilagay siya doon at alam po ninyo, iyong paliwanag dito na ito ay reminder of how greed, political ambition and a lack of respect for a nation’s sovereignty caused harm and inflicted pain to the world’s most vulnerable. Kasi comfort woman po siya at iyon po iyong simbolo noong panahon ng digmaan ng Pilipino at Hapon, na ang mga kababaihan natin ay inabuso. It was built to seek justice. It was built to remind us of a dark past which should not be repeated. If the DFA thinks the statue is an insult to Japan, should Rizal Park be demolished also as it may be an insult to Spain? Should we also close our museums that tell of horrible stories of colonization and greed of foreign power? Ganoon po ba tayo tumingin?

REP. COJUANGCO. No, Mr. Speaker. In fact, the DFA was neither consulted nor given notice by the National Historical Commission of the Philippines nor the City of Manila regarding this undertaking. On 28th of April, 2018, the statue was removed to give way to a DPWH project improving the drainage system in the area. According to the Manila city government, Manila City officials were present during the removal only to supervise and assist the DPWH as requested.

REP. BROSAS. G. Isponsor, Mr. Speaker, hindi po katanggap-tanggap iyong pangyayari na ito. Kung kaya, sa totoo lang po, kinakailangan po ng paliwanag ng taumbayan dito kasi hindi lang po iyong mga gumawa at iyong mga nagpagawa ng istatwa na iyon, kundi ang buong Pilipinas po ang dapat bigyan ng paliwanag sa pagtanggal ng istatwa na ito.

With that G. Isponsor, Mr. Speaker, tinatapos ko po ang aking interpelasyon.

REP. COJUANGCO. Marami pong salamat, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. NOEL. Mr. Speaker, I move that we recognize the Hon. Sarah Jane I. Elago for her interpellation.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Elago is recognized.

REP. ELAGO. Mr. Speaker, distinguished Sponsor, good evening. Maraming salamat ho sa pagbibigay sa Representasyon na ito ng mga hinihinging dokumento noong Committee budget deliberation on the DFA budget.

Will the distinguished Sponsor yield to just a few questions from this Representation, Mr. Speaker?

REP. COJUANGCO. Yes, Mr. Speaker.

REP. ELAGO. All right. Okay. During the Committee budget deliberation, I specifically asked for a report on all the presidential visits, but I was only given a list of the presidential visits. Now, I would like to know, since there was a memorandum released just this January from the Office of the President through the Executive Secretary on the subject or directive applying to the foreign travels of all government officials and personnel in the Executive Department, Mr. Speaker, this Representation would like to know the role of the DFA with regard to ensuring compliance with the pronouncements of the President against extravagant and lavish travels abroad of government officials and personnel?

REP. COJUANGCO. May the Honorable Elago clarify, what is the point?

REP. ELAGO. Ano po iyong role ng DFA sa pagtitiyak noong compliance ng ating government officials and personnel pagdating dito sa pagtitiyak na ang mga pahayag ng Presidente laban sa mga magarbo at magastos na mga travels ay hindi na natin makikita sa public service?

REP. COJUANGCO. Mr. Speaker, there is a memo from the Office of President that all offices of the Executive Branch must submit a report of their travels. That is the answer po.

REP. ELAGO. Ito po ba ay tinitingnan ng DFA para makapag-ensure ng compliance? Ang DFA po ba ang tumitingin sa mga report na ito? Ano po iyong mga ginagamit natin na criteria para masabi na hindi ito extravagant, na hindi po ito lavish?

REP. COJUANGCO. I am sure all the departments

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have undergone their own vetting process—what is approved, what is not approved. Once they conduct the travel, then they have to report that to the Office of the Executive Secretary.

REP. ELAGO. Mr. Speaker, distinguished Sponsor, I would like to cite one provision of the said memorandum. It states:

No official foreign travel of government officials and personnel shall be allowed unless it satisfies all the following minimum criteria: (a) the purpose of the trip is strictly within the mandate of the requesting government official or personnel; (b) the projected expenses for the trip are not excessive; and (c) the trip is expected to bring substantial benefit to the country.

Ang nais ko lang malaman po, kung ang memorandum ba na ito, ang ating mga government officials at personnel sa ating Executive, kapag sila ay nag-submit ng report, sino po ang tumitingin dito? Sino ang nagtse-check ng kanilang compliance sa mga nasabing criteria? Paano po natin malalaman kung mayroon mga lumalabag dito? Mayroon na po bang nakahandang mga report? Mayroon na bang nag-submit ng report? Kumusta po ang assessment dito ng DFA o ang DFA po ba ang tumitingin dito?

REP. COJUANGCO. It is Secretary Medialdea and the staff. As far as the DFA is concerned po, they can give you a sample report if that will satisfy her query.

REP. ELAGO. All right. Mr. Speaker, distinguished Sponsor, ang nasabi rin po sa parehong memorandum, mayroon ditong particular responsibility iyong DFA pagdating naman doon sa representation ng ating government officials pagpunta sa mga international conferences at conventions, na 30 araw matapos ang kanilang pupuntahan na convention or conference, dapat na po silang makapag-submit ng naturang report. Iba pa po ito doon sa pangkabuuang report ng ating mga Secretaries na ipapadala sa office ng Executive Secretary and his staff, katulad po ng nasabi ninyo. Ito po ay didiretso sa Department of Foreign Affairs. Sino po ba ang nagtitiyak ng compliance sa DFA pagdating dito sa pagpunta ng ating opisyal na delegasyon sa mga international conferences at conventions?

REP. COJUANGCO. Some agencies under the DFA, upon their return, they submit their report to the DFA and the DFA, in turn, forwards it to the ES and his staff.

REP. ELAGO. Al lright. Mr. Speaker, distinguished Sponsor, nais nating humingi ng proseso kung paano

tinitiyak ng DFA na itong mga pinupuntahan at ginagastusan natin na mga international conferences ay may pakinabang ang ating taong-bayan. Kaya hihingi po ang Representasyon na ito ng ulat ng ebalwasyon ng DFA pagdating sa participation ng Pilipinas sa iba’t ibang pandaigdigang mga komperensiya.

REP. COJUANGCO. Well, some trips are probably for organizations or conventions wherein we have commitments, foreign commitments. So I assume that the agency will not allow the trip if it is not commensurate in importance to the expenses incurred.

REP. ELAGO. Indeed. Iyon nga po iyong gusto natin na tiyakin na kung ano iyong expectation ng kanilang …

REP. COJUANGCO. So, if I may clarify. The Honorable Elago would like a communication from the DFA enumerating the criteria for approval?

REP. ELAGO. Mr. Speaker, the criteria, yes, and the evaluation report thus far since the issuance of this memorandum from the Executive Secretary?

REP. COJUANGCO. Yes, Mr. Speaker.

REP. ELAGO. Thank you, Mr. Speaker, distinguished Sponsor. Now, I would like to ask about the list of presidential visits submitted to me by the DFA, particularly iyong pinakahuling mga trips ng ating Presidente sa Israel at sa Jordan. Ito po nag-drew ng flak galing sa mga netizens. Maski po sa mga kabataan ay pinag-uusapan ito kasabay dito sa mga panahon na pinag-uusapan din iyong mataas na presyo ng mga bilihin. Nandiyan iyong mga detalye na napakalaki daw ng delegasyon, et cetera.

Nais ko lang pong malaman, bilang Representante ng Kabataan na nagnanais na magkaroon din ng mga modelo pagdating sa mga gusto nating mga pagbabago na mangyari sa loob at labas ng gobyerno at maski sa kondukta ng ating mga pampublikong opisyal, hinggil po sa mga pagpaplano sa mga trips na ito, totoo po ba na nasa 300 ang delegation nitong trip sa Israel at Jordan? Ito po ang nakikita po natin, at nakakalungkot na wala po tayong makita na talagang very reliable information with regard to the number of the delegation to Israel and Jordan. Ang sabi po ng Presidential Spokesperson ay nasa 229 pero ang PNA, sabi niya ito ay nasa 300 to 350. Nais po nating malaman kung bakit ganoon kalaki.

REP. COJUANGCO. Mr. Speaker, iyong limited information na nalalaman ko diyan is iyong distansya po ng Israel sa Philippines ay may kalayuan. So, malaki iyong eroplanong ginamit papunta doon. Sayang naman kung si Presidente lang ang laman kaya po iyong

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ibang miyembro ng Gabinete at iyong ibang ahensiya ng gobyerno, basta po mayroong silang counterpart or isasagawa din doon, isinama na po. Iyong private sector po ay hindi nakasama doon dahil kung sinuman ang umabot doon from the private sector, sila po ang nagbayad ng ticket nila sa commercial flight papunta po doon.

REP. ELAGO. Mr. Speaker, distinguished Sponsor, sa commercial plane na ito na kanilang sinakyan, ilan po dito iyong parte ng government at ilan naman po iyong parte ng private sector? We would also like to know, ano po iyong criteria kung paano pinili kung sino iyong sasama doon mula sa private sector? Iyan po ba ay, in its entirety, nasa discretion…

REP. COJUANGCO. Basta ang importante, si Secretary Cayetano ay nandoon po dahil siya po ang head ng DFA. Iyon po ang alam ko. Usually po, hindi lang po sa Israel, maraming gustong sumama pero limitado po ang slots o lugar or budget. So, iyong iba na atat na atat sumama, basta sila ang magbabayad ng sarili nilang gastos, sumasama pero sariling lakad po nila iyon.

REP. ELAGO. Ang nais lang po natin ditong malaman, mayroon ba tayong set of, you know, policies and guidelines as regards these trips. Kahit pa sarili nilang gastos, ang kasama nila ay iyong mga malalaki at matataas nating mga leader ng bansa. Kung kasama sila doon, maaari na ang kanilang pagsama doon may malaking epekto sa taong-bayan, sa mga patakaran natin o kung saan pa na mga papasukin na mga kasunduan ng ating bansa, sa iba pang mga bansa, o sa kung sinuman iyong kanilang mga kakausapin doon. Sa ngayon, mayroon po bang guide o mayroong set of rules or standards on these trips to ensure that this will really benefit all the Filipino people?

REP. COJUANGCO. The guidelines po will be provided and I am sure the guidelines are also based on what is allowed by COA and usually po, lahat po ng state visits generate more benefits than gastos.

REP. ELAGO. Now, Mr. Speaker, distinguished Sponsor, on to my last question. Ang sabi nga po ng ating distinguished Sponsor, Mr. Speaker, may bunga naman na malalaking mga ganansya ang mga state visits na ito para sa ating bansa. Ang Representasyon na ito po ay nabigyan din ng kopya ng iba’t ibang mga kasunduan ng Pilipinas sa iba’t ibang mga bansa pagdating sa iba’t ibang mga sektor at industriya na may pakinabang ang ating bansa. Isa sa mga malapit sa puso natin, lalo na sa ating mga kabataan, ay ang pagkakaroon ng mas magandang kinabukasan sa pamamagitan ng pagkakaroon ng kalidad na trabaho.

May we know, Mr. Speaker, the current economic security strategy of the DFA? Ano po ba ang gampanin ng DFA pagdating sa pagma-maximize ng mga state visits na ito para gawin namang stable ang ating sariling ekonomiya?

REP. COJUANGCO. Thank you po and I apologize for taking time to digest the question. For example, it is the DFA that sets the groundwork for any initiative, for example, that comes from the DTI. So, they make the preliminary connections and make sure that on the time frame or occasion that they are supposed to meet, then they have those terms of reference that you see on TV that the dignitaries sign. So, the prework is done by the DFA.

REP. ELAGO. Mr. Speaker, as we have observed in the list of all the bilateral agreements, most of the jobs we generated are overseas. So, we would like to know what have been achieved this far in terms of domestic job creation, in terms of developing the investment climate here in the country.

REP. COJUANGCO. By helping with all forms of ODA funds which the DFA has a hand or role in preparing together with their counterparts abroad, that creates a lot of employment and also the trickle-down effect to local business. So, I cannot quantify exactly, but if you are asking me if does help, of course, yes.

REP. ELAGO. Mr. Speaker, distinguished Sponsor, nais pong hingin ng Representasyon na ito ang commitment ng distinguished Sponsor pagdating sa pagbibigay sa atin ng detalyadong report dito sa lahat ng efforts ng DFA natin para sa pagtitiyak na ang ating ekonomiya ay makakatindig sa sarili sa pamamagitan ng pagbubukas sa iba’t ibang mga kooperasyon sa iba’t ibang mga bayan at sa iba’t ibang mga bansa.

REP. COJUANGCO. Yes, Your Honor. A report to that effect will be furnished po.

REP. ELAGO. Maraming salamat, Mr. Speaker, distinguished Sponsor. Aasahan po natin agad ang naturang ulat na iyan mula sa ating distinguished Sponsor at mula sa DFA.

Thank you, Mr. Speaker.

REP. COJUANGCO. Salamat din po.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

SUSPENSION OF SESSION

REP. ROMERO. Mr. Speaker, I move for a minute suspension of the session.

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THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 10:21 p.m.

RESUMPTION OF SESSION

At 10:22 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

The Majority Leader is recognized.

REP. ROMERO. Mr. Speaker, we move to recognize Rep. Aniceto “John” D. Bertiz III.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Bertiz is recognized.

REP. BERTIZ. Thank you, Mr. Speaker. Thank you, Majority Leader, and thank you, honorable Sponsor.

On the part of the Minority, having no more Member who wishes to interpellate, I move that we terminate the period of interpellation and debate on the budget of the DFA. I so move, Mr. Speaker.

REP. ROMERO. Mr. Speaker, on the part of the Majority, inasmuch as there is no Member who wishes to ask questions, we move to terminate the period of interpellation and debate on the budget of the Department of Foreign Affairs.

THE DEPUTY SPEAKER (Rep. Arbison). There is a joint motion to terminate the period of interpellation and debate. Is there any objection? (Silence) The Chair hears none; the motion is approved. (Applause)

SUSPENSION OF SESSION

THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 10:23 p.m.

RESUMPTION OF SESSION

At 10:27 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

The Majority Leader is recognized.

SUSPENSION OF CONSIDERATION OF H.B. NO. 8169

REP. DEFENSOR. Mr. Speaker, I move that we suspend the consideration of House Bill No. 8169.

THE DEPUTY SPEAKER (Rep. Arbison). Is there any objection? (Silence) The Chair hears none; the motion is approved.

REFERRAL OF H. RES. NO. 2068ON AN INQUIRY IN AID OF LEGISLATION

REP. DEFENSOR. Mr. Speaker, in accordance with our Rules Governing Inquiries in Aid of Legislation, I move that we refer House Resolution No. 2068 to the Committees on Dangerous Drugs, and Good Government and Public Accountability.

I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). Is there any objection? (Silence) The Chair hears none; the motion is approved.

SUSPENSION OF SESSION

REP. DEFENSOR. Mr. Speaker, I move for a suspension of the session.

THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 10:27 p.m.

RESUMPTION OF SESSION

At 10:30 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

The Majority Leader is recognized.

CONSIDERATION OF H.B. NO. 8169Continuation

PERIOD OF SPONSORSHIP AND DEBATE

REP. DEFENSOR. Mr. Speaker, I move that we resume the consideration of House Bill No. 8169 and that we please direct our Secretary General to read only the title of the measure.

THE DEPUTY SPEAKER (Rep. Arbison). The Secretary General is so directed.

THE SECRETARY GENERAL. House Bill No. 8169, entitled: AN ACT APPROPRIATING FUNDS FOR THE OPERATION OF THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES FROM JANUARY ONE TO DECEMBER THIRTY-ONE, TWO THOUSAND AND NINETEEN, AND FOR OTHER PURPOSES.

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DEPARTMENT OF LABOR AND EMPLOYMENT

REP. DEFENSOR. Mr. Speaker, our parliamentary status is that we are in the period of sponsorship and debate.

I move that we take up the budget of the Department of Labor and Employment and its attached agencies.

THE DEPUTY SPEAKER (Rep. Arbison). Is there any objection? (Silence) The Chair hears none; the motion is approved.

REP. DEFENSOR. To sponsor this budget, Mr. Speaker, I move that we recognize the Hon. Carlo V. Lopez.

THE DEPUTY SPEAKER (Rep. Arbison). The Hon. Carlo Lopez is recognized to sponsor the Department of Labor and Employment and its attached agencies.

REP. LOPEZ (C.). Thank you, Mr. Speaker. May I present for House consideration the budget

of the Department of Labor and Employment and its attached agencies in the amount of P13,000,539,000 for Fiscal Year 2019.

REP. DEFENSOR. Mr. Speaker, before we proceed with the interpellation, may we recognize the Secretary of the Department of Labor and Employment, Secretary Silvestre H. Bello III. (Applause) We also have Undersecretaries Joel Maglunsod, Ciriaco Lagunzad III, Claro Arellano, Jacinto Paras, Renato Ebarle, together with all heads of attached agencies and the regional directors, Mr. Speaker. (Applause)

THE DEPUTY SPEAKER (Rep. Arbison). Welcome to the House of Representatives, our former colleague and the DOLE family.

REP. DEFENSOR. Mr. Speaker, the first to interpellate is the Hon. Salvador “Bong” B. Belaro Jr. I move that the Gentleman be recognized.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Belaro is recognized to interpellate.

REP. BELARO. Mr. Speaker, distinguished Sponsor, considering that you are the handsome Representative from Manila and also the Sponsor of the budget of the Department of Labor and Employment, …

REP. LOPEZ (C.). Handsome.

REP. BELARO. … I am sure that you are familiar with Republic Act 10801, entitled: AN ACT GOVERNING THE OPERATIONS AND ADMINISTRATION OF THE OVERSEAS WORKERS WELFARE ADMINISTRATION. Am I correct?

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BELARO. Am I also correct to assume that he is aware that the said law provides for the protection of overseas workers and their families?

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BELARO. I am sure that he is also aware that the main thrust of the agency is the development and implementation of welfare programs for the benefit of our overseas workers and their families.

REP. LOPEZ (C.). Opo, Mr. Speaker.

REP. BELARO. I am sure that the good Gentleman from Manila is also aware that membership in this OWWA, the agency, is through enforced contribution but there are also voluntary contributions.

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BELARO. In fact, one of the biggest, most potent powers of this agency is the administration of the OWWA Fund, is that correct?

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BELARO. My question, Mr. Speaker, distinguished Sponsor, relates to this OWWA Fund. As you know, perhaps, and you will agree with me, Mr. Speaker, distinguished Sponsor, that the status of the OWWA Fund never appears in the yearly appropriations of the Department of Labor and Employment. Is that correct?

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BELARO. That is the case because it is an off-budget account and so, it can only be located in the BESF, the Budget of Expenditures and Sources of Financing. Is that correct?

REP. LOPEZ (C.). That is correct, Mr. Speaker.

REP. BELARO. Now, my question is: Do you also confirm that in 2015, the receipts coming to this Fund already reached P2,898,554,000?

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REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BELARO. That in 2016, it had reached P2,851,873,000.

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BELARO. Also, in 2017, it had already reached P2,415,276,000.

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BELARO. Mr. Speaker, distinguished Sponsor, I have no problem with the receipts of this income, but I have a problem with the expenditures because there is no itemization of what these expenditures consist of. Am I correct in that observation?

REP. LOPEZ (C.). There is a list of expenditures that are reported to the OWWA Board.

REP. BELARO. Can we request this Committee as well that this Representation to be furnished a copy of that itemization because it is not reflected in the BESF. There is no itemization of expenditures for this P2 billion receipts of the OWWA every year.

REP. LOPEZ (C.). Yes, I will just try to get the information from the OWWA and we will submit it to you, Mr. Speaker.

REP. BELARO. As this Representation mentioned a while ago, Mr. Speaker, distinguished Sponsor, the main thrust of the OWWA is the development and implementation of programs for the welfare of overseas Filipinos and their families. Ang tanong ko po, bilang isa sa mga Kinatawan ng sektor ng edukasyon sa ating bansa, mayroon po ba kayong mga programa sa edukasyon for overseas Filipinos and their families?

REP. LOPEZ (C.). Mayroon po tayong mga scholarship programs para po sa mga overseas workers, mga dependents nila, iyong covering baccalaureate degrees, oho. Vocational-technical education, mayroon din po.

REP. BELARO. Puwede po bang makisuyo na ma-educate ang Representasyon na ito by way of a report kung ano po iyong mga educational programs at scholarships ng inyong ahensiya?

REP. LOPEZ (C.). Yes, Mr. Speaker, we will submit to you the list of those programs.

REP. BELARO. Mr. Speaker, distinguished

Sponsor, with the promise that I will be awaiting my education with respect to this report, I am now resting my case.

Thank you, Mr. Speaker, d is t inguished Sponsor.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. ROMERO. Mr. Speaker, I move that we recognize Cong. Ariel “Ka Ayik” B. Casilao of ANAKPAWIS Party-List.

REP. CASILAO. Thank you, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Casilao is recognized to interpellate.

REP. CASILAO. Well, I have no further questions, but I would like to register my manifestation since I already exhausted the information that I wanted to know during the Committee briefing before the plenary debate. Now, Mr. Speaker, what alarms me most is, first, there were reports that—during the Committee deliberations, this Representation clearly presented, and even the Committee on Labor of this Seventeenth Congress approved a Committee resolution for the Committee on Appropriations to consider augmenting a specific program of the Department of Labor and Employment, particularly the request for additional labor laws compliance officers.

Last year, the Seventeenth Congress approved 136, however, it is far from the 10 percent supposed requirement for LLCOs. Now, we would like to augment that particular program. Why? Mr. Speaker, in view of the worsening and continuing practice of contractualization because, although the Security of Tenure Bill had been approved on Third Reading in the House of Representatives, its Senate counterpart has yet to be approved. While Executive Order No. 51 issued by the President last May 1, 2018 and Department Order No. 174 remain, the practice continues and the employers continue to circumvent the existing labor laws. At the end of the day, the workers always are on the losing end and that is why, as a stopgap measure, one of the possible measures that can reduce—because it will definitely not eradicate the practice of contractualization—is for the Department of Labor in their performance of inspecting businesses, to check whether they are compliant or non-compliant with the existing labor standards.

I am alarmed, Mr. Speaker, and I would like to put on record my disgust that, instead of considering that particular item, there is a report of an already slashed budget of the Department of Labor and Employment. Now, again, Mr. Speaker, we are currently realigning,

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we have approved the Committee of the Whole report on a certain portion of the National Expenditures Program. Again, I would like to appeal to the few remaining colleagues of mine, I would like to appeal not only to your conscience but also to your heart, to help us in reinstating or augmenting the specific item or program of the Department of Labor and Employment. This request of mine is in fact insignificant compared to the trillions of pesos that we will be approving on Third Reading for the General Appropriations Act for 2019. The impact is that it will be favorable not only to the Department of Labor and Employment, but also to the Filipino workers suffering from the continuing onslaught of contractualization, that it will be lessened at least. I hope that this manifestation, Mr. Speaker, distinguished Sponsor, possibly will not fall on deaf ears.

Thank you, distinguished Sponsor, Mr. Speaker.

REP. LOPEZ (C.). Maraming salamat po sa inyong manipestasyon. Makakaasa po kayo na gagawin ng Kagawaran ang lahat para po madagdagan ang ating pong mga labor law compliance officers. In fact, ang sabi po ng ating Secretary ay talagang gusto nilang dagdagan at iyan po ay sisikapin namin.

Maraming salamat po.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. ROMERO. Mr. Speaker, I move to recognize Rep. Arlene D. Brosas of GABRIELA Party-List.

THE DEPUTY SPEAKER (Rep. Arbison). The Hon. Arlene D. Brosas is recognized.

REP. BROSAS. Thank you, Mr. Speaker. Ilang katanungan lang po, Mr. Sponsor. Sinisenyasan po ako ng Secretary. Hindi po ako magagalit. Tanong lang po. (Laughter)

REP. LOPEZ (C.). Ikinagagalak ko pong sagutin.

REP. BROSAS. Thank you, Mr. Speaker. Hinggil sa voluntary regularization ng SM—Mr.

Speaker, isa sa mga itinanong ng GABRIELA sa Committee level deliberation ng DOLE budget for 2019 ay kaugnay ng tila exemption ng SM malls sa mga kontraktwal. Sa listahan ng mga kumpanyang may compliance order for regularization ng mga kontraktwal, sinabi ni DOLE Sec. Silvestre H. Bello III na nagsagawa ang SM ng voluntary regularization ng mga manggagawa nito. Subalit hindi nilinaw kung ito ba ay naaayon sa kasalukuyang framework hinggil sa labor standards compliance.

Gusto po naming i-klaro iyong usapin. Una,

nagkaroon ba ng kahit isang inspeksiyon ng DOLE sa SM malls para i-verify ang sinasabing voluntary regularization ng mga empleyado ng SM at ilan ang manggagawang ni-regularize umano ng SM?

REP. LOPEZ (C.). Nagkaroon po ng inspeksiyon at nagkaroon din po ng voluntary regularization. For the first semester, 6,999 workers po ang na-regularize at magsa-submit po sila ng another report for the second semester.

REP. BROSAS. G. Sponsor, kung may inspeksiyon sa sinasabi ninyo at nag-voluntary regularization ng 6,900, kalian po iyong inspeksiyon isinagawa at saan pong branches ng SM ang sinaklaw ng inspeksiyon? Direct regularization ba ang naganap o sa mga agencies lang na naging regular ang mga manggagawa? Tatlo pong tanong iyon.

REP. LOPEZ (C.). Halos lahat po ng SM branches all over the Philippines ay na-inspeksiyon at direct principal po ang SM.

REP. BROSAS. Direct regularization?

REP. LOPEZ (C.). Direct regularization po.

REP. BROSAS. Okay.

REP. LOPEZ (C.). Puwedeng i-submit namin ang listahan po.

REP. BROSAS. Yes. Thank you, Mr. Speaker. Iyong request po para sa DOLE na mag-submit ng SM report on the supposed regularization of its employees, ipadala na lang po. Sana po ay may breakdown din ng jobs regularized, kung anong particular jobs ang na-regularized.

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BROSAS. Next, natanggap namin iyong requested list of manpower agencies ng SM pero na-browse ko lang po ito. Kapansin-pansin na janitorial at security services lang ang subcontracted functions. Paano nangyari na walang subcontracted sales employees ang SM, halimbawa, ang mga empleyado sa SM supermarkets at sa SM department stores? Janitorial at security services lang po, so, ang ibig sabihin, ano ang status nitong sales employees at saka mga empleyado sa supermarkets at department stores?

REP. LOPEZ (C.). Iyon pong mga cashiers ay directly hired, at iyon pong mga salepersons ay empleyado po ng concessionaires.

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REP. BROSAS. So, Mr. Sponsor, Mr. Speaker, sa mga concessionaires. Ang ibig sabihin ba nito ay sila ay agencies?

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BROSAS. So, nasa ahensiya pa rin sila at wala pa rin regular? Hindi pa rin sila regular at kontraktwal pa rin sila sa mga ahensiya.

REP. LOPEZ (C.). Opo, tama po kayo. Iyon pong mga salespersons ay empleyado ng concessionaires at iyon pong mga bagger at cashiers ay direct hire po ng SM, walang third party po.

REP. BROSAS. So, Mr. Sponsor and Mr. Speaker, wala pa rin talagang solusyon dito, hindi pa rin talaga nagawan ng paraan.

Anyway, my next question po—Umugong sa social media ang Facebook post ng isang aplikante sa Landmark Makati kaugnay ng hindi kanais-nais na kalagayan ng restrooms ng mga empleyado—sa Makati po ito, Landmark—kung saan sira ang kisame, marumi ang palikuran, may mga molds ang walls ng CR. Paano po ito nakalusot sa regulasyon ng DOLE? May ginawa bang hakbang ang DOLE para imbestigahan itong Landmark Makati?

REP. LOPEZ (C.). Na-inspect na po ang mga establisyamentong ito at may corrective measures na po na naganap sa Landmark.

REP. BROSAS. May naganap na, Mr. Sponsor, ano po ang mga iyon?

REP. LOPEZ (C.). Corrective, opo— nagkaroon na po ng inspeksiyon.

REP. BROSAS. Mayroon po ba kayong report sa resulta niyan?

REP. LOPEZ (C.). Mayroon po at isa-submit po namin sa inyo.

REP. BROSAS. Okay, thank you, Mr. Speaker. Mr. Speaker, actually, iyon lang pong dalawa ang question ko pero parang lumalabas po, mula sa mga sagot ninyo, na sa particular cases ng SM at Landmark, they only highlight the various schemes of companies in skirting compliance and labor regulations, especially on the aspects of security of tenure. Ang ibig sabihin po, hindi pa rin natin nasosolusyonan iyong SOT or security of tenure, ano po? Kitang-kita po iyong doon sa SM case.

Being the biggest retail company, the practices of SM certainly mirror the schemes in other retail

companies. Ang punto ko po, kailangan pang paghusayan ng DOLE ang labor regulation program nito, partikular ang labor laws compliance. Dapat po tiyakin ang pag-hire ng sapat na labor inspectors dahil sa kalagayan na talamak ang violations ng mga kumpanya sa mga karapatan ng mga manggagawa natin. Iyon lang po.

REP. LOPEZ (C.). Tama po, Mr. Speaker.

REP. BROSAS. Ini-ensure lang natin iyong kalagayan ng mga manggagawa natin at gusto po natin talaga na mayroong tunay na security of tenure ang ating mga manggagawa.

Maraming salamat po, Mr. Sponsor. Maraming salamat, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. DEFENSOR. Mr. Speaker, the next to interpellate is the Hon. Aniceto “John” D. Bertiz III. I move that we recognize the Gentleman.

THE DEPUTY SPEAKER (Rep. Arbison). The Honorable Bertiz is recognized.

REP. BERTIZ. Thank you so much, Mr. Speaker. Thank you so much, Majority Leader. Magandang gabi po sa pamilya ng DOLE at ganoon na rin po sa honorable Sponsor.

Kanina po ay na-discuss po ng aking kasamahan sa Minorya regarding po sa batas Republic Act No. 10801, which is the OWWA Charter. Mayroon lang po akong gustong i-raise with regard to Chapter 14, Miscellaneous Provisions of Section 54. Mr. Speaker, honorable Sponsor, basahin ko lang po:

SEC. 54. Rebates for Long-time Members. – In recognition of the contribution of long-time members to the OWWA Fund, the OWWA shall develop and implement a program for the grant of rebates or some form of financial assistance to OFWs who have been members of the OWWA for at least ten (10) years and who, along with their families, have not availed of any service or benefit from the OWWA.

Mr. Speaker, honorable Sponsor, what is the status of this program?

REP. LOPEZ (C.). Tama po kayo, mayroon po talagang rebate na magaganap at sa ngayon po ay pinag-aaralan po nila iyon mga dapat po na

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tumanggap. Ngayon pong December ay lalabas po ang implementing rules and regulation at sa first quarter of the year po ang implementasyon ng, for 2019, ang pagbibigay po ng rebates sa mga miyembro po ng OWWA.

REP. BERTIZ. Thank you, Mr. Speaker and honorable Sponsor. How many members of the OWWA do we have right now as of 2018?

REP. LOPEZ (C.). We have 2.5 million active members at 5 million po na inactive members.

REP. BERTIZ. So we have 2.5 million active members. From this number of members, how many have been in the OWWA for at least 10 years?

REP. LOPEZ (C.). Sa ngayon po, mayroon po tayong, more or less, mga 20,000 na miyembro po for 10 years or have been members for 10 years.

REP. BERTIZ. Kasama rin po ba rito, honorable Sponsor, iyong mga nag-contribute na mahigit 10 hanggang 15 taon, pero hindi na po sila bumalik sa ibang bansa?

REP. LOPEZ (C.). Kasama po dito.

REP. BERTIZ. Ang ibig sabihin po nito ay ito iyong mga hindi naka-avail kaya mayroon po silang makukuhang rebate?

REP. LOPEZ (C.). Sa ngayon po ay hindi pa natin alam kung sino po doon sa 20,000 ang hindi pa nakapag-avail kaya nga po iyan po ay pinag-aaralan po ngayon ng OWWA. Ito po ay ma-i-implement nga po next year at lalabas po ang IRR ngayon pong Disyembre.

REP. BERTIZ. Thank you po, honorable Sponsor and Mr. Speaker. For example, iyong isang OFW ay nasa Saudi Arabia from 1990 to 2002, pagkatapos, pagdating ng 2003 ay tumigil na siya. Hindi po siya naka-avail ng any benefit or financial assistance, ganoon rin po ang kanyang pamilya. Mayroon po ba siyang makukuha dito?

REP. LOPEZ (C.). Siya po ay covered po in that situation.

REP. BERTIZ. Mr. Sponsor, puwede po bang malaman, more or less, kung magkano po ang puwede niyang makuha?

REP. LOPEZ (C.). Sa ngayon po ay hindi po natin

made-determine dahil iyong actuarial, kailangan po munang malaman kung ilan pa ho ang hindi nakapag-avail.

REP. BERTIZ. Ito ay 12 taon po.

REP. LOPEZ (C.). I am sorry.

REP. BERTIZ. Sa 12 taon, if you will compute it from 1990 to 2002, more or less, ito ay 12 to 13 years po.

REP. LOPEZ (C.). Hindi pa ho natin alam iyong exact figure pero kailangang malaman iyong kabuuan para malaman po kung ano iyong kakayanin ng pondo.

REP. BERTIZ. Okay. What is the computation for this rebate based on the actuarial study that you have mentioned, as commissioned by the OWWA? Mayroon po ba kayong na-engage na third party or insurance commission or any insurance company to do this actuarial study?

REP. LOPEZ (C.). Mayroon na po tayong na-engage na actuary para po tingnan ang mga bagay na ito. Doon po natin malalaman kung ano po iyong data na hinihingi po ninyo.

REP. BERTIZ. Actually, kaya ko ho itinatanong ito ay gusto kong malaman kung magkano iyong makukuha ko na rebate. From 1990 to 2002, ako ay OFW sa Saudi Arabia. Baka mas malaki po sa budget na binibigay sa akin ng Congress. Moving forward, do we have a sort of guideline for this implementation, honorable Sponsor?

REP. LOPEZ (C.). Mayroon po at sa December po mala-launch po iyong guidelines for approval by the OWWA Board.

REP. BERTIZ. Sir, alam po natin na marami pong nanonood na aking mga kababayang OFW ngayon, kasi nga po ito ay lumabas at naisabatas na ang rebate na ito. Ang nakalulungkot nga lang po ay may mga namatay na mga nag-contribute at hindi na po inaabutan itong rebate. Another question, I am particularly concerned with is the phrase doon po sa Rule No. 14 ng Miscellaneous Provisions ng No. 54 that, and I quote, “x x x along with their families, have not availed of any service or benefit from the OWWA. ” Does this provision suggest a ground for the disqualification of members to enjoy this program once they have already availed of any services from the OWWA? Iyong sinabi po sa probisyon na ito that, “x x x who have been members of OWWA for at least

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ten (10) years and who, along with their families, have not availed of any service or benefit from the OWWA. x x x”

REP. LOPEZ (C.). Yes, Mr Speaker.

REP. BERTIZ. Kung ito po ay hindi naman niya po kasalanan, halimbawa, kung sakali po sila ay na-repatriate, ang ibig sabihin po nito ang gumastos ng repatriation at nagbigay ng financial assistance ay ang OWWA, so, wala na po, forfeited na iyong kanyang rebate. For example, iyong isang minaltrato na domestic worker, kahit naghulog na po siya ng ilang taon sa OWWA, ibig sabihin po ba nito ay hindi na siya makakapag-avail ng serbisyo na ito?

REP. LOPEZ (C.). Totoo po iyon na nakalagay po sa batas na once na nag-avail na po ang isang member, hindi na po siya makakapag-avail ulit. Pero kung hindi pa ho siya nakakapag-avail ay pupuwede ho siyang makakuha ng rebate o availment.

REP. BERTIZ. Alam ko po na ang ating honorable Secretary of Department of Labor is also the Chairman of the OWWA Board, tama po ba?

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BERTIZ. Mr. Sponsor, mayroon po ba tayong exact date kung kailan po natin puwedeng ipangako ang rebate na ito—ngayong taon, next year, after one year, after two years or bukas?

REP. LOPEZ (C.). Wala pa hong eksakto pero sa first quarter of next year po, ang kanila pong inaasahan ay mai-implement ng OWWA ang rebate para mga miyembro.

REP. BERTIZ. Mr. Speaker, sa ngayon po kasi, mayroon tayong 5 million, nabanggit ninyo po, honorable Sponsor, na mga non-active members na at 2.5 million po iyong active members. Ano po ba iyong ginagawa ng ating OWWA para sila ay mailagay sa isang database? Bilang isang dating OFW, alam ko pong mano-mano iyan. Paano po kaya natin masosolusyunan ito dahil kung babalikan po natin iyong 5 milion na iyon at wala po tayong tinatawag na proper database system ngayon sa OWWA, ay imposible po talaga na ma-implement ito for the next, I do not know, how many years. God help us.

REP. LOPEZ (C.). Mayroon na po tayong database noong binabanggit na mga member ngunit ini-input pa

ho iyong mga information ng mga nakapag-avail na at saka iyong hindi pa nakapag-avail, mayroon na pong database.

REP. BERTIZ. Okay po. Wala na po akong katanungan. Maraming-maraming salamat po. Isa na lang nga po pala, iyong mga tumataas na naman na bilang ng mga suicide cases. Just recently, kung nabalitaan ninyo, mayroon pong namatay sa Singapore na, actually, kababayan po mismo ng ating administrator ng OWWA, na taga-Iloilo. Ang nakakalungkot po, on the third day of the reported death of that OFW in Singapore— I will give you the name po, just to be clear, Ana Basa Barreto, 30 years old, taga Barangay San Lucas, Barotac Viejo, Iloilo. Based on the incident report, ang date of death is September 13 at dumating ang cadaver sa Maynila ng September 15. So, paano po nangyari iyon? Ano po ba ang ginawa ng OWWA at POEA dito, dahil in the history po, ako bilang isang Representante ng OFW at dating OFW, ay hindi pa po nangyari sa history natin na ang isang reported suicide daw ay umuwi in less than three days. Kaya ang big sabihin ay walang nangyaring autopsy at imbestigasyon sa pagkamatay po ng isang OFW na si Ana Basa Barreto na taga-Iloilo po.

REP. LOPEZ (C.). Sa ngayon po ay ino-obtain pa ho iyong report mula doon sa host embassy sa mga imbestigasyon na ginanap po sa Singapore. On the Philippine side ay makikipag-usap pa rin ho sila sa NBI para po malaman iyong imbestigasyon na ginaganap po rito.

REP. BERTIZ. Maraming salamat po, Mr. Speaker and the honorable Sponsor. May I get the updated report of all the suicide cases just for this year. Can you submit it to this honorable Representation?

Again, magandang gabi po sa inyong lahat.

THE DEPUTY SPEAKER (Rep. Arbison). The Majority Leader is recognized.

REP. BERTIZ. Salamat po, Mr. Speaker and the honorable Sponsor,

REP. DEFENSOR. Mr. Speaker, I move that we recognize the Hon. Anthony M. Bravo, PhD.

THE DEPUTY SPEAKER (Rep. Arbison). The Hon. Tony Bravo is recognized.

REP. BRAVO (A.). Thank you, Mr. Speaker. Will the distinguished Sponsor yield to some questions from this Representation?

REP. LOPEZ (C.). Yes, Mr. Speaker.

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REP. BRAVO (A.). Thank you. Mr. Speaker, distinguished Sponsor, first, I would like to acknowledge receipt of the report that was submitted by the DOLE which comprises six components, and I would like to thank the Department for their compliance.

On that report, I would like to focus on the Social Amelioration Program, Mr. Speaker, distinguished Sponsor. I am very concerned about this because this is an assistance that augments the income of sugar workers and farmers, one of the poorest sectors of our society. It is actually being managed by DOLE or the Department of Labor. Am I correct, Your Honor, distinguished Sponsor?

REP. LOPEZ (C.). Yes, Your Honor.

REP. BRAVO (A.). The Social Amelioration Program or SAP in the sugar industry has the following components, that is, the Cash Bonus Distribution Program, Maternity Benefit Program, Death Benefit Program, Socio-economic Projects and Tripartite Consultative Mechanism. Am I correct?

REP. LOPEZ (C.). Yes, Your Honor.

REP. BRAVO (A.). Let me proceed immediately to the findings of the COA in 2016. From this report, I have extracted a significant observation which, since it was released in 2016, I suppose, had been acted upon by the Department. It is about the following recommendations, Mr. Speaker, distinguished Sponsor—first, the accumulated unclaimed bonuses, which amounted to P596,866,549, remain unliquidated by the mills and planters. Was it acted upon already by the Department?

REP. LOPEZ (C.). Tama po. We have issued demand letters.

REP. BRAVO (A.). So, there were already demand letters issued to these mills and planters?

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BRAVO (A.). Another recommendation was that, the Department should create a monitoring system so that this failure of remittance from the mills will be monitored and the appropriate action should be instituted on time in favor of the farmers.

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BRAVO (A.). On the settlement of these allowances, it appeared that out of 100 percent, Mr. Speaker, distinguished Sponsor, only 26.67 percent was fully implemented. That was the report in 2016. So, if I

am correct, there must have been action already by the Department. Are we assured that the implementation or the recommendation, as far as these allowances and suspensions are concerned, was already complied with by the Department?

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BRAVO (A.). Are we already assured that the farmers who will benefit from the Social Amelioration Program will be taken care of by the Department of Labor and Employment?

REP. LOPEZ (C.). Yes, Mr. Speaker.

REP. BRAVO (A.). So, with that assurance, Mr. Speaker, distinguished Sponsor, I am now happy that our farmers will be benefitting from this program which is the very intention of the law.

Since no other member from the Minority would want to ask questions, I move to terminate the period of interpellation and debate on the budget of the Department of Labor and Employment, including its attached agencies. I so move, Mr. Speaker. (Applause)

REP. DEFENSOR. Mr. Speaker, the Majority joins the motion of the Gentleman in the termination of the period of interpellation and debate on the budget of the Department of Labor and Employment. I so move, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Arbison). There is a joint motion to terminate the period interpellation and debate on the budget of the Department of Labor and Employment and its attached agencies. Is there any objection? (Silence) The Chair hears none; the motion is approved. (Applause)

SUSPENSION OF SESSION

THE DEPUTY SPEAKER (Rep. Arbison). The session is suspended.

It was 11:11 p.m.

RESUMPTION OF SESSION

At 11:12 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Arbison). The session is resumed.

The Majority Leader is recognized.

SUSPENSION OF CONSIDERATION OF H.B. NO. 8169

REP. DEFENSOR. Mr. Speaker, I move that

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we suspend the consideration of House Bill No. 8169.

THE DEPUTY SPEAKER (Rep. Arbison). Is there any objection? (Silence) The Chair hears none; the motion is approved.

SUSPENSION OF SESSION

REP. DEFENSOR. Mr. Speaker, I move that we

suspend the session until one o’clock in the afternoon of Friday, September 21, 2018.

THE DEPUTY SPEAKER (Rep. Arbison). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The session is suspended until Friday, September 21, 2018, at one o’clock in the afternoon.

It was 11:13 p.m.

Published by the Publication and Editorial Service, South Wing Basement • 931-7868; 931-5001 local 7602The Congressional Record can be accessed through the Legislative Documents of the official website

of the House of Representatives at www.congress.gov.ph FLLILTN/10032018