My friend, Cebu City activist and civil society leader Gus Go, strongly believes that were it not for our irresponsible and corrupt politicians, our country should not be poor. If we pay attention to what is being done with our taxpayers’ money these days, it is not difficult to agree with him.
Vice-President Sara Duterte recently blurted out, when questioned by members of the Lower House about her budget proposals, “there are no rules, rules.” When she demanded that the Chair of the legislative committee investigating her budget proposals be replaced, she had to be reminded that she was a resource person at the hearing and had no authority to demand such a change. In 2022, when questioned about her demand for more and more confidential funds (which do not have to be accounted for) she said that those who were objecting to her request were violating the Constitution!
Sara Duterte’s budget proposal as Vice-President now totals P2.9 billion. This is the biggest allocation ever for any vice-president in our history. Here in Cebu, I often see a large empty bus with the sign “Office of the Vice-President of the Philippines.” Once, I saw it parked beside a building sporting a sign that said, “Office of the Vice-President of the Philippines.” Why she has a huge bus and an office in Cebu does not make sense since the VP is only meant to serve as President in case the elected President dies or is incapacitated. I hope she does not also maintain these facilities in other parts of the country! If so, it indicates that she is indeed planning to run for President. Horrors.
I have great respect for former Central Bank Governor Felipe Medalla, who resigned from his cushy job (the highest paid government post) to return to academe as he did not agree with the concept for the Maharlika Investment Fund (MIF). Sovereign Wealth Funds, per Medalla, should be invested in by governments with surplus funds. The Philippine government is in deficit! The MIF has an authorized capitalization of P500 billion. The government has allocated P50 billion to it from earnings of the Central Bank, the Philippine Amusement and Gaming Corp. (PAGCOR), and other corporations. The Land Bank and the Development Bank of the Philippines (DBP) have initially contributed P50 billion and P25 billion to it respectively.
At a recent legislative hearing, MIF President Rafael Consing, Jr. reported that it is still seeking projects to invest in. It has been over a month since the initial funds were transferred to it. He reported, however, that MIF had “interest earnings.” That means that the government banks where it has deposited the P125 billion have paid interest on monies that they themselves had in fact contributed. This expense is in addition to the opportunity costs that LANDBANK and DBP have incurred on the billions that they have provided to MIF, which they could otherwise have invested themselves.
Now, Finance Secretary Rafael Recto has proposed listing the LANDBANK and the DBP in the Stock Exchange. Is it because with the billions of pesos they were mandated to contribute to MIF, they are now reeling from the reduction in their own investible funds?
The MIF is looking for private sector partners in large infrastructure projects and development investments in rural areas, as a “development agency” per Consing. I wonder if private sector investors would be interested in partnering with a government institution that was created by politicians who may want to get something in return for their signatures. Meanwhile, more and more funds are to be contributed by government banks and corporations in the course of time.
The much-ballyhooed dolomite beach which the Department of Environment and Natural Resources reclaimed on Roxas Boulevard has been abandoned. Aside from the nonsense that the environment agency had envisioned, it could no longer be maintained. Has anyone been made accountable for the waste of government resources, and damage to the environment, from the harm to the corals in Manila Bay, and the dolomite sources in Cebu Province?
Here in Cebu, there is a traffic bottleneck at the intersection between the pleasant and gracious Gorordo Ave. and Salinas St. A few years ago, a huge PDAF*-funded overpass was proposed to be built on Gorordo, but was stopped when civil society leaders campaigned against it. The protesters took the position that the ugly overpass was not the correct solution for the heavy traffic in the area. The traffic bottleneck can actually be relieved easily by reducing the parking area of JY Square on the intersection in order to flare traffic from Gorordo right to Salinas. There is also a humongous space occupied by a religious institution that can be partly taken over to allow Gorordo to be widened. Plus, the “island” around which traffic turns into five or six corners could certainly be redesigned to allow for the smoother flow of traffic. Why this is not being done is a mystery. The traffic jams cause the waste of expensive gasoline, and of time which could be used for more productive activities, instead of car users being parked in heavy traffic.
These are just a few examples of waste of government resources. Multiply that a few more times, and you can understand why Atty. Gus Go thinks the way he does.
* Priority Development Assistance Fund
Teresa S. Abesamis is a former professor at the Asian Institute of Management and fellow of the Development Academy of the Philippines.
