Money for irrigation went to roads—and beneficiaries include congressmen.

INSTEAD OF being used to repair and construct irrigation systems, about P500 million in funds were used for farm-to-market roads.

The anti-corruption watchdog Bantay Pondo at Bantay Boto ng Bayan found this unusual when it monitored the release of the P3 billion NIA irrigation funds early this year, Danilo Ramos of the peasant group Kilusang Magbubukid ng Pilipinas (KMP) told NEWSBREAK.

The group has not yet concluded its investigation on the irrigation funds. NIA officials, according to Ramos, told them that the funds were diverted to road construction because that was what the local government units demanded. However, he said members of their chapters in the provinces have yet to see construction projects in the provinces that were supposed to benefit from the irrigation fund.

The allocation for irrigation, funded partly through the 2007 national budget and partly through a loan obtained by the National Irrigation Administration (NIA) from the National Development Corporation (NDC), were released between January and March this year, NIA internal memos we obtained show.

The lists of beneficiaries for farm-tomarket roads are dated February 16, 2007. All the three lists include names of congressmen and other government officials who were to be identified as the “proponent” of each project.

One memo, dated March 7, 2007, was accompanied by a list of projects worth P500 million to be charged against a special allotment release order or SARO. Another memo, dated March 14, 2007, was accompanied by a list of projects worth P1 billion to be charged against another SARO.

The timing of the releases—the middle of the cropping season—was also strange according to KMP’s Carl Ala. “It should be after the harvest season.”

KMP, together with other fisherfolk, religious and youth organizations, formed Bantay Pondo at Bantay Boto ng Bayan during the election season to monitor the use of agriculture funds in the administration’s campaign and to prevent a repeat of the fertilizer fund scam, where public funds intended to buy fertilizer were used to gain favors from President Arroyo’s allies during the 2004 presidential election. “We do not want a Joc-joc part 2,” Ramos said.

Watchdogs say that the fund must be closely scrutinized, including the P1.76 billion that was slated for the repair and rehabilitation of several infrastructure facilities that were damaged by super typhoons Milenyo, Paeng, Reming, and Seniang last year.

The funds include the P500 million released to the National Electrification Administration for the completion of the rehabilitation of the distribution lines of electric cooperatives damaged by the typhoons and some P400 million for the repair and rehabilitation of buildings that were destroyed by the typhoons in state universities and colleges in Calabarzon, Mimaropa, Bicol, Western Visayas and in the National Capital Region.

Winning senatorial candidates Panfilo Lacson (Genuine Opposition) and Francisco Pangilinan (Independent) questioned the timing of the release of the funds as this happened toward the end of April, only about three weeks before election day.

“We do not question the purpose of this aid, but the timeliness of its release is rather controversial and seemingly imprudent of the government, given that we are still in the election period and that they are heavily campaigning for their own bets,” Pangilinan said in a statement on the day the funds were released.

Lacson, for his part, said the presumption of regularity may no longer hold during the election period because of the Arroyo government’s track record of using funds to bankroll the campaigns of administration candidates.

To the administration’s credit, no army of street sweepers in uniforms bearing candidates’ names roamed the streets during the recent campaign season. There was no massive distribution of health cards either—at least not on the same scale as that which happened prior to the 2004 presidential elections.

The budget department also delayed some key fund releases during the campaign season. Among them were the P800 million in funds earmarked for the rehabilitation of communities that had been affected by the Petron oil spill in Guimaras and the calamity funds that were supposed to go to the Bicol provinces which were devastated by typhoons last year.

Budget Secretary Rolando Andaya Jr., was quoted in news reports as saying the funds are available but projects and programs are being scrutinized. “With elections coming, we are very careful.”

With new taxes, the administration has money to spend, former National Treasurer Leonor Briones says in an interview. Moreover, she adds, the 2007 budget contains vague provisions that the administration can use as authority to spend funds for whatever project it chooses.

Among these are the various special purpose funds. It is crucial that disbursements from these funds be monitored, Briones said, because of their vague character.

The special purpose funds include the agrarian reform fund (P8.6 billion), the calamity fund (P9 billion), the priority development assistance fund (P11.4 billion), and the unprogrammed fund (P61 billion). Budget watchdogs say fund releases, especially during the election period, should be thoroughly audited.

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