Ombudsman to charge PNoy, Abad over DAP controversy

Barely over a month before she steps down from office, Ombudsman Conchita Carpio Morales has found probable cause to indict former President Benigno Aquino III and former Budget Secretary Florencio Abad for usurpation of legislative powers over the Disbursement Accelaration Program (DAP) controversy.

The charge for violation of Article 239 of the Revised Penal Code stemmed from the unlawful issuance of National Budget Circular (NBC) No. 541, which implemented the P72-million DAP.

Through DAP, government agencies are allowed to withdraw unobligated amounts even without the approval of Congress or Senate. This was a replacement of the Priority Development Assistance Fund (PDAF), which was used in several high-profile scams.

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However, the Ombudsman’s May 22, 2018 resolution stated that “a reevaluation of the case establishes that the individual actions of respondent Aquino and respondent-movant Abad showed a joint purpose and design to encroach on the powers of Congress by expanding the meaning of savings to fund programs, activities, and projects under the DAP.”

“Abad’s act of issuing NBC 541 cannot be viewed in a vacuum. The evidence on record shows that an exchange of memoranda between [Aquino] and [Abad] precipitated its issuance. Verily, without the approval of the said memoranda by respondent Aquino, NBC 541 would not have been issued,” it added.

According to Morales’ resolution, Aquino “specified his unqualified approval” of the DAP in two instances.

First was when Aquino granted the “omnibus authority to consolidate fiscal year 2012 savings/unutilized balances and its realignment” and the next was the “grant of authority to withdraw unobligated balances of national government agencies for slow-moving projects/expenditures as of 30 June 2012 and its realignment.”

In both instances, Abad sought for Aquino’s approval and it was “knowingly” given by the former president. “His approval prompted the issuance of NBC 541 which directed the withdrawal of unobligated allotments and unreleased appropriations and their declaration as savings, which is contrary to law,” the resolution stated.

Aquino should have looked into each item on the memorandum before signifying his approval, the Ombudsman said.

“An examination of the Memorandum would show that respondent Aquino made marginal notes on several expenditure items and on the approval page. Such marginal notes show meaningful discussion between respondents and not mere reliance of a superior on a subordinate. Thus, respondent Aquino cannot rely on the Arias doctrine,” the resolution added.

The Office of the Ombudsman – Special Panel acted on the complaint filed by Carlos Isagani Zarate, Renato Reyes, Benjamin Valbuena, Dante LA Jimenez, Mae Paner, Antonio Flores, Gloria Arellano and Bonifacio Carmona Jr.