Press Release
December 4, 2008

CHED asked to explain P854 million "pork barrel" for its commissioners

Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) yesterday asked the Commission on Higher Education (CHED) to explain how it is utilizing the P854 million Higher Education Development Fund (HEDF) under the national budget, which was created by Congress to upgrade the quality of learning at the tertiary level.

"Is it true that the CHED commissioners solely decide on the projects to be funded from HEDF so that this has become some sort of a pork barrel fund for these officials?" he asked during the ongoing debates on the proposed P1.4 trillion national budget for fiscal year 2009.

The HEDF, a special fund created under Education Act (Republic Act 7722), is derived from the remittances of travel tax collections by the Philippine Tourism Authority, a share in the revenues of on-line lotto operations of the Philippine Charity Sweepstakes Office and a share in the collections of fees by the Professional Regulation Office.

The special fund is on top of the annual regular budget of CHED, amounting to P716.97 million next year.

Pimentel asked CHED officials, led by Chairman Emmanuel Angeles, to clarify a report that the construction and maintenance of some of the Commission's regional offices were funded by the HEDF.

"What is the legal basis for this expenditure in the light of the fact that the Education Act of 1994 states that the fund should be used exclusively "for the strengthening of higher education in the entire country?" the senator from Mindanao said.

He likewise pointed out that section 10 of RA 7722 states that "No part of the seed capital of the Fund, including earnings thereof, shall be used to underwrite overhead expenses for administration."

Pimentel also asked how much of the HEDF is used by the CHED on a year-to-year basis and how does CHED determine the spending levels for this fund.

He called on the Commission to explain the criteria being used to determine projects for funding by the HEDF. He asked if geographical balance is one of the criteria, in which case the state universities and colleges from Mindanao should get a fair share from the special fund for purpose of equity.

The minority leader supported the move of the House of Representatives to put a provision under the 2009 general appropriations act that will require the CHED to submit a quarterly report on fund release and utilization from the HEDF to Congress, the Department of Budget and Management and the Commission on Audit.

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