Transcript of "Headstart" interview with Sen. Chiz
Karen Davila Interview with Sen. Francis Guevara Escudero (FGE)

DAVILA: Welcome to Hot Copy, Sen. Chiz. Thank you for coming to the show.

FGE: Good morning to our televiewers. Magandang umaga.

DAVILA: Alright, I wanna start first. Before the budget, I wanna ask first about the word war yesterday between Miriam and JPE. Are there rules against senators attacking each other. I mean, to the point that it's below the belt? There's an accusation of being philander, sleeping with a (inaudible), to that level?

FGE: Well, for as long as they can prove it. But the rules state that you cannot use unparliamentary language. What unparliamentary means is established by tradition in Congresses all over the world. And surely, yung sinungaling, yung bobo, yung mga ganung salita, which are value judgments, cannot be considered parliamentary in any part of the world.

DAVILA: So what you're trying to say is there are rules that you cannot use parliamentary language. But Sen. Miriam has used in the past, G-A-G-O... I mean, repeatedly.

FGE: Well, definitely, as Sen. Osmeña said, if at all, I think the record should be reviewed to find out what words are unparliamentary and should be stricken off the records. Ang panget naman, 10 years, 20 years down the road babasahin ng mga kababayan natin yung records ng Senado at puro mga G-A-G-O at kung anu-anong mga salita ang andun. Hindi naman maganda yun.

DAVILA: So yesterday's speech will be stricken off the record?

FGE: Not the entire speech. Only the unparliamentary portions, unless the whole speech is unparliamentary. But I don't think so. May maiiwan namang mga was, where, is...

DAVILA: (Laughs) No, I'm curious. Can a senator be punished? Is there any kind of penalty among yourselves?

FGE: Yes. There can be subjected to disciplinary proceedings through the Committee on Ethics. Penalties can range anywhere from reprimand to suspension to explusion depending on the committee on ethics. But in the case of suspension and explusion, you would need a 2/3 vote.

DAVILA: But who would have the courage to actually, I mean, like, on the committee on ethics, to go through Sen. Miriam's speech?

FGE: Hindi naman lahat ng senador o, hindi ko naman pwedeng sabihin na may senador na takot sa kapwa n'ya senador. Kung kailangang gawin, gagawin yun. Kaya lang Karen, 'ni hindi pa organisado ang Committee on Ethics. We are yet to elect a chiarman of the Committee on Ethics.

DAVILA: Alright, now, is there a hope for the two to be friends again?

FGE: I have no idea. Matanda na sila, alam na nila kung ang dapat at hindi nila dapat gawin. Hindi para samin, lalo na kaming mas bata, na pagsabihan sila kugn ano yung mga dapat at hindi nila dapat gawin at sabihin.

DAVILA: Oo. Now, you were saying that it's not even right for a senator to turn her back on the flag?

FGE: May parliamentary proceedings na tradition at practices na ganun dahil, kaya nga, para maiwasan yung mga pagaaway. Dapat hindi ka direktang nakikipag-usap sa ka-debate mo. Dapat kausap po lagi yung presiding officer. Kaya diba kami, palagi dapat, Mr. President. Palaging third person. 'The gentleman is correct. The lady is correct.' You never say, 'You are wrong, you are correct.' Dahil sa karanasan ng mga Kongreso noon, dun nagsisimula ang away, barilan at patayan. Kaya nga sa United Kingdom Congress, sa parliament nila, nag-aargue sila across the table. If you notice, that table ha, a long (inaudible). It's called, yung sukat ng lamesang yun ay sword's length.

DAVILA: Okay.

FGE: Kasi yung mga panahon ng mga knight, pag nag-away sila't nagkainitan ng ulo, bumunot man ng espada yung isang mambabatas nila, hindi kayang saksakin o maabot yung ka-debate n'ya. So there are rules with respect to parliamentary proceeding. That's why we always use the third person.

DAVILA: No. But this is the light moment before we get to the budget which is gonna take the bulk of our discussion. But you have Sen. Enrile playing Bejeweled. I mean, that was also... I mean, people took photos. It was seen on television.

FGE: Wala yatang parliamentary tradition o practice tungkol dyan dahil bagong imbento lang ang iPad e. Ngayon pa lamang siguro, kung saka-sakali maglalagay ng rule na bawala maglaro ng game sa loob, kung saka-sakali. But I prefer that Karen kesa naman inaway pa n'ya, dinagdagan pa at pinahaba pa yung kwento at may part three pa. Tama na siguro yun.

DAVILA: Okay, alright. Now, well, you have most of the Filipinos listening to that privilege speech on radio and watching ANC and what did not go live was the supplemental budget, you see. Unfortunately. Right after that, there was a sesssion on the supplemental budget.

FGE: Yes, and we passed it on second and third reading, a supplemental budget amounting to 13.6 billion, supposedly to be spent on the victims of the recent calamities.

DAVILA: Okay, yesterday, I had Prof. Diokno here on the show and he had said...

FGE: Yes, I saw him.

DAVILA: You did. Okay. Now, first part, is it actually legal to use the 14.6 billion pesos of unused PDAF, given that the Supreme Court had said it was unconstitutional to begin with?

FGE: I disagree with Secretary, former Sec. Diokno. Number one, the Supreme Court did not declare the money illegal and uncontitutional. The Supreme Court declared the item called PDAF unconstitutional. In fact, the Supreme Court said that these moneys, these funds should now be transferred to the general fund. And given that it's in the general fund, the National Treasurer certified the availability of 14.6 billion cash. That now instigated the filing of the supplemental budget because there is that extra available cash, not from PDAF, from the general fund that we can allocate.

DAVILA: Now, it's already the end of the year. Usually, when you allocate a supplemental budget, it ends as the year ends.

FGE: Nilagay namin supplemental budget. If they see it, yung validity ng supplemental budget will extend until December 31, 2014. Narinig ko din sa...

DAVILA: So you extended for a year?

FGE: Yes, narinig ko din sinabi n'ya na hinidn naman daw nagmamadali. Actually nagmamadali, because Karen, there's a notice of availability of cash. As you know, we have a one-fund policy. Meaning, lahat ng cash ng gobyerno sama-sama yan. Maraming gastusin ang gobyerno, may mauunang maniningil para sa sweldo, may maniningil para sa ganitong obligasyon. Ito available na yung cash. If we delay the approval of the supplemental budget for the relief operations and relief purposes, yung cash magagamit sa iba.

DAVILA: I see.

FGE: Parang yung AFP Modernization, naalala mo? May cash nun, hindi nagamit agad, so yung cash may account pero yung cash, nagamit na sa iba. Ito, may cash, ready, available. That's why we were in a hurry in passing it. So that we can make the most out of that cash to be spend for this.

DAVILA: Okay alright, another comment you have made is why make a budget when there is no specific plan yet?

FGE: Agree, but we are still in relief Karen, the rehabilitation, reconstruction...

DAVILA: What do you mean P14.6-billion is relief?

FGE: Yes, Karen.

DAVILA: Relief, P14.6-B?

FGE: Immediate relief. I'll give an example, P380 ang cost ng isang supot na binibigay ng DSWD. Ang laman nun apat na sardinas, apat na karne norte...

DAVILA: Walo?

FGE: Apat lang, apat na sardinas, apat na karne norte, anim na kilong bigas, walong instant noodles at kape, 'yun ang laman. The cost is P380, landed in Manila, not yet in the ravaged areas. Ang affected families natin ay 870,000 people. If you multiply it, good for 2 days 'yun, good for 2 days for 5 people daw. If you multiply it Karen, we will be spending about P4.5-B to give enough relief packs for all of these displace persons for one month.

DAVILA: Really?

FGE: This will now taper off and you have to factor it na may ilang nagbibigay rin, may private, foreign...

DAVILA: But one month you are counting for December? Because the DSWD said relief ends December.

FGE: Actually that's not true, we asked them that. Relief will on going and it will be tapering off, pakonti ng pakonti as the lives of the family affected are normalize.

DAVILA: Okay.

FGE: Pablo, they did relief for Pablo 10 months. Although the number was tapering off. So from a high number of 850, siguro like in Yolanda by January bababa yan by I don't know how many but by 600 or 500 as the people's lives was normalize. Isi-shift kasi nila yan sa cash for work. Isi-shift nila yan sa emergency employment para magsimula na rin magnormalize yung buhay ng ating kababayan.

DAVILA: So what you are saying actually this is new information as to where the P 14.6B will go, everybody says it's for rehab, its specifically...

FGE: Not yet.

DAVILA: It's only for relief for how many months?

FGE: Actually one month palang 'yung kinakailangang 'yun. One is relief, two ang paggagastusan nila through calamity fund will be...

DAVILA: P14.6 muna ito ah.

FGE: The beginning of rehabilitation which is seeds and seedlings, it takes 5-7 years Karen bago magbunga ang coconut tree. So kung hindi pa natin sisimulan yan ngayon atleast nakaabante tayo ng ilang buwan. Some families in order to normalize their lives already are asking for fishing boat, bangka, fishing paraphernalia. In fact may ilang lugar dun mas gusto nila wag na muna yung bahay namin, we can survive, amin na yung bangka, amin na yung nbet para magsimula nang magnormal ang buhay namin.

DAVILA: Okay. Alright, I want you to describe this detail I'll read to you because you had said, you want to make sure that the P14.6B supplemental budget was itemized because I mean the Supreme Court had said that everything should be itemized, correct?

FGE: Not exactly, they just discussed two funds, the Presidential Social Fund and the Malampaya Fund. In a decision they said that this lump sum amount should be spend for the purpose that they were designed and intended for.

DAVILA: Okay.

FGE: Sa Malampaya, energy related. Social fund hindi pwede sa infrastructure. Yun lang.

DAVILA: Alright. Now the P14.6B supplemental fund will be used for two things you have said, Quick Response Funds, for the agencies and Presidential Calamity Fund...

FGE: Only for DSWD, Quick Response Fund for DSWD P3.4-b.

DAVILA: That's relief?

FGE: That's relief.

DAVILA: So the P14.6-b you have P3.4-b for relief, DSWD. Okay. Now you have Department of Agriculture, repair of irrigation system.

FGE: Kasama 'yun, kasama yung livestock, kasama yung seedling, kasama yung bangka and fishing net.

DAVILA: How much is that?

FGE: They placed indicative amounts Karen kasi hindi pa nila alam kung magkano. There's a figure for LWUA para sa level 3 water systems, there's also amount allocated for NHA, about P5.5-b para...

DAVILA: NHA?

FGE: Yes NHA. Meron ding provision sa Landbank of the Philippines, again these are indicative figures P1.8-b for guaranteeing of loans in order to start the businesses there and for micro finance.

DAVILA: Now in this P14.6-b there's also an allotment for rehabilitation of universities and school building?

FGE: Not yet. That will be in reconstruction fund next year.

DAVILA: Next year. Alright, what about the repair of DOH hospitals, purchase of health equipment?

FGE: I asked that, the equipment will come in reconstruction fund next year, the repair I believe is ongoing right now, chargeable in available savings, calamity funds of the president and executive for 2013.

DAVILA: Okay what about the repair and rehabilitation of airport and ports?

FGE: Kasama 'yun sa budget ngayon ng DOTC. Pero hindi pa makukumpleto lahat, in fact for the first time we institutionalize a QRF fund, Quick Response Fund for DOTC and DOH for 2014.

DAVILA: Okay now, are you allowed to make a Quick Response Fund under the law?

FGE: Yes of course. It's part of line item of the budget and we placed that in the 2014 budget.

DAVILA: Now Prof. Diokno had also mentioned, did Congress initiate the use of P14.6-b and use PDAF funds as supplemental budget? Or did the president initiate it?

FGE: Again to begin with, this is not PDAF anymore, it has been struck down, the item has been struck down but the money, we cannot declare unconstitutional, the item yes. This was initiated I believe by both Congress and Executive I think a meeting was held between the leaders of Congress, the Speaker and Senate President it was published in newspaper together with Sec. Abad. They discussed this possibility remember the executive cannot file a bill, the Senate cannot, it should be the House should file a bill.

DAVILA: Okay. Given that 14.6B has.....

FGE: ...by in two weeks time, it'll be ready. It'll be legal to spend that money already.

DAVILA: So, it turns out, 'yung sinabi ni Sec. Soliman, that by January, the NHA, will be giving 5,000 worth or so of parang housing equipment for you to build, is coming from this budget? FGE: Is coming from this budget. DAVILA: Ito 'yun?

FGE: Although may P7 billion na reserved or trust fund ang NHA, na tina-tap na rin nila ngayon to fund this purpose. I think, it's P10,000 per....

DAVILA: Per person?

FGE: Actually, depende, kung totally damaged or partially damaged.

DAVILA: Okay. Now, what about the DOLE? Because there will be a cash for work that will start by January too?

FGE: Cash for work will be DSWD. Emergency employment will be DOLE.

DAVILA: Okay, so, is it coming from this budget?

FGE: Coming from... No. I think, it will be coming from the rehab and reconstruction budget come January. Again, relief muna sila ngayon.

DAVILA: Oo, alright, so, the clarification we have P14.6B supplemental fund is mostly for relief. And then, there is a P100 billion fund that supposed to be alloted for rehabilitation in the 2014 budget. Is that correct?

FGE: P20 billion in the programmed, meaning manggagaling 'yun Karen sa revenues natin, and P80 billion in the unprogrammed, meaning manggagaling sa savings, sa borrowings at sa reallignments kung saka-sakali mula sa programmed amounts. Now people were thinking...

DAVILA: What do you mean? Oo, by go ahead...

FGE: People might think and say, "Wala palang pera 'yan, edi drawing lang 'yan?" Hindi, kasi in pledging session ang World Bank. Hindi pa nga natatapos, nakaka-$1 billion na sila.

DAVILA: That's (inaudible) here?

FGE: That's nearly half of the P80 billion already.

DAVILA: Yeah, and the ADB, there's P500 million also in concessional loans.

FGE: Yes, that's about P20 billion also, nakaka-64 ka na, kulang mo na lang 16. So, there's money to fund the rehabilitation fund.

DAVILA: Okay, now Sen. Chiz, Prof. Diokno also said, why borrow from the World Bank and let's say, from the ADB. At some point, when you do that, when you borrow from foreign lenders, it will cost, I mean you have the peso going up, exporters will be affected, OFWs at some point, why not borrow from local banks which are verily quick?

FGE: Well, two things Karen. That's the decision of the Executive, number two, you have to undestand we have to bring in new money. Kung parehong pera lang na umikot sa Pilipinas, parehong goods lang na umiikot sa Pilipinas ang gagastusin natin para sa reconstruction at rehabilitation, maaapektuhan 'yung ibang parte ng bansa, ibang parte ng ekonomiya na hindi naman tinamaan ng bagyo o ng earthquake. So, it's ideal that we bring in new money, new inventory, new stocks, para hindi maapektuhan 'yung dati nating pangangailangan. Halimbawa, sa yero, isipin mo, humigit kumulang 1 milyong bahay ang nasira ng Yolanda. 'Yung kaya nating i-produce na yero ngayon para sa pangangailangan ng Yolanda ay 30% lamang.

DAVILA: Where do we get the rest?

FGE: You import it or you increase the manufacturing capability here, which presents an opportunity for us. Kaysa naman abalahin mo 'yung nagsu-supply ng yero sa ibang parte ng bansa, tataas ang presyo, 'yun ang inflationary. Ngayon, kapag 'yung pera naman ng World Bank ginamit mo rin para dyan, ipahiram mo, ipa-guarantee mo, etc., edi 'yung pagpapahiram dito sa ibang lugar na hindi apektado, maaapektuhan. Mas kaunti ang perang mapapahiram sa kanila, mas posible pa'ng tumaas nga 'yung interes sa pagpapahiram sa labas ng areas na mga apektado. So, bakit natin gagawin 'yun?

DAVILA: Actually, you can start a small manufacturing business coming from this tragedy?

FGE: Coming from this tragedy and be able to build a manufacturing backbone, in so far as the various aspects of housing is concerned. Ang Singapore ganyan nagsimula. Sa mass housing sinimulan ang kanilang kapasidad at kapabilidad na palakihin at palaguin ang ekonomiya nila.

DAVILA: Oo, pero on another note, medyo lang ano ito, should we still be using yero? Because, in many other, like Indonesia, they don't use G.I. sheets coming from the tsunami, wherein, alam mo, ang malungkot, liliparin na makakapatay pa.

FGE: Sa pagkakaalam ko, Amerikano ang nagturo sa atin gumamit ng yero dahil steel-based 'yung kanilang mga industriya noon. In the early 1900, kung mapapansin mo, panahon ng mga Kastila, wala naman yero dito. Ang gamit natin tisa na mas matibay at mas bagay dito sa ating climate condition. That is being looked into by the DPWH already in so far as the design is concerned. 'Yung yero, ginagamit lang yata muna sa temporary housing. Tatlo kasi 'yun Karen. Emergency housing or settlement, temporary settlement or housing and permanent. 'Yung permanent 'yun siguro 'yung dapat tama ang design, pero 'yung emergency at temporary, 'yung yero is far better than a tent, right now, because that is needed not only to provide initial shelter, but also to prevent the spread or the increase of incidents of disease in those areas.

DAVILA: Now, on the P100 billion rehabilitation fund for 2014, where will this go through? I mean you have the President appointing Sen. Ping Lacson as the new rehabilitation czar, what does that mean? Is it, my question, is it for coordination? Does foreign aid come through him? Does foreign money come through him? Does he ensure transparency? Does he look over the implementing agencies? How does this go?

FGE: I think, all of those but we haven't seen the EO yet. For sure, the money that we are appropriating will go through the line agencies. Hindi naman kasi implementing agency 'yung czar, posisyon na czar.

DAVILA: Oo, so, he will not sign anything? FGE: He will not sign, I don't know, I haven't seen the EO, but of hand, without him being authorized, he cannot sign a contract. He cannot bid out projects. It will be through the line agencies. It'll be mostly based on what I understand from media reports, coordinative, overseeing and ensuring that the moneys are used properly and the projects are implemented at the fastest possible time.

DAVILA: Do we need a rehabilitation czar?

FGE: I think we need all the help we can get. I think Senator Lacson has a lot to offer to this country after he graduated as a member of the Senate in this or in any other capacity.

DAVILA: Would he be better in Customs?

FGE: Again, in this or any other capacity (laughs).

DAVILA: Alright, one thing is clear is that the rehab czar should not in other words, sign contracts, release funding, wala 'yun?

FGE: Not should not, but right now he cannot unless he is authorized....

DAVILA: But by law, can he?

FGE: I was about to say that, unless he is authorized by law. Because the office will be created. Now the President has on-going power to re-organize government under the administrative code EO2902, delegated power given to him by Congress. But again, I have to wait for the EO and comment on it afterwards. But right now, as things stand, mere appointment to that position without any specific powers and designation of his responsibilities, the funds will be coursed through the line in the agencies.

DAVILA: Alright, when it comes to 2014 budget, I mean any other problems you are seeing with that? Another questions that Professor Diokno brought, why was not start just with 2014 January if it's completely clean.

FGE: The rehabilitation, yes, whenever a calamity hits us, you have several stages, search and rescue will come in, followed by relief, followed by... mago-overlap ang reconstruction at rehabilitation. And for me, sa panahon ng kalamidad, in case of emergency, hindi na siguro pinagdedebatihan ng tatlong-linggo o isang buwan. It may not matter to him but it does matter to a lot of victims and to the families who where there. Whether the help gets to them the day after we announce it, at least it is something that they can hold on to that will be coming soon.

DAVILA: Okay, other than that, the senators also set aside P20B for disaster, preparation and calamity response fund, is this correct or different?

FGE: P12B would be the savings that will be generated in the virtue of the extention of the life of 2014 budget until December 31, 2013. That the joint resolution we passed.

DAVILA: Pero hindi ito yung P14.6B, iba pa 'yun?

FGE: Iba, iba pa 'yun, Karen.

DAVILA: So, who spends the P12B then?

FGE: The P12B will be in accordance with the use of savings of the government. Hindi DAP, use of savings, para mare-align at magamit sa calamity expenditures nang pamahalaan. Eto yung sinasabi ko sa iyo na health nagastusan naman na, pangangailangan sa gamot na, nagastusan na. Yung initial part ng relief bago pa man naaprubahan 'yun, dun na rin ginagastos 'yun. But to be sure of all these things, Karen, we included in the P12B that will be made valid by the joint resolution. The P14.6B that we provided, supplemental budget and the P100B, we provided transparency, reportorial and accountability provisions. Namely...

DAVILA: I am gonna ask you that, but we will go to a quick break. When we return, we are gonna ask Senator Chiz Escudero, how can they ensure transaparency, check and balance in the 2014 budget. What will change? Hotcopy will be right back, tweet your questions.

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DAVILA: Alright, we are back and we are talking to Senate Finance Committee Chairman Senator Francis "Chiz" Escudero. Let's go back to that earlier report on that SARO connecting into 2014 transparency with the budget. First, how can you ensure that the 2014 budget is more transparent?

FGE: Unlike the previous Karen, let's begin the bicameral committee conference will be in public. As I said it will be on December 10 at 9am in the Senate.

DAVILA: Bakit dati?

FGE: Apparently, hindi. Hindi naman kasi ako miyembro ng bicam noon. Ngayon lang ako nag-chairman ng bicam for the first time. We will make it in public. As far as my understanding goes, dapat public ang mga hearing unles nasa executive session kami.

DAVILA: Kasi before ang mga amendments o milagro, nangyayari duon.

FGE: I talked to my counterpart in the House, Congressman Ungab, all amendments will be on paper or said verbally in the said committee hearing. Those on paper will be made in public and media will be given a copy para malaman kaninong nanggaling. Sa House ba o sa Senate. Now, within the House or Senate, we will have records kung sinong partikular na senador ang nagpropose nun. On the 2014 budget, we have inserted new provisions, such as 1., accountability to assets. Meaning responsible sa pondo; 2. Reportorial requirements to Congress and to COA.

DAVILA: Okay, let's talk about accountability clauses. It didn't come up before?

FGE: Halimbawa, funds na binibigay sa NGO. Funds, nagpapa-implement sa iba.

DAVILA: Who is accountable for that?

FGE: Fool me once, shame on you, fool me twice, shame on me na 'yun, baka maloko tayo muli. Kinlaro namin, accountable yung agency na nagbigay ng pondo doon sa, remember walang pork barrel ngayon. So wala ng intervention ng legislator, according dun sa Supreme Court decision. If the legislator intervenes, that often by itself is illegal. So, we cannot provide for that in the budget anymore. Yung participation ng legislator is like unaccountable kasi he is not allowed to participate anymore.

DAVILA: So, let's say mayroon kang gustong pondohan in the 2014 budget, you have a suggestion, you are not accountable for that fund anymore?

FGE: May gusto akong pondohan, bawal na 'yun Karen. 'Yung i-identify ko yung NGO? Bawal na 'yun.

DAVILA: Pero under the law is a university or its something like that.

FGE: It's in the budget process. Sabi nga ng Supreme Court, post-enactment ang bawal, pre-enactment, let's say budget, gustong magpalagay ng pondo sa PGH, pwede 'yun. Hindi ka-accountable doon dahil may request kang hawak, nilagay mo sa budget. Hindi ka naman magi-implement, wala kang pakialam sa implementaiton. Ang pangalawa, nilagay din namin doon, pagbibigay ng pondo sa mga NGOs, sumunod dapat sa COA at GPPB, procurement policy board rules. Maliwanag naman kasi 'yun. Dapat sundin yung bidding, yung procurement law. Alam mo ba Karen, yung binibid-out yan, hindi mo puwedeng, as a rule, dapat bini-bid out mo yung project among the NGOs. Let them bid among the NGOs and let them bid. Let them bid the lowest amount. And then...

DAVILA: The problem with bidding in some instances is it takes time.

FGE: Yes, but as a rule, that should be followed. Now, if it's an emergency purchase or acquisition, pwedeng negotiated, pwedeng emergency purchase. Pero kung negotiated, ibang rules ang papasok. Biglang kailangan mo ng bond. Biglang kailangan mo ng insurance.

DAVILA: Oo, dapat may perang irelease.

FGE: Oo kasi kung may bid-out, hindi kailangan yun. Pero pag hindi binid-out at negotiated, kailangan may bond to answer for the funds if in case it would be misused.

DAVILA: Ba't by... Oh yeah, all negotiated deals, parang walang bond ang mga kumpanyang binibigay?

FGE: Yun nga yung mali because may COA rules states in so far as NGOs are concerned or dealings with NGOs are concerned, nilagay namin 'yung strict compliance tungkol dun sa COA-NGPB rules and regulations on the Procurement Law.

DAVILA: Okay. Very quick question, will these rules be applied during calamities like case in point? Right now, there is massive housing needed. The NHA clearly cannot do it alone. You have the DSWD already working I think with Habitat for Humanity and Gawad Kalinga. How does that go given your new rules?

FGE: Tatlo ang klase ng procurement, Karen.

DAVILA: Paano 'yun?

FGE: Public bidding, negotiated purchase, emergency purchase. Papasok yang emergency purchase, magkikick-in yang emergency purchase procedure kapagka may kalamidad.

DAVILA: A may emergency procedures?

FGE: Tatlo yun Karen...

DAVILA: Oo.

FGE: We're just... kasi purchase ang tawag dun.

DAVILA: Because there is also an NGO which is legitimate and all they do are classrooms.

FGE: Okay lang.

DAVILA: Ganun din.

FGE: Pero ang ginagawa kasi nila, nakalagay din sa COA rules yun, kapagka negotiated puchase, by tranche ang release. Hindi pwedeng buo-buo. Kunyari nakita mo kay Napoles, 15% liquidate before we release the remaining 15%.

DAVILA: So 'yun ang bagong rule?

FGE:Actually matagal nang rule yun, hindi lang sinusunod. That's why we provided strict compliance in so far as that is concerned.

DAVILA: Okay. Now with strict compliance, it's the agency now who is accountable?

FGE: Yes. Again, hindi ako lumulusot dito Karen ha? Dahil nga bawal nang makialam ang congressman at senador. Why would I provide for rules that are something prohibited? Mere participation, mere recommendation is prohibited already.

DAVILA: Oo, okay. So ang senador hindi na pwedeng mamili ng NGO?

FGE: Ni hindi pwedeng makialam post-enactment o magrekomenda man lang, Karen. In fact talo pa siya ng konsehal o barangay captain o mayor. Ang konsehal, kapitan at mayor, pwedeng magrekomenda ng NGO,. Ang senador hindi. Ang congressman, hindi.

DAVILA: So for the record as we speak, it's not yet illegal for government funds to be given to an NGO?

FGE: No, it's not.

DAVILA: It is not.

FGE: We also require in so far as NGOs are concerned, dapat i-post ng DSWD ang website, updated on a daily basis, lahat ng accredited NGOs. Kasi baka mamaya Karen, pinost kung sabihin nating monthly o quarterly, accredited sila last month o last quarter, this quarter hindi na, nakakatanggap pa rin. So it should be a regular update to be made by the DSWD kung alin-alin lang ba 'yung accredited NGOs in their website.

DAVILA: Actually it escapes me right now but legitimate NGOs say technically 'yun ang to be accredited by this one institution...

FGE: There's an office within the DSWD. In fact, not only NGOs Karen even public solicitation needs to be registered with the DSWD. Kunyari, maglalagay ka ng kahon sa opisina mo, donate to Yolanda victims, that also requires us to follow certain rules. If you're soliciting within the city, we need a permit from the city, within the region, the regional office of the DSWD, kung nationwide you need a [ermission from the DSWD central.

DAVILA: Okay, alright. Now, is there a penalty included in the new transparency laws?

FGE: We did. We provided that the maximum should be imposed, but not on everything Karen, on certain funds on the misused of savings, misused of lump-sum amounts, and misused of calamity-related funds. We said that the maximum penalty should be imposed under the Revised Penal Code, the Anti -Graft and Corrupt Practices Act and the Plunder Law.

DAVILA: Ano yun? Yung penalty?

FGE: Depende sa Revised Penal Code kung ano 'yung ginawa mo, malversation, technical malversation ba o bribery. Depende kung ano 'yung ginawa mo. But if you misused the funds in any way, maximum 'yung penalty na pino-provide namin.

DAVILA: So at this point, lump sums... the 2014 will have lump sums?

FGE: I will go there.

DAVILA: Yes. Lump sums are very controversial.

FGE: Yes, it will. Principally Karen because like calamity finds, we don't know what will hit us and what we will be needing. So definitely it has to be a lump sum. But we required that all of these lump sums will be subject to Section 35, again it's in the law, of the Revised Administrative Code. It basically says "agency availing od lump-sum funds should submit an early budget itemizing the utilization of that lump-sum fund. So 'yung mga lump sum funds, hindi siya automatically released. Ito 'yung maiisyuhan pa ng mga SARO para makita mo 'yung itemization ng lump-sums which we required that this be submitted to Congress, to COA and posted in their websites.

DAVILA: Now, how do you prevent fake SAROs in the 2014 budget? I mean, you just saw that apparently, there were so many fake SAROs already with the originals still pending for signature. How do we prevent that? It seems such a primitive way to actually steal money from a government system.

FGE: Number one, they did not steal the money from the government, Karen. They took advantage of the private person's greed. Pinakitaan siya ng pekeng SARO, 'yung contractor o mayor o governor, at nag-advance sila doon sa nagbigay sa kanila ng SARO. No funds were actually misused from these fake SAROs...

DAVILA: From the government?

FGE: Fake nga, so hindi babayaran ng gobyerno 'yun. Ang nagbayad o naglabas ng perang 'yan, yung contractor o 'yung mayor o governor na akala totoo yun, binigyan na 'yung nagbigay sa kanya ng SARO.

DAVILA: Oo kasi advanced yun?

FGE: Advanced yun.

DAVILA: Okay.

FGE: Secondly, it would be minimized, at least, in the 2014 because about 80-84% of the national budget for 2014 will no longer require a SARO.

DAVILA: Really?

FGE: 'Yung naka-itemize doon sa budget will serve as the released documents already. So it will also facilitate the implementation of projects. 'Di ba, papel pa rin yan. Iniisyu ng DBM so may mga matatagalan, may mga hindi. May papasok pang korupsyon dahil palakasan kung kaninong SARO ang unang lalabas at kung kanino ang mahuhuli. Ito kapagka naka-itemized sa budget...

DAVILA: Oo, itemized na kasi.

FGE: ...yun ang release document. Agencies are authorized to bid them out already.

DAVILA: A, really? So you've come in a way that you've cut one step. That's the good part. You've cut the SARO step.

FGE: The Executive Branch, not us, authorized the agencies with line item allocation to begin the bidding process last November.

DAVILA: To be specific, let's say it's the DPWH. It's the bridge in Bohol. Something like that. That's itemized?

FGE: Yes.

DAVILA: Pwede ganun.

FGE: Hindi na kailangan ng SARO kundi ilalagay yun sa GAA. And a step further Karen. Kung naka-itemized na sya sa DPWH budget, the DPWH already began the procedures last November, short of award because they cannot award the contract yet. Walang pang-pondong pera at appropriation yun e. But short of award. They were able to save at least one and a half months. So by January of 2014, all of these line item projects will hit the ground running para makaabot tayo to the end of the summer months. Yung lahat ng construction, you'll be able to take advantage of the summer months.

DAVILA: Ok. At least that's good news. You've gone one step or two steps to get the red tape out. We'll take another short break. When we come back, our last part of our interview with Senator Chiz Escudero. We'll be right back.

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DAVILA: Alright, welcome back. With us is Senator Francis Escudero. On a quick note, it has so much interest to let people be involved in the budget. Because what happens there is when they're not interested, then they find out insertions after, mistakes after.

FGE: Well yes Karen. Ako Hindi ako interesado dun. I did not take part until I became chairperson of the Committee on Finance, handling the budget. I was concerned with policy, with issues involving the agency but not really the amounts. Now, napilitan kaming ibalanse at alamin yung amounts because at the end of the day, governance is about one thing - allocating scarce resources. If you're able to do that, you can say that we have governed properly.

DAVILA: Now, we just have two minutes to go. How much will the 2014 budget will be?

FGE: 2.268 trillion minus 3.2 billion so that's approximately 2.27 and 7 trillion pesos.

DAVILA: And how much will be borrowed?

FGE: Ang projected borrowings, assuming the revenue targets are met, 266 billion pesos.

DAVILA: Okay. So most of what you're talking about is maybe less than 10% is borrowed?

FGE: Yes. Karamihan dun ay manggagaling sa koleksyons ng BIR. Ang projected collections ng BIR is about 1.5 trillion next year. It's a challenge for the BIR. Ngayong taon lang sila nag-exceed ng one trillion. 400 billion of that will be coming from the Bureau of Customs. The remaining balance, minus the deficit, will be coming from non-tax revenues, such as BTR revenues, treasury revenues.

DAVILA: Can you imagine the stress and the burden on BIR Commissioner Kim Henares. You have 1.5 trillion of the budget coming from the BIR. One quick note of the Customs. Your reaction that there's an OIC and it's Undersecretary of Finance. Ruffy Biazon, of course, is...

FGE: Well, hopefully, mas maganda at maayos yung pagtakbo sana.

DAVILA: But wait, are you satisfied with the performance of Biazon?

FGE: I don't think he ever met the targets. I mean he's a nice guy. He is a friend of mine from the House of Representatives but performance-wise, I don't think Customs ever met any of their targets. Nothing really changed since the president sat. Yung mga kwento na nawala yung lagayan dyan o hindi, malinis na ba o madumi ba, nothing really changed. And it's one of the forefront agencies. That could be a showcase na malinis ang gobyerno, wala nang lagayan dito. I did not feel that really.

DAVILA: Alright. Last words. Talk about the Yolanda rehab, the budget on that.

FGE: A hundred billion will be allocated next year. Naka-allocate, hindi lang sa Yolanda. All the previous calamities and disasters...

DAVILA: Including Zamboanga?

FGE: Including Zamboanga. Hanggang ngayon, hindi pa naman na-aaddress. Hindi lang itong Yolanda, pati earthquake, Santi, Zamboanga siege.

DAVILA: Lahat yun?

FGE: Lahat yun. Lahat yun kasama dito sa 14.6 billion. Even wider. Pablo, Sendong, Odet, kasama dun sa 14.6 billion na inaprubahan namin kagabi.

DAVILA: Alright, on that note Senator Chiz Escudero, thank you for coming. I have to say this, I learned a lot from you today about the budget. That's Headstart today. I'm Karen Davila.