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House leader wants

cash-based budgeting
totally scrapped
The chalrperson of the House Committee on Appropriations yes-
terday demanded the total scrapping of the cash-based budgeting
system, saying that its implementation would institutionalize cor-
ruption in the Department of Public Works and Highways.
Camarines Sur Rep. Rolando "Nonoy" Andaya Jr. cautioned that
the supposed insistence of Budget Secretary Benjamin Diokno to
implement the cash-based budgeting system under the proposed
2019 F3.757-trillion national budget would further breed and
worsen corruption.
"Sa halip na labanan ang korupsiyon, lalong titindi at lalaganap
Ito dahil sa cash-based budgeting system ni Secretary Diokno. This
will institutionalize corruption in the DPWH," Andaya said.
"And who will benefit? Srnall ill-equipped suppliers and contrac-
tors just like Aremar Construction, which is partly-owned by Secre-
tary Diokno's son-in-law," the former Secretary of the Department
of Budget and Management added.
Citing the letter of former Public Works Secretary Babes Sing-
son dated Jan.25,2019 to the investigating panel, cash-based
budgeting system will only oncourage corruption in government.
contracts.
'tDuring my term, I purposely package construction contracts
above Fl50 million so that DPWH could attract qualified contractors
who would be required to provide proper equipment considering
that their contracts are big enough to warrant investing ih good
equipment. That is why we now see many ofthe contractors with
concrete or asphalt pavers and invested in appropriate construction
equipment," Singson said"
"However, because of the one-year cash budgeting, contracts
will again tend to be less than F50 million which will not entice the
'qualified
well-equipped.contractors because of the small contracts.
I belleye this policy of one-year cash budgeting will only be more
prone to corruption, result to.poor qualiw national infra projects,
engaging small ill-equipped suppliers and contractors, or just end
up being subcontracted and will increase the cost of doing infra
projects," the former DPWH Secretary pointed out.
Andaya said Diokno should respect Congress's decision to adopt
the present obligation-based budgeting system in which the govern-
ment can spread out the appropriations across two years to enable
projects' completion. "I find it disturbing that up to this point in
time, Secretary Ben Diokno has no idea on the amount of DBM pay-
ables from 2018. If the DBM Secretary remains clueless on the total
amount of governmentt debt to contractors and suppliers, then we
are in deep trouble," he said. (Charissa L, Atienza)

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