'Sffiard MONDAY FEBRUARY
Andaya exposes
ills of cash-based
spending scheme
By Rio N. Araja
HE chdirman of the
House committee
on appropriations
warned Sunday thal the
cash-based budgeting
system that Budget
Secretary B enjarnin Diokno
insists on imposing would
institutionalize corruption
and result in poor quality
national infrastructure
projects.
1"8, 2019 i
Camarines Sur Rep. Rolando Ar-
daya Jr, panel chairman" said Diokno
must abandon hjs cash-based budgeting
system under the 2019 national budget
sirrce that qould only limit appropri.r-
tions, bidding, completion of piojects
and payrnents within a shgle year
"hstead of fighting corruption- it
would only worsen and be widespread
under Secretary Dioliuo's cash-based
budgeting system. This would institu-
coruplioo ir
lJon,,rli/e tbe Dcpanrncnt
of Public Works and Highu'ays- And
who would benefit? Smdl. ill-equipped
suppliers or contractors," he said.
Andaya, a former Departnent of
Budget and Management secretary,
Nert pnge
\\ ''1P\'rst.t rJt: Xglc)'s //
'Diokno... "During my term, I PurPoselY Pack-
aged construction contracts above
Frcm AI
Pl50 million so that DPWH could at-
tract qualified contractors who would
said some DBM and DPWH emPloY-
be required to provide proper equip-
ees had told him that the total amount
ment considering that their contracts
of-unpaid conhacts for 2018 infra-
were big enough to warrant investing
structure projects soared from P44 bil-
lion in November 2018 to more than
in good equipment. That's whY we
P 100 billion al the end ofthe Year.
now see many of the contractors with
concrete or asphalt pavers and invest-
Under the present obligation-based
. ed in appropriate construction equip-
budgeting, the government could
ment," Singson told Congress.
spread out the approp ations across
"I suggest that the DBM secretaxy
two years to enable the projects to be
get a copy ofthe 2017 PIDS discussion
completed. he said. paper ofRene Santiago, a fellow at the
He also ciLed testimony liom ex-
Foundation for Economic Freedom,"
DPWH secretary Rogelio Singson that
he was against one-year cash budget-
Andaya said.
"Mr. Santiago's study on Planning
ing for capital outlays because it would
and programming ofcapital projects at
only encourage corruption in govem-
the agency level cites the bad example
ment contracts.
Singson also said such a sYs-
UK had with cash-based budgeting
To meet its one-year time conshaint,
tem would limit projects to smallFr
agencies were fotced to cluster expen-
amounts 10 gnsure Payment and com-
pletion wilhin the year. jeopardizing
ditures in the last few months of the
year," he added.
ihe quality ol the projects due to the
absence of large, qualified contractors.