Palace ready to answer lump sum case in SC

MANILA, Philippines - Malacañang said Wednesday that it is ready to answer before the Supreme Court (SC) allegations of lump sum and discretionary funds in the 2015 national budget.

"We will not hesitate to respond," Presidential Spokesperson Edwin Lacierda said in a press briefing. "We are in good sound legal footing. What (Budget Secretary) Butch Abad said publicly in media, we will defend before the courts."

On Tuesday, the SC required the Palace and Congress to comment on the petition for temporary restraining order (TRO) on certain provisions of the 2015 General Appropriations Act (GAA) and special purpose funds (SPF) filed by the Philippine Constitution Association (Philconsa) last week.

In its 30-page petition, Philconsa asked the SC to issue a TRO on the implementation of Sections 65, 70 and 73 of the 2015 GAA as well as on special provisions for SPF.

Section 65 of the GAA provides for lump sum appropriations while Section 70 defines savings as portions or balances of any unreleased appropriations in the GAA that were not obligated. Section 73, meanwhile, contains the rules on the realignment of allotment classes and reprioritization of items of appropriations.

Philconsa asked the SC to declare all three provisions as unconstitutional.

Lacierda said the lump sums in the 2015 national budget such as the contingency funds are necessary.

"Those who questioned, for instance, contingency fund, until such time that they can define to us how much it will cost per typhoon and how many typhoons will be coming in a given year in our country, it will always have to be a fund that will be parked in a place where it will answer all the concerns for disaster," he said.

"So, talagang of necessity, magkakaroon ka talaga ng ganung mga pondo at sinasabi naman ni Secretary Butch Abad iyon. Hindi naman natin ikinakailala na meron, for instance, 'yung contingency fund lalo na," Lacierda added.

Earlier, Abad washed his hands of the lump sums in the 2015 national budget, claiming that lawmakers are to blame for the allocation.

"The 2015 budget is an act of Congress. We are just implementing it," he said.