Ombudsman finds ex-Budget chief Abad liable over DAP

MANILA, Philippines (Updated 8 p.m.) – The Office of the Ombudsman has indicted former Budget Secretary Florencio “Butch” Abad over the allegedly unlawful implementation of the Disbursement Acceleration Program.

Ombudsman Conchita Carpio Morales found probable cause to charge Abad with violation of Article 239, or the Usurpation of Legislative Powers, of the Revised Penal Code after he allegedly unlawfully issued National Budget Circular (NBC) No. 541  carrying out the implementation of DAP involving P72 billion.

The NBC No. 541 authorized the withdrawal of unobligated allotments of agencies with low levels of obligations as of June 30, 2012.

The ombudsman ruled that Abad was guilty of Simple Misconduct and ordered him suspended for three months. Since Abad stepped down at the end of President Benigno Aquino III's term, the penalty is convertible to a fine equivalent to his salary for three months.

Based on the investigation of the ombudsman, Abad unlawfully intruded on the powers of Congress by effectively modifying the provisions on savings in the General Appropriations Act of 2012  when he issued NBC No. 541.

“NBC No. 541 provided the principal bases for the withdrawal of unobligated allotments which were declared as savings and used to fund PAPs (programs, activities and projects) under the DAP.   The issuance of this circular is an act of usurpation. This is contrary to law,” Morales said.

In 2014, the Supreme Court declared unconstitutional the following acts committed in pursuance of the DAP:

• Withdrawal of unobligated allotments from the implementing agencies; and the declaration of the withdrawn unobligated allotments and unreleased appropriations as savings prior to the end of the fiscal year without complying with the statutory definition of savings contained in the GAA; 
• The cross-border transfers of the savings of the Executive to augment the appropriations of other offices outside the executive.

The Article 239 of the Revised Penal Code also stated that the penalties of "prision correccional" in its minimum period, temporary special disqualification, shall be imposed upon an executive or judicial officer who shall intrude upon the powers of the legislative branch of government, either by making general rules or regulations beyond the scope of his authority, or by attempting to repeal a law or suspending the execution thereof.

DAP cases against Abad stemmed from the complaint filed by Bayan Muna Rep. Carlos Isagani Zarate, Bagong Alyansang Makabayan secretary-genral Renato Reyes, Benjamin Valbuena, Dante LA Jimenez, Mae Paner, Antonio Flores, Gloria Arellano and Bonifacio Carmona, Jr.

In an official statement, Abad said he respects the ombudsman's decision. 

In June 2016,  President Benigno “Noynoy” Aquino III and Abad said they are ready for criminal charges that might be filed against them in connection with the controversial DAP.

Abad said he and Aquino, who appointed him to the Cabinet post, analyzed DAP to its “tiniest detail.” He explained that there was no bad faith on their part in undertaking the economic stimulus program despite SC ruling that four practices under it were unconstitutional.

“We are prepared for any case arising out of it,” Abad previously said in a television interview.

 “The Supreme Court itself declared that DAP benefited the economy and the country. It accelerated economic growth in 2012 and 2013,”  he added. — Rosette Adel