He has come up with a proposal to solve the government’s cash and budget deficit problems: selling taxes, administrative fees and other revenues to investors in the form of securities or debt papers.
"We can exchange money forthcoming with ready money. Technology allows us to innovate ways to raise money and revolutionize the way we do finance," Jimenez said in a recent hearing of the House economic affairs committee.
The wealthiest congressman is not new to raising huge amounts of money. He is credited with having suggested to the previous administration the use of pension funds being managed by the Social Security System and the Government Service Insurance System in such big projects as the acquisition by relatively small Equitable Bank of the bigger PCIBank.
In an affidavit, MJ has claimed that he turned over to Estrada hundreds of millions of pesos in commissions from such transactions. The government had planned to use him as a witness against his friend in the plunder case the disgraced president is facing before the Sandiganbayan.
The congressman is facing extradition to the United States on fraud, tax evasion and illegal election campaign contribution charges.
The economic committee, chaired by Rep. Oscar Moreno (Lakas, Misamis Oriental), has been discussing securitization bills that would allow the government to raise money using future incomes as assets.
For instance, Speaker Jose de Venecia Jr. has proposed that the government float $1 billion worth of securities with its future share in the earnings from Malampaya gas-oil project as its collateral.
Moreno, a former banker, said he was not sure if it is wise for the government to securitize its revenues.
Explaining the concept of securitization, he said it is a scheme that allows an entity like the government or a private corporation to raise money using its receivables as assets.
He said the debt papers can either be sold at a discount or carry a market-based interest rate.
The discount or the interest constitutes the income of the buyer or investor, he said.
Elaborating on his "novel but workable" proposal, Jimenez said it "will unleash financial resources of great magnitude that could help plug the administration’s budget deficit and fund critical government projects."
Initially, he suggested that registration and license fees being collected by the Land Transportation Office, and fees for clearances from the National Bureau of Investigation be securitized.
LTO alone expects to collect P4.3 billion next year, he said.
"This expected income could be sold and securities based on this receivable issued and subscribed for, earning for the government money even before the end of 2002," he said.
However, such income should be used solely for building branch, extension or satellite offices nationwide where more people can go to and avail of government services, for which they pay fees, he said.
Thus, the state creates marketing channels, and as these channels expand, revenues and the income base also expand, he stressed.
There is another benefit: the government is able to create more jobs, he added.