MANILA, Philippines – The billions of pesos are not missing.

This is the response of the Bureau of Treasury (BTr) to calls by Senator Ralph Recto for the budget department to explain why over a hundred billion pesos from the Malampaya fund is missing.

In a statement released Wednesday, October 9, the BTr said P137.29 billion worth of royalties from the fund “remain intact” and is stored under a Special Account in the General Fund called Fund Code 151.

“Sen. Recto’s claims are unfounded and misleading. The remaining Malampaya fund balance – all amounting to P137.288 billion – is not ‘gone,’ as he says, but perfectly intact in the National Treasury,” Treasurer Rosalia de Leon said.

In a text message to Rappler, Budget Secretary Florencio Abad also said Recto was “confused” and said “there is no P130 billion missing.”

The fund comes from the Malampaya natural gas project that has been operating off the shores of Palawan for 13 years. It is the single biggest investment in the Philippines, with proceeds amounting to P170 billion over the years.

Less than P25 billion was spent during the Arroyo administration, while P15 billion has been used under President Benigno Aquino III.

On Monday, Recto told reporters the Department of Budget and Management (DBM) claimed the remaining billions of cash did not exist.

“Dapat, una, ipaliwanag, palagay ko, ng DBM – at hindi ko sinasabing kasalanan nila ito – nasaan ‘yung natitirang P130 billion na cash ng Malampaya noong mga nakaraan?” Recto said on Tuesday.

(First, I think, the DBM should explain – and I’m not saying this is their fault – where is the remaining P130 billion cash from past Malampaya proceeds.)

“Even ‘pag hindi mo ginastos ‘yan…posibleng nagagastos sa iba, hindi man lang sinasabi na galing sa Malampaya,” he said.

(Even if you’re not utilizing it, it’s possible that others are using it without disclosing that it’s from the Malampaya fund.)

The money was originally meant only for energy-related projects but Presidential Decree (PD) No. 910 issued by former President Ferdinand Marcos included any “other purpose as may be directed by the President,” opening it up to misuse.

Just last week, a plunder case was filed against Arroyo for the alleged misuse of P900 million from the fund released to the agrarian reform department.

Meanwhile, the Palace has insisted Aquino has used it only for energy-related projects despite his power to use it for other reasons. On Tuesday, Presidential Spokesperson Edwin Lacierda made a strong statement on Aquino’s use of the Malampaya Fund.

“In the Malampaya fund, there’s a provision there that gives discretion to the President to use those funds. We’ve strictly interpreted that particular provision as energy-related. So, no one, I dare say no one can question the President on how he uses the Malampaya funds. And we can stand up to any court, to any tribunal, to any court of public opinion and to tell them that the President has used the Malampaya funds judiciously,” he said.

As of 2012, the Malampaya fund had been tapped to fund projects under various agencies, including the departments of the interior, public works, agriculture, defense, finance, and health.

On Tuesday, in oral arguments at the Supreme Court, Senior Associate Justice Antonio Carpio said that the executive’s use of the Malampaya fund for purposes not specified by Congress is “unconstitutional on its face.”

The government expects royalties of up to $10 billion from Malampaya’s 20-year operations. – Rappler.com