HIGHLIGHTS: Senate hearing on DAP | July 24, 2014

MANILA, Philippines – The Philippine Senate held a hearing on Malacañang’s Disbursement Acceleration Program (DAP), which the Supreme Court recently declared partially unconstitutional. The spending program, intended to fast-track economic growth by moving funds from slow-moving projects to fast-disbursing ones, was thrust into the media spotlight in September 2013. In a privilege speech, Senator Jinggoy Estrada revealed that 20 senators received at least P50 million each in additional lump-sum allocations from the DAP allegedly as an incentive to impeach then Chief Justice Renato Corona. AS IT HAPPENS: Senator Jinggoy Estrada’s privilege speech) More than 9 months later, the high court declared 3 schemes in the program unconstitutional. These are:

• the creation of savings prior to the end of the fiscal year and the withdrawal of these funds for implementing agencies
• the cross-border transfers of savings from the executive department to offices outside it
• the funding of projects, activities, and programs not part of the General Appropriations Act or GAA.  

In response, President Benigno Aquino III issued a veiled threat to the Supreme Court in a televised address: “We do not want two equal branches of government to go head to head, needing a third branch to step in to intervene. We find it difficult to understand your decision.” His allies in Congress have since moved to investigate the Judiciary Development Fund.