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  • Gonzalez: Power subsidy is legal

     
    By Joel San Juan
    Reporter

    JUSTICE Secretary Raul Gonzalez Monday defended the legality of the P500 power subsidy granted by President Arroyo to those consuming 100 kilowatt-hours or less a month, saying it is part of the President’s discretionary powers.

    In an interview, Gonzalez told reporters that under the Constitution, the President is allowed to transfer funds from the savings of the government “for public interest.”

    The justice chief said under Section 25, paragraph 5, Article VI of the Constitution, the President, the Senate President, the House Speaker, the Chief Justice of the Supreme Court and the heads of Constitutional Commission “may, by law, be authorized to augment any item in the general appropriations law for their respective offices from savings in other items of their respective appropriations.”

    A similar provision is found, according to Gonzalez, in Section 59 of Republic Act 9498, or the General Appropriations Act (GAA) of 2008, which specifically authorized the use of savings.

    “The provisions clearly bestow upon the President the power to release public funds from the savings of the Treasury to finance the P2-billion power subsidy. The said subsidy clearly falls within the ambit of the GAA, considering that it is covered by the Priority Development Assistance Fund; in particular, the Specific Programs and Projects, to address the propoor programs of the government,” the justice secretary said.

    Gonzalez made the statement in response to questions over the legality of the power subsidy raised by former national treasurer Leonor Briones and Senate Minority Leader Aquilino Pimentel Jr.

    Briones branded the P2-billion subsidy as illegal for lack of an enabling law. Pimentel shared Briones’s views, saying that although the power subsidy’s intention is good, it does not exempt the President from the constitutional rule that all public expenditures should have prior approval of Congress.

    The DOJ chief, however, noted the Supreme Court in the case of Demetria v. Alba also upheld the President’s discretionary power over the use of government savings.

    In the said case, the High Court said: “There should be no question, therefore, the statutory authority has, in fact, deemed granted. And once given, the heads of the different branches of the government and those of the constitutional commissions are afforded considerable flexibility in the use of public funds and resources.”

    “Pursuant to the above-pronouncement of the Supreme Court relative to the validity of the power augmentation from savings, we believe that the power subsidies may be validly authorized by the President,” Gonzalez said.

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