President Duterte has approved the discontinuation of P30.824 billion worth of infrastructure projects of the Department of Public Works and Highways (DPWH) to fund the grant of financial assistance to local government units (LGUs).
A memorandum obtained by the BusinessMirror from the office of Executive Secretary Salvador C. Medialdea dated April 6, 2020, and addressed to Budget Secretary Wendel E. Avisado showed the approved financial assistance to LGUs will be dubbed as “Bayanihan Grant to Cities and Municipalities” in a bid to boost LGU capacity to respond to the Covid-19 pandemic.
The government said the fund will be sourced from the infrastructure projects of DPWH classified as “For Later Release” under the FY 2020 General Appropriations Act, or Republic Act 11465.
Moreover, the President also authorized the reprogramming and realignment of generated savings for the said grant equivalent to one-month Internal Revenue Allotment of the city/municipality, subject to the availability of funds, and pertinent budgetary, accounting and auditing laws rules and regulations.
Avisado, who confirmed the authenticity of the document to the BusinessMirror, said the proposed freeze of infrastructure projects “was done in consultation and coordination with DPWH.”
While he refused to elaborate on the details of these infrastructure projects, as well as the parameters that were taken into consideration on why these specific projects were chosen to be discontinued, the budget chief said in a text message: “That will form part of the report to Congress po. We need to focus first on the guidelines so that we can work on the release of the funds as quickly as we can.”
The President was supposed to submit his weekly report of all government actions performed in line with the Bayanihan to Heal as One Law to Congress every Monday.
Under the Bayanihan Law, the President may also direct the discontinuation of appropriated programs, projects, or activities of any agency of the Executive department, including government-owned or -controlled corporations in the 2019 and 2020 national budgets, whether released, or unreleased, as well as the allotments which remain unobligated.
The law also allowed to utilize the savings generated from these to augment the allocation for any item directly related to support operations and response measures to address the Covid-19 response.
“Notwithstanding the provisions of this act, the discontinued program, activity, or project, may be revived any time after the national emergency has ceased, and notwithstanding Section 67 of Republic Act 11465 or the General Appropriations Act of 2020,” may be revived and proposed for funding within the next two fiscal years,” read Section 4 Subsection V of the Bayanihan Law.