Yap says P20-B decrease in military, police pension and gratuity funds was his decision

Committee on Appropriations chairman Eric Yap said that he decided to reduce the retired military and police's Pension and Gratuity Fund (PGF) for the year 2021 by P20 billion, after Anakalusugan partylist Representative Mike Defensor on Monday questioned the decrease.

In his privilege speech, Defensor mentioned that the PGF was "significantly reduced from P172.9 billion to P152.9 billion, noting that this deduction "largely affected" the payment of 2018 pension differentials.

"Kailan lamang ay naglabas ng statement ang Department of Budget and Management ukol and, if I may quote, '2018 pension differentials for retired military uniformed personnel,' dito sa kanilang ni-release na statement ay sinabi nila and if I may quote, 'Upon submission of the National Expenditure Program to Congress, P172.9 billion was proposed under the pension and gratuity fund to partially fund the payment of the 2018 pension differences for our military and uniformed personnel. However, the PGF was significantly reduced to P152.9 billion or a difference of P20 billion when the General Appropriations Act was passed, which largely affected the payment of the 2018 pension differentials'," Defensor said.

Defensor, an ally of former Speaker Alan Peter Cayetano, then blamed House Speaker Lord Allan Velasco for the decrease of the pension funds for the state's uniformed personnel.

"I now asked the leadership of the House, Mr. Speaker Lord Velasco, why did this happen? Paano natin pinayagan na ang pensyon at gratuity fund ng ating mga pulis, ng ating mga sundalo, ang mga Coast Guard, ang mga taga Bureau of Fire Protection at mga jailguards ay nabawasan?" Defensor said.

"Bakit natin pinakialaman ang dapat nilang tanggapin pag sila ay nagretiro at ang pensyon nila buwan-buwan para sa kanilang pamilya?" he added.

Defensor further manifested that he is withdrawing his affirmative vote to the 2021 national budget.

"Binabawi ko ang boto ko sa pondo o General Appropriations Act of 2021. It may be symbolic, it may not have an effect but it is a manifestation of my sentiment," the lawmaker said.

Yap owns decision

In response, Yap said that the P20 billion was used to assist in the national government's measures against the COVID-19 pandemic.

"Itong P20 billion po na sinasabing tinanggal para sa pension eh ito po ay pinag-usapan ng Executive, ng Senate at ng Kongreso. 'Yung P20 billion na po na 'yun ay hindi po nilagay sa Department of Public Works and Highways, ito po ay nilagay po sa iba pa pong kailangan sa COVID-19," Yap said.

"Ito po ay 'yung hindi ma-u-utilize at mailalagay na po muna sa mas kinakailangan po kung saan nandirito na po ang COVID vaccines, nandirito na po 'yung mga ibang equipment upang labanan po ang COVID," he added.

Yap noted that he decided on his own to reduce the PGF of the military and police for 2021, without consulting Velasco. He even said he is ready to lose his post as chairman of the Committee on Appropriations for his supposed mistake.

"Minabuti ko pong hindi konsultahin si Speaker Velasco noong tinanggal ko yung gratuity at pension fund... ito po 'yung sinasabi ko na may mga punto sa buhay kailangan natin magdesisyon," Yap said.

"Kung sa tingin ni Speaker Velasco ay mali ang aking ginawa, tatanggapin ko po kung ako ay tatanggalin niya sa Appropriations," he added.

Still, Yap said the removal of the P20 billion was agreed upon by the House, the Senate and the DBM, noting that it was diligently scrutinized by the bicameral conference committee and the Executive department.

"It was the most responsive budget we could craft and pass in the wake of the global pandemic, especially considering the fact that Speaker Lord Allan Velasco had to work double-time to pass the GAA and prevent a re-enacted budget," Yap said.

Reduced by P70B in 2020

Yap further said at least P70 billion was already reduced in the PGF of uniformed personnel in fiscal year 2020 when he was not yet leading the Committee on Appropriations.

He believed that this amount could have been affecting the release of the 2018 pension differential for the retired military and uniformed personnel.

"Gusto ko lang po sabihin na kaya po kinapos ang pension dahil sa tinanggal na P70 billion para sa 2020 budget na di po ako ang chairman ng Appropriations ngayon kaya po naghihikahos ang iba na di tumanggap ng pension," Yap said.

In response to this, former Committee on Appropriations chairman Isidro Ungab admitted that P74.029 billion was reduced in the PGF in 2020. However, he stressed that it was not his decision.

He said Cayetano and former Deputy Speaker LRay Villafuerte finalized the committee report on the 2020 budget.

"I would like to reveal this to everyone, 'yun pong nag-finalize ng bicameral committee report was not anymore the chairman... Hindi po ako ang nag-finalize nito, sila ang gumawa nito..." he said.

"Na-finalize po ‘yan sa Office of the Speaker. Andoon si Speaker Cayetano and [then-]Deputy Speaker LRay Villafuerte, who finalized the bicam report,” he added.

Villafuerte, for his part, said Ungab's allegation was "absurd on several points."

"There was no such push by the then-Speaker or by myself at the bicam committee talks for the 2020 GAA bill.  If I recall correctly, if there was such a move it was probably initiated by the Senate, not by the House contingent, let alone by the Speaker or by myself," he said.

He said if there was indeed a reduction of the PGF in 2020, Ungab should have learned about it and he should have done something to prevent it.

"If that had indeed taken place and he now claims he was clueless about it during the bicam talks, doesn't that speak volumes about his competence—or lack of it—as appropriations committee chairman and head of the House contingent?" Villafuerte said.

Meanwhile, Yap said his office is working to pass a supplemental budget to address the issue. He is eyeing an amount of P50 billion. — BM, GMA News