Senate panel defers approval of co-op, climate agencies’ 2025 budgets

A Senate Finance subcommittee has deferred the approval of the proposed budgets of the Cooperative Development Authority (CDA) and the Climate Change Commission (CCC) for next year.

Senator Imee Marcos, chairperson of the subcommittee, made the decision on the CDA after it failed to justify the increase in its traveling expenses for 2025.

"I am unable to endorse your budget to the mother committee. You have to provide a justification, firstly, for doubling your traveling budget expenses given the reduction in your budget," Marcos said.

According to CDA Chairman Joseph Encabo, the proposed budget for the agency in 2024 is set at P933 million under the National Expenditures Program. This is 32% smaller compared to the P1.3-billion budget allocated to the agency for 2024.

The decrease is due to the non-approval of locally funded projects and infrastructure projects, as well as the reduced allocation for cooperative programs, maintenance and other operating expenses, and capital outlay, Encabo said.

Encabo explained that CDA needed the travel funds for the inspection of cooperatives across the country, but Marcos pointed out that there are fewer cooperatives this year compared to last year.

The CDA chairman justified that the travel budget is being distributed to different regional offices and it depends on the number of cooperatives that are operating per region.

The region which has the highest number of cooperatives is in Region 3.

Apart from this, CDA was grilled after Marcos questioned the benefits of the PUV Modernization Program for drivers, particularly on the financial assistance.

"Anong pakinabang para maging co-op ng namamasada? 'Di naman kayo nagbibigay ng financial assistance... Bakit 'di na lang sila manatiling hindi co-op?" she asked, to which Encabo explained that it is the framework of the LTFRB.

(What is the benefit for drivers to join co-ops? You don't give financial assistance...why shouldn't they remain without co-ops?)

Marcos required the CDA to provide a coherent timeline and a procedural format for the PUVMP in coordination with the Office of the Transport Cooperatives and the Land Transportation Franchising and Regulatory Board (LTFRB).

The CDA was also asked to provide a report on why the Department of Justice's opinion hindered them from distributing to the coconut farmers the financial assistance from the annual allotment of P250 million under the Coconut Development Fund.

"We terminate the hearing for today but you will have to come back with the documents requested," Marcos said.

'Strange data'

Marcos also deferred the approval of the proposed P170.1-million budget of the CCC for 2025, which she said happens every year.

"I think, I cannot make any headway with your budget and with that, please submit all the required documentation. I am not a patient person. I believe I've been hugely patient but I am unable to derive information or cooperation from your end. That being the case, I defer the budget of the Climate Change Commission," Marcos said.

"This happens every year. I wish you would prepare better and give us more information. Every year we are deferred. This is not how it should be," she added.

The lawmaker hit the CCC's failure to provide complete information to the committee and the submission of "strange and deceptive data."

"I think, I am obliged...to recall you subject to the submission of the information requested," she said.

Among the concerns that Marcos raised against the CCC is the lack of dates and confusing information in the projects that it listed, as well as its low disbursement and obligation rate this year.

Marcos added that some ongoing projects were being as among the CCC's accomplishments.

The senator also questioned the existence of the CCC after the commission reported that the Philippines has yet to access the UN's Adaptation Fund.

"So what's the role of your commission? Are you more appropriately abolished and then located in the DENR? Kasi di ko maintindihan kasi nagra-rightsizing yung gobyerno," Marcos said.

CCC Executive Director Robert Borje explained the need for CCC to remain as there are "cross-cutting issues that ideally...are better addressed by the commission."

However, Marcos said the CCC's performance "wouldn't prove that."

Marcos pointed out that the CCC is like the National Disaster Risk Reduction and Management Council which is only a policy-formulating body that does not provide results.

The CCC was also grilled over the foreign travels which Marcos tagged as "excessive."

The issue was raised after the senator cited a Commission on Audit report which, she said, found that the foreign travels were "not liquidated within the time period [and] they were not bought and procured properly."

"You have 42 foreign travels in 2023. How many in 2024 and how many are booked in 2025? Sana all," Marcos said.

Borje was not able to respond immediately to Marcos which prompted the senator to require the submission of relevant documents.

"It's not a trick question. Dapat alam ninyo kung umalis kayo. At tsaka 2025, all the meetings are scheduled three years in advance. Bakit wala kayong bilang diyan?" she quipped.

It was also revealed by COA in the hearing that the CCC was not able to provide justification on the audit report that flagged the purchase of airline tickets.

Marcos, citing the COA report, said the airplane tickets were not procured and were only paid through reimbursement.

According to Borje, they will submit the additional justifications to COA within the week. — BM, GMA Integrated News