DA exec appeals to Senate panel: Retain our P50M confidential fund

MANILA — A Department of Agriculture (DA) official appealed to the Senate Committee on Finance on Thursday not to scrap their agency’s P50 million confidential fund (CF) for next year.

DA Assistant Secretary James Layug, who heads the DA Inspectorate and Enforcement, said their agency needs the fund to strengthen their operation against unscrupulous traders.

“The department really can use the confidential fund to also investigate especially we have a quarantine powers under the Food Safety Law and Price Act also and even in the Meat Code we have the power for, we are mandated to conduct surveillance, market surveillance and market inspection and also yung sa mga imports natin nandiyan tayo,” Layug told the panel.

Layug made the appeal minutes after Senator Raffy Tulfo questioned the DA’s proposed P50 million confidential fund for next year.

The amount is included in the DA proposed P167.5 billion budget for next year.

Agriculture Senior Undersecretary Domingo Panganiban confirmed to the committee about their requested CF for year 2024.

“We have P50 million for the DA, solely for enforcement and smuggling,” Panganiban told Tulfo.

“So, bakit kailangan niyo pa po confi funds kung smuggling pinagu-usapan, andyan naman po yung BOC (Bureau of Customs) na mayroon ding confi funds?” Tulfo pressed.

Panganiban said the fund was only given to them, prompting Tulfo to make an immediate suggestion.

“I-surrender niyo na lang po at ibigay niyo na lang po sa ibang mga agency na nangangailangan tulad ng (Philippine) Coast Guard siguro. Kailangan natin dahil palaging nagkakaproblema tayo sa West Philippine Sea,” Tulfo said.

Senator Cynthia Villar, vice chair of the committee, seconded Tulfo’s stand.

“The enforcement agency against smuggler and cartel... would be coming from the law enforcement agency not DA... we will make the ano, the adjustment realignment. Actually, the one who will enforce after the anti-agricultural, economic sabotage will be the law enforcement. So, we don’t need,” Villar said.

“Exactly. So paki-cancel na lang ano, huwag na kayo magkaconfi-funds diyan pandagdag pa kayo. That’s a lot of money,” Tulfo said.

Layug initially attempted to convince the senators that their P50 million CF was meant for “surveillance operation for anti-agricultural smuggling ops,” but Tulfo maintained that those tasks belong to the Philippine National Police and Bureau of Customs.

“So sauli niyo na lang yung confi funds hindi niyo kailangan yun,” Tulfo said.

“Yes, sir,” Layug replied.

But minutes after Tulfo left the hearing, Layug explained that their CF would help the DA strengthen its campaign against unscrupulous traders.

“We will also need sana some support para naman mapatibay natin yung mga surveillance operation and ma-reinforce po itong mga accomplishment na nasimulan na rin ng DA po,” Layug explained.

Villar then advised Layug to be “creative” in performing their job, and just follow Tulfo’s instruction.

Senate Deputy Minority Leader Risa Hontiveros meantime stated that she has no intention to question the DA’s P50 million CF.

DRY FUND FOR MILK AGENCIES

Prior to the DA’s CF issue, agency officials were first cornered by Senators Nancy Binay and Villar about the minuscule fund allotted to the National Dairy Authority (NDA) and Philippine Carabao Center.

In the 2024 DA budget, the NDA was only given by the Department of Budget and Management P272 million, and the PCC aorund P711 million.

Agriculture Undersecretary Mercedita Sombilla of Policy, Planning and Regulations explained the DA actually requested P1.3 billion for the NDA and P1.4 billion for the PCC, but it was significantly slashed by the DBM.

Villar quickly criticized the allocated fund, saying that such budget cannot pull up the current 1 percent milk production in the country as against the presence of imported milk which remains at 99 percent.

“We have a milk supply problem in the Philippines. The milk supply in the Philippines is 1 percent, and 99 percent imported. Nun ko pa yan sinasabi several years ago, I cannot understand that these agencies were created in the 1990s... bakit one percent of demand? Two agencies in milk, one percent of demand after 30 years?” Villar asked.

“Tapos ngayon makikita pa natin, ibinababa pa yung budget,” Villar added.

Binay pointed out that support to the milk industry is actually important given its connection to the government’s major programs like the feeding program for school children and support to Filipino farmers.

“Gusto nga natin na yung mga farmers natin would go into dairy production para may ready market na sila na yung gagamitin ng DepEd (Department of Education) sa kanilang feeding program eh kukunin na nila sa ating dairy farmers,” Binay pointed out.

“Kung ang DA mismo hindi ipaglalaban sa DBM na kailangang dagdagan ang budget ng Dairy Center at saka ng Carabao Center, at aasa na lang kayo palagi sa congressional insertion. So parang hindi namin nararamdaman yung pagbibigay nyo ng importansya dito sa ganitong sektor ng ating agrikultura,” she added.

Asked by Binay what aspects will be affected by the budget cut, Sombilla answered: “Sa PCC, yung herd build-up ang nawala.”

“Papano po tayo magkaka-gatas kung walang anong herd build-up?” Binay quipped.

Villar said low milk production will also affect poor children’s access to free milk supply.

Both Villar and Binay instructed the DA to look for additional funds for NDA and PCC from some of its less important programs.