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Palace files appeal vs. SC’s ruling on DAP
By MARK MERUEÑAS, GMA News July 18, 2014 3:07pm
Tags: Bantay Kaban
(Updated 6:38 p.m.) Malacañang, through the Office of the Solicitor General, on Friday asked the
Supreme Court to reverse its ruling declaring unconstitutional certain acts and practices under the
questioned Disbursement Acceleration Program.
In its motion for reconsideration, the executive branch insisted that withdrawn unobligated allotments
and unreleased appropriations under the DAP were considered savings, contrary to what the high court
said in its ruling.
"Withdrawn unobligated allotments are savings because they are already portions or balances of...
Programmed appropriations free from any obligation or encumberance," the OSG said.
It added, "Appropriations need not be released to the agencies before they can be considered savings
precisely because Personal services appropriations for unfilled positions are not released in agencies
until and unless these positions are filled for the proper and optimal use of public funds and a request
by the department is submitted to the DBM (Department of Budget and Management)."
The OSG also said that declaring that savings may only be incurred at or near the end of the year and
requiring that all year-end savings must go to the National Treasury "is to operationally defeat the
President's power to augment."
"Nowhere in the the Constitution, the General Appropriations Act, or in any law is the 'release' of
appropriations a pre-condition for the generation of savings," it added.
The OSG also claimed that the high court has no constitutional authority to set a limit on how much the
President can augment an item
It added that a cross-border fund transfer—or the transfer of funds from one branch of government to
another—was constitutional, noting that while the Constitution prohibits the transfer of "appropriations,"
it does not prohibit the transfer of "savings."
The Solicitor General said the use of unprogrammed funds complied with the conditions provided under
the relevant General Appropriations Acts, adding that President Benigno Aquino III augmented items
with appropriation cover under the DAP.
"A careful perusal of the documentary evidence presented by the government will sufficiently show the
existence of appropriation covers for all DAP-augmented projects," it said.
The OSG added the "operative fact doctrine" does not operate to impute bad faith to DAP authors,
proponents and implementors - who the Palace insisted emjoyed presumption of innocence and
regularity.
"The doctrine of operative fact has nothing to do with the potential liability of persons who acted
pursuant to a then-constitutional statue, order, or practice," said the OSG.
It added: "They are presumed to have acted in good faith and the court cannot load the dice, so to
speak, by disabling possible defense in potential suits against so-called authors, proponents, and
implementors."
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Palace files appeal vs. SC’s ruling on DAP | News | GMA News Online http://www.gmanetwork.com/news/story/370926/news/nation/palace-fi...
1 of 5 7/19/2014 2:08 PM

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The OSG said that the mere nullification of an act "has no bearing on individual liability" precisely
because the doctrine primarily seeks to ensure that acts performed prior to the nullification are still
deemed valid on the theory that judicial nullification is "contingent or unforeseen event."
SC decision
In its July 1 decision, the high court sitting en banc declared the following "acts and practices" under
the DAP, National Budget Circular No. 541, and related issuances as unconstitutional:
- the withdrawal of unobligated allotments from the implementing agencies, and the declaration of the
withdrawn unobligated allotments and unreleased appropriations as savings prior to the end of the
fiscal year and without complying with the statutory definition of savings contained in the General
Appropriations Act;
- the cross-border transfers of the savings of the executive to augment the appropriations of other
offices outside the executive; and
- the funding of projects, activities and programs that were not covered by any appropriation in the
GAA.
The SC said these acts violated Section 25 (5) Article VI of the 1987 Constitution and the doctrines of
separation of powers.
The National Budget Circular No. 541, which sanctioned the DAP, allowed the DBM to withdraw
“unobligated allotments of agencies with low levels of obligations as of June 30, 2012, both for
continuing and current allotments.”
The court also ruled as void the portion of the DAP that allows the use of unprogrammed funds even
without a certification from the National Treasurer saying that revenue collections exceeded the
revenue targets due to non-compliance with the conditions provided in the relevant GAA. —NB/KBK,
GMA News
Tags: Bantay Kaban
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Palace files appeal vs. SC’s ruling on DAP | News | GMA News Online http://www.gmanetwork.com/news/story/370926/news/nation/palace-fi...
2 of 5 7/19/2014 2:08 PM
??? right word should be "
cross-branch" crossing the line
between a co-equal branch of
government. It implies transnational
money laundering.

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45 Comments
• •
nparvus1202 •
Ano pa kaya ang ibibigay na desisyon ng SC eh yun na nga yun. Saan pa kukuha
ng bagong ruling eh binase na nga ang desisyon sa constitution. Kahit ano pang
dahilan at argument ang ibigay ni BS basta mali yun sa constitution, eh mali, ano
pa?
• •
vic cruz •
Ano kaya ang mangyari kung hindi sundin ng executive branch ang judicial
branch? Laban ako.
• •
Clinton Peja Canarias •
mag aapela pala kau,.. bat di niu ginawa nung una? imbis binastos niu pa ang
SC...
• •
vic cruz •
Naintindihan mo ba iyong balita? This DAP issue is a matter of opinion.
Being contested by two equal branches of government. Obviously, one
sided ka lang. At ang mga pananalita mo, salita ng walang isip.
• •
Guest •
Nainintidihan mo ba mensahe ko, kung hindi tumahimik ka. Isa kang
zombie yellowtard, isa lang takbo ng isip mo kungdi ipaglaban na
baluktot na ginawa ng amo mong bokal, bokal ka rin noh.
• •
vic cruz •
Oh that's what you are. A zombie minded guy in dreamland.
Manood ka lang ng Walking Dead kung gusto mo ng
zombies. Sinung maniniwala sayo eh ang utak mo bulok na
patay. Oh, and I love yellow.
• •
Guest •
Baluktot talaga utak mo, baluktot din siguro yan ano mo noh,
di na matutuwid yan.
Palace files appeal vs. SC’s ruling on DAP | News | GMA News Online http://www.gmanetwork.com/news/story/370926/news/nation/palace-fi...
4 of 5 7/19/2014 2:08 PM

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Palace files appeal vs. SC’s ruling on DAP | News | GMA News Online http://www.gmanetwork.com/news/story/370926/news/nation/palace-fi...
5 of 5 7/19/2014 2:08 PM