There is a so-called “leadership fund” in the National Expenditure Program (NEP) which is included in the preparation of the government’s annual national budget.

Former Department of Public Works and Highways (DPWH) chief Manuel Bonoan disclosed this at the continuation of the Senate Blue Ribbon Committee’s investigation into the “ghost” and anomalous flood control projects on Tuesday, September 23.

Senate President Pro Tempore Panfilo “Ping” Lacson had asked Bonoan how legislators could “insert” funding in the NEP or the President’s budget after dismissed DPWH engineer Henry Alcantara claimed in his sworn affidavit that of the P710-million worth of projects downloaded to the agency, P450-million was included in the NEP, while P260-million was part of the General Appropriations Act (GAA).

Part of the agreement was that 25 percent of the amount would go to the proponents of the projects but an advance payment of 5 percent to 15 percent was usually requested by his boss, former DPWH Undersecretary Robert Bernardo, once the NEP was finalized.

A baffled Lacson asked how legislators could insert items in the budget during the proposal stage when the budget is not even in the legislation phase yet.

“That’s the domain of the Executive (Department). So how are the legislators involved in the insertions, and who is responsible for the planning?” the senator asked.

Bonoan then clarified that in the preparation of the NEP, they consolidate all requests and proposals, including from legislators.

“There’s a leadership fund that is being earmarked,” Bonoan said.

“We call it leadership fund. In order that if there are actually priority projects that are requested by members of the Senate, this is where we’re hoping to include it into the NEP,” he further explained.

But Lacson reasoned out that the NEP is submitted to the House of Representatives first, before the approved General Appropriation Bill (GAB) is transmitted to the Senate.

“Why are there already insertions in the NEP? That I really can’t understand for the life of me,” Lacson pointed out.

To which Bonoan said these are considered “consolidation” and not “insertion.”

However, Lacson said any insertion in the budget should happen in Congress, not in the NEP.

“You should have understood that from the very beginning. You shouldn’t be accommodating ‘leadership funds.’ Why are you accommodating them?” Lacson stressed saying that they can include legislators’ priority projects when they deliberate on the proposed budget.