Newsbreak: SC fails to remit over P5B to national treasury

UPDATED 5:30 p.m. - Citing Commission on Audit (COA) reports in 2008 and 2009, an online news magazine reported that the Supreme Court (SC) allegedly defied the law by failing to deposit to the national treasury over P5 billion in trust funds. A Newsbreak report said the SC did not deposit to the Bureau of the Treasury over P5 billion in trust funds and millions of pesos more earned on fiduciary fund interest. However, SC spokesman and court administrator Atty. Jose Midas Marquez, said the fund was intact and "never concealed." "The amount is intact and deposited in Land Bank. That is why this is always reflected in the annual reports of the Supreme Court submitted to the COA. This fiduciary fund was never concealed," Marquez said in a statement distributed to the media on Friday. According to a Newsbreak report of veteran journalist Marites Danguilan Vitug, "The COA found out that, in 2008, the Court did not deposit P4.8 billion in trust receipts. By 2009, the running total was already P5.38 billion." The article said the SC has yet to comply with COA's recommendations that the unremitted trust funds and interests earned on fiduciary funds be turned over to the treasury. The fiduciary fund includes trust receipts, performance bonds, cash bonds, etc. Over the years, this has accumulated to more than P5B," Marquez explained. "Pending determination of some legal issues, Chief Justices Narvasa, Davide, Panganiban and Puno did not allow its remittance to the national treasury," he said. Marquez said the court of SC Chief Justice Corona has been deliberating on the issue about the funds for some time now. "Considering that this was collected by the courts over the years, the issues now are how and for what purpose can this be spent, and whether or not this must be remitted to the national treasury," Marquez said. "This is what the Corona Court is now finding out. The Court has been deliberating on this for a few months now, and this issue is again in the Court’s agenda in January 2011," he added. Executive Order (EO) No. 338 directs the deposit of cash balances to the national treasury. "All government offices and agencies are hereby required to immediately transfer all public moneys deposited with depository banks and other institutions to the Bureau of the Treasury, regardless of income source," reads Section 2 of the EO. Newsbreak said "the COA reports also show that, in 2008, interest earned on fiduciary funds and forfeited and confiscated bonds that was not remitted to the treasury was P74.6 million." Fiduciary funds are proceeds that do not belong to the holder, which is mandated to remit the amount. According to the Newsbreak article, forfeited or confiscated bonds "are derived from surety or cash bonds whenever the accused fails to appear in court when summoned." These bonds are what are popularly known as "bail-money." What happened to the allowances, savings? Months ago, Marquez mentioned that the judges may protest against budget cuts in the judiciary. The judiciary requested a P27.1-billion budget for 2011, but the Department of Budget and Management allotted only P14.3 billion or half of what was requested. The judiciary had been clamoring for a bigger budget, citing:

the need to repair dilapidated court rooms;

unpaid allowances amounting to P900 million, and

the lack of resources for a swift delivery of justice. Despite the courts' supposed budget woes, the Newsbreak article noted that during a budget hearing in October, scrutiny by the Senate's finance committee revealed that the SC has an unused amount of P236.7 million for allowances as of December 2008. The amount was from the Judiciary Development Fund and the Special Allowance for Judges/Justices Fund, which are sourced from filing fees and other fees from those availing themselves of the court's services. Citing SC data, the article also said the high court has saved about P2.8 billion from its budget for salaries because of the 20-percent vacancy rate in the judiciary. Senate finance committee chairperson Franklin Drilon, during the same budget hearing in October, asked Marquez to explain the untapped millions for allowances. "It is made to appear to our judges that the national government is neglectful of their situation because salary schedules have not been implemented.... What I am pointing out is that P236.6 million which was in the savings and current account of the Supreme Court has not been distributed as allowances," Newsbreak quoted Drilon as saying. Marquez replied, "It is not an issue, the failure to distribute allowances." Drilon then responded, "(For) the committee on finance, that is an issue because we are looking at the budget... If we are going to listen to your plea for additional budgets, we must look at what is available to the Supreme Court," said the Senate finance committee head. — RSJ/MRT/VVP/HS, GMANews.TV