Treasury: P137.3-B Malampaya Fund intact

From the Department of Finance

The Bureau of Treasury (BTr) today said that contrary to claims made by Sen. Ralph Recto, P137.288 billion in Malampaya Funds remain intact in the National Government, with collections and government shares for the fund still credited and booked under Fund Code 151, a Special Account in the General Fund (SAGF) managed by the BTr.

“Sen. Recto’s claims are unfounded and misleading. The remaining Malampaya Fund balance—all amounting to P137.288 billion—is not ‘gone,’ as he says, but perfectly intact in the National Treasury,” Treasurer Rosalia V. de Leon said.

The Malampaya Fund was created for the purpose of financing energy resource exploration, development and exploitation programs and projects of Government and “such other purpose as may be directed by the President,” as prescribed under Presidential Decree (P.D.) No. 910 issued on March 22, 1976, Creating the Energy Development Board, Defining its Powers and Functions, Providing Funds Therefor, and for Other Purposes.

“Malampaya Funds” are sourced and collected through the Department of Energy (DOE) from, among others, government share representing royalties and rentals, as well as production share on service contracts and other payments on the exploration, development and exploitation of energy resources, in accordance with P.D. No. 1234 issued on November 8, 1977. The Malampaya Funds are considered income and collections authorized by law that shall be remitted to the National Treasury.

According to the BTr, the total amount deposited by the Department of Energy (DOE) in the Malampaya Fund from March 25, 2002, to September 30, 2013, amounted to P179.338  billion while total Special Allotment Release Order (SARO) releases against the Malampaya Fund during the same period reached P42.050 billion, leaving a balance of P137.288 billion, which is available in the National Treasury.

As funds under SAGF 151, the Malampaya Fund is used to finance energy-related programs of the Department of Energy (DOE) and/or pay off National Government obligations provided for in the General Appropriations Act (GAA). Further, E.O. 848 issued on October 13, 2009, Authorizing the Use of the Special Account in the General Fund (Fund 151) of the Department of Energy for Purposes as may be directed by the President of the Philippines.

From 2004 to 2009, the Malampaya account funded P303 million of energy-related projects, as opposed to P23.3 billion of non-energy related projects. Under the Aquino administration, the Malampaya fund backed P18.45 billion worth of energy-related projects and did not fund any projects unrelated to energy.

Similar to other Special Accounts under the General Fund, the use of Malampaya Fund is automatically appropriated every year, and all releases are governed by SAGF procedures. Specifically, it requires the certification on actual amount deposited in the account and the issuance of the Special Allotment Release Order by the Department of Budget and Management (DBM).

dof.gov.ph

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