Akbayan party-list Rep. Percival Cendaña has called out the transfer of unprogrammed funds for infrastructure projects in the proposed 2026 national budget to Foreign-Assisted Projects (FAP) – noting that it is just another unprogrammed appropriations (UA).
In a virtual interview on Thursday, Cendaña said that while allocations for the Strengthening Assistance for Government Infrastructure and Social Programs (SAGIP) were transferred to FAP, there is still a need to clarify where the funds would go because both are considered UA.
‘That is what we have observed, the reduction of the SAGIP projects, but when we saw it, it seems it was just transferred to the FAP, the Foreign Assisted Project,’ he said. ‘So we really need to scrutinize the allocations under UA.’ According to Cendaña, while there are reforms initiated for the budget process, it should be clarified how the UA will be appropriated.
‘Because while we have mentioned improvements, reforms, a lot still has to be explained, like the basic issues, like why are these items placed under the UA, if these are obligations that we should pay for our healthcare workers, if these are obligations under foreign loans when we implement foreign assisted projects,’ he said.
But Deputy Majority Leader and Lanao del Sur 1st District Rep. Zia Alonto Adiong allocations for FAP are necessary because the country just cannot renege on its obligations to projects backed by foreign loans.
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‘The Foreign Assisted, these mostly are big ticket projects, we cannot avoid that, we cannot just renege from our obligation to the agreement that we had with Foreign Assisted Projects. So we cannot turn back on that,’ Adiong, a vice chairperson of the House of Representatives’ committee on appropriations, said.
`Open to any abuses’
‘Number two, it’s a matter of really restricting, for example, it’s restricting the usage so that it may not be open to any abuses. That’s why we removed the infra projects from SAGIP, because that in a way is a room for probably using these funds to allocate to some projects that are not really that important,’ he added.
Adiong also assured the public that there are safeguards to ensure that the placement of SAGIP funds to FAP would not be prone to production.
‘So here, we prioritize. I mean it comes to the Foreign Assisted projects, we know that there are big ticket projects and there are guidelines on how to source out that fund,’ he said.
‘It’s not as easy as just getting a portion of that and using that indiscriminately to whatever programs that one may think should be allocated to,’ he added.
Earlier, Adiong was also asked about the presence of the payment for healthcare workers’ allowances during the COVID-19 pandemic in the proposed 2026 budget, even if these were already paid in 2025.
According to Adiong, both the Department of Budget and Management (DBM) and the Department of Health (DOH) should explain this, agreeing with views that having line items for programs that have been completed raises suspicions.
‘Well, we cannot answer for DBM [.] I for one do not know how, but I’m sure the DBM has the perfect [.] explanation for that. But I cannot quite for certain give you a direct answer to that,’ Adiong, a vice chairperson of the House of Representatives’ committee on appropriations, told reporters.
‘Well, one would think of it that way,’ Adiong said when asked if having the line item for healthcare workers’ allowances was suspicious. ‘Because if it is already paid, of course, it should not be there. So again, it’s something that our executive department (should explain), but I’m pretty sure that they have the answer for that.’
Adiong explained that the discovery of the line item for health workers’ payments were made after agencies approached the BARSc, a sub-panel of the appropriations committee, about projects that they prefer to be prioritized.
DOH apparently told the BARSc that they have already completed the payments, and therefore can be removed from the proposed 2026 budget.
Last September 2, the DBM announced that it has released the P6.8 billion final balance for the payment of health emergency allowance to healthcare workers who served during the height of the COVID-19 pandemic, or from 2021 to 2023.
This is not the first time, however, that there were reports of projects already completed being present in the 2026 National Expenditures Program. Early September, Deputy Speaker and Antipolo Rep. Ronaldo Puno suggested that the NEP be sent back to the DBM due to several problems – like the discovery of multiple or redundant entries. Puno revealed that Department of Public Works and Highways (DPWH) programs in the district level still received allocations despite these being completed already, citing the case of Marikina Rep. Marcelino Teodoro who experienced the said issue. Puno said he also checked the allocations for his own district – the first district of Antipolo – and he found out that projects provided by the district and regional engineering office of the DPWH were no longer in the NEP.