HOUSE OF REPRESENTATIVES Quezon City FIFTEENTH CONGRESS First Regular Session HOUSE RESOLUTION No.

192 ______________________________________________________________________________ Introduced by Reps. TEDDY A. CASIO and NERI JAVIER COLMENARES

RESOLUTION DIRECTING THE COMMITTEE ON GOOD GOVERNMENT AND PUBLIC ACCOUNTABILITY TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, INTO THE PHILIPPINE INFORMATION AGENCYS (PIA) 55 PERCENT BUDGET OVERSHOOT THAT FINANCED THE ADVERTISEMENTS OF THE MACAPAGALARROYO ADMINISTRATION IN VIOLATION OF REPUBLIC ACT NO. 9524 OR THE GENERAL APPROPRIATIONS ACT (GAA) OF 2009 WHEREAS, the 2009 Annual Audit Report of the Commission on Audit (COA) on the Philippine Information Agency (PIA) revealed that the agency overshot its budget for the said year by 55 percent; WHEREAS, according to the COA report, the PIA received funds from the Office of the President (OP) that bloated its budget in 2009 to trumpet the achievements of then President Gloria Macapagal-Arroyo. The report said that the 55% budget hike was in blatant violation of Republic Act No. 9524 or the General Appropriations Act (GAA) of 2009; WHEREAS, the COA said that notwithstanding that the excess funds received from DBM were funds of OP, the funds received still exceeded the programmed expenditures of PIA under the GAA. In concrete terms, the PIA received from the Department of Budget and Management (DBM) a notice of cash allocation (NCA) amounting to P344.789 million, even though only P222.488 million was appropriated for it under the 2009 national budget. This translates to a P122.302 million hike in the budget; WHEREAS, the illegal PIA fund increase also increased advertising expenses by P31,290,881.05 or 41 percent from P76,129,893.17 in 2008 to P107,420,774.22 in 2009, which went to advertisements in print, radio and television media for Mrs. Arroyos achievements; WHEREAS, the PIA advertisements included placements in newspapers in early 2010. The said ads dwelled on the administrations so-called successes in the economy, social development, infrastructure, law and order, job generation, agriculture, energy, environment and digital infrastructure;

WHEREAS, the ads, titled, Ganito Tayo Noon, Ganito Tayo Ngayon were also criticized since they carried the initials and campaign color of administration standard-bearer Gilbert Teodoro; WHEREAS, the COA recommended to the PIA in its report that the agency only spend funds intended for operations as authorized in the GAA and to return the excess releases to DBM; WHEREAS, the COA also discovered in its audit that the that PIAs advertising placements worth P48.6 million covering 38 transactions were not supported by complete documents, thereby making the determination of the existence, validity and legality of the transactions difficult; WHEREAS, the same report also said that P40.385 million in cash advances to officers and employees remained unliquidated as of December 31, 2009. Only a small portion (P5.27 million) of the said amount has been liquidated and recorded as of January 31, 2010; NOW THEREFORE BE IT RESOLVED, that the Committee on Good Government and Public Accountability conduct an inquiry, in aid of legislation, into the Philippine Information Agencys (PIA) 55 percent budget overshoot that financed the advertisements of the MacapagalArroyo administration in violation of Republic Act No. 9524 or the General Appropriations Act (GAA) of 2009. Adopted,

REP. TEDDY A. CASIO Bayan Muna Party-list

REP. NERI JAVIER COLMENARES Bayan Muna Party-list