1. Have a 15 years moratorium on spending anything from the fund from the start of lunch, to discourage current officials in government from messing with it.
2. Let the fund be managed by Professionals in the investment business.
3. Have it earmarked solely for the "future:"
a. spending for young children (0-12 years) for primary health care and education. and4. Setting a spending cap of only 75 percent at most of the net earnings from the investments, the balance of 25 percent to be further added to the principal.
b. projects that mitigate any effects that mining or similar extractive activities have on the environment.
5. A competitive bidding for projects to be funded, both private sector and government agencies can participate.
6. Have a bidding committee composed mostly of volunteers from institutions like churches (INC, Catholic, Protestants, Born Again, Islamic institutions) and perhaps experts from the academe.
7. Set in place a monthly reporting/updating system on liquidating expenses that can be viewed publicly through social networks
8. East Timor, which became a sate only in 2005(?) has already a huge Sovereign Wealth Fund in billions of dollars from their Petroleum industry. Even Singapore which has no extractive industry has huge Sovereign Wealth Fund.
I can support that proposal, thanks Jules. The current generation can be supported by existing revenues, public and private, and endless borrowings by the government. It is the future generation of Filipinos who have been compromised by the past and present political administrations via high and rising public debt stock and rising interest payment. If improperly managed further, it can generate a huge fiscal crisis someday.
But the intent of the law must be respected, that only energy-related projects should be funded from it. Then the fund should be used to develop more energy sources. When electricity supply is stable and affordable, faster development can happen. Energy is development.
But the intent of the law must be respected, that only energy-related projects should be funded from it. Then the fund should be used to develop more energy sources. When electricity supply is stable and affordable, faster development can happen. Energy is development.
Meanwhile, here are some facts from Maritess Vitug's article in Rappler last September 22, 2013.
* P130 billion (as of August) kept in a trust fund with the
national treasury, not reflected at all in the annual national budget.
* from the royalties of the seemingly bottomless Malampaya
natural gas reservoir off the shores of Palawan which provides about 50 percent
of Luzon’s power needs.
* Project began in
2001, it was during President Gloria Arroyo watch that the fortunes from Malampaya started to
flow into the government coffers. She spent a total of P23.6 billion, almost
all of which went to non-energy projects.
* Arroyo authorized the release of P19.3 billion, mostly in
2009, apparently for the rehabilitation of areas damaged by 2 typhoons. This
coincided with a pre-election year.
* Agriculture department (Secretary Arthur Yap) got a
lot of the bounty: P4 billion in 2008 “to augment the Agricultural Guarantee
Fund Pool and the rice self-sufficiency programs and other commodity programs”
and P1.8 billion in 2009 to help farmers and fishermen devastated by the
typhoons.
* Unterior department (Secretary Ronnie Puno) received
P2.1 billion in 2009 for its calamity rescue operations;
* National Housing
Authority (Vice President Noli de Castro, chairman, and Federico Laxa, general
manager) P1.4 billion for relocation efforts;
* Defense department (Secretary
Norberto Gonzales), P1.2 billion for the “structural maintenance project and
recovery of C-130.”
* Public works department (Acting Secretary
Victor Domingo who replaced Secretary Hermogenes Ebdane) that received the
heftiest share, P7 billion.
* Only P303 million went to supposedly fund the energy
projects of the science and technology department, transport and communications
department, defense department, and the energy department.
* Arroyo released almost P4 billion to Palawan as
assistance from the national government.
* For his part, President Aquino put in all of his
Malampaya Fund expenses to energy-related projects, about P15 billion from
2011-2012.
* Biggest chunk went to the National Power Corp (P6 billion),
followed by the DND (P5.6 billion) “to upgrade its capability” to secure the
natural-gas-to-power project.
* The rest went to the National Electrification
Administration (P1.9 billion), energy department (P300 million), and interior
department (P150 million for the “Pantawid Pasada”).
