Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
First Regular Session

COMMITTEE REPORT NO. 730

Submitted by the Committee on Veterans Affairs and Welfare and the Committee

‘on Appropriations on __03) 2

RE: House Bill No.

Recommending its approval in substitution of House Bill No. 604

Sponsor: Reps. Herminia B. Roman, Joseph Emilio A. Abaya, Rufus B
Rodriguez, 1and Maximo B. Rodriguez, Jr.

Mr. Speaker:

The Committee on Veterans Affairs & Welfare and the Committee on
Appropriations to which was referred House Bill No. 601, introduced by Reps.
Rufus B. Rodriguez and Maximo B. Rodriguez, Jr., entitled:

“AN ACT PROVIDING FOR THE PAYMENT OF THE ADMINISTRATIVE TOTAL

DISABILITY PENSION TO SENIOR VETERANS OF WARS AND MILITARY
CAMPAIGNS”

have, gepsidered the same and recommend that the attached House Bill No
4359 | entitled:

“AN ACT PROVIDING FOR THE PAYMENT OF THE ADMINISTRATIVE TOTAL

DISABILITY PENSION TO SENIOR VETERANS OF WARS AND MILITARY
CAMPAIGNS”

be approved in substitution of House Bill No. 601 with Reps. Rufus B. Rodriguez,
Maximo 8. Rodriguez, Jr, Herminia B. Roman, Raymond DC Mendoza, Czarina D.
Umali, Jorge T. Almonte, Godofredo V. Arquiza, Ma.Theresa B. Bonoan-David and
Joseph Emilio A, Abaya as authors thereof,

Respectfully submitted,

bcc ‘® ROMAN :
Chairperson

Committee on Veterans Affairs & Welfare

THE HONORABLE

THE SPEAKER

HOUSE OF REPRESENTATIVES.
QUEZON CITY


ve ene

10

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2

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO._4 954

Introduced by Representatives Rufus B. Rodriguez, Representative Maximo B.
Rodriguez, Jr., Herminia B. Roman, Raymond DC Mendoza, Czarina D. Umali, Jorge
T. Almonte, Godofredo V. Arquiza, Ma. Theresa B. Bonoan-David & Joseph Emilio A.
Abaya

AN ACT
PROVIDING FOR THE PAYMENT OF THE ADMINISTRATIVE TOTAL DISABILITY
PENSION TO SENIOR VETERANS OF WARS AND MILITARY CAMPAIGNS,

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:

SECTION 1. All collections of the Bureau of the Treasury from escheated
unclaimed deposits shalt be earmarked as a special account in the generat fund as one
of the sources for the payment of the Total Administrative Disability Pension for senior
veterans of wars and military campaigns, subject to the submission of a special budget,
pursuant to Section 35, Chapter 5, Book VI of E.O. No. 292, S.1987.

SEC. 2. The amount necessary for the continued payment of the arrearages for
the Total Administrative Disability Pension shall be included in the Annual General
Appropriations Act until such arrearages are fully paid

SEC. 3. All existing laws or parts thereof which are inconsistent with the
provisions of this Act are hereby repealed or modified accordingly

SEC. 4. This Act shall take effect fifteen (15) days following its publication in at
least two (2) newspapers of general circulation.
Approved,


FACT SHEET
House BilNo. 1359
(In substitution of House Bill No. 601)
(As approved by the Committees}

“AN ACT PROVIDING PAYMENT OF THE TOTAL ADMINISTRATIVE
DISABILITY PENSION TO SENIOR VETERANS OF WARS AND
MILITARY CAMPAIGNS”

Introduced by: HON. RUFUS B. RODRIGUEZ & MAXIMO B. RODRIGUEZ, JR.
Committee Referral: VETERANS AFFAIRS & WELFARE
Committee Chairperson: HON. HERMINIA B, ROMAN
Committee Referral: APPROPRIATIONS
Cammittee Chairperson: JOSEPH EMILIO A. ABAYA

OBJECTIVES

* To augment the payment of the Total Administrative Disability (TAD) Pension
which has not been fully implemented since its enactment in 1994.

» To ease the economic difficulties of our veterans.

KEY PROVISIONS

* Authorizes the release of all collections of the Bureau of Treasury from
escheated unclaimed deposits as one of the sources for the payment of the Total
Administrative Disability Pension of veterans.

» Includes the amount required for the continued payment of the arrearages for the

TAD Pension in the annual budget of the Philippine Veterans Affairs Office until
the same are fully paid.

RELATED LAW

» R.A. 6948, as amended - standardizing and upgrading the benefits for military
veterans and their dependents


ag Bet of the Philippines
Hause of Representatives
Quen City, Retro Manis

HON. JOSEPH FMILIO 4. ABAYA
Congressman, Ist Disirict, Cavite
an, Committee on Speropr:

Cha

February 8, 2011

HON. HERMINIA B. ROMAN.
Chairperson
Committee on Veterans Affairs and Welfare

Dear Chairperson Roman:

The Committee on Appropriations in its meeting held today at Conference
Rooms Zand 8, R. V. Mitra Building, approved to report out House Bill No 801.
entitled “AN ACT PROVIDING FOR THE PAYMENT OF THE ADMINISTRATIVE
TOTAL DISABILITY PENSION TO SENIOR VETERANS OF WARS AND
MILITARY CAMPAIGNS” with the following amendments.

4} Delete Section 1 and in lieu thereof substitute the following:

SECTION 4. ALL COLLECTIONS OF THE BUREAU OF
THE TREASURY FROM ESCHEATED UNCLAIMED DEPOSITS
SHALL BE EARMARKED AS A SPECIAL ACCOUNT IN THE
GENERAL FUND AS ONE OF THE SOURCES FOR THE
PAYMENT OF THE TOTAL ADMINISIRATIVE DISABILITY
PENSION FOR SENIOR VETERANS OF WARS AND MILITARY
CAMPAIGNS, SUBJECT TO THE SUBMISSION OF A SPECIAL
BUDGET, PURSUANT TO SECTION 35, CHAPTER 5, BOOK ¥!
OF E.O. NO, 292, S. 1987.

2) Delete Sections 2 and 3 and in lieu thereof substitute the following
SEC. 2, THE AMOUNT NECESSARY FOR THE
CONTINUED PAYMENT OF THE ARREARAGES FOR THE
TOTAL ADMINISTRATIVE DISABILITY PENSION SHALL BE
INCLUDED IN THE ANNUAL GENERAL APPROPRIATIONS
ACT UNTIL SUCH ARREARAGES ARE FULLY PAID.

Very truly yours

“A

Rep. Maximo 8. Rodriguez. Jr


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES y
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodrigaez and

Representative Maximo B. Rodriguez, Jr.

House Hill No, @01_

EXPLANATORY NOTE

‘This bill was originally introduced as House Bill No. 3344 by the undersigned
Rufus B. Rodriguez during the Foureenth Congress, It was approved by the
Committee on Veterans Affairs and Welfare under Committee Report No. 565, dated
May 21, 2008,

Congress has enacted RA. No. 6948, otherwise known as “An Act
Standardizing and Upgrading the Benefits for Military Veterans and their
Dependents,” in order to recognize inumense contributions of our war veterans, who
selftessly and valiantly defended our sovereignty against foreign intruders during
World War I.

Yet, for more than ten years, the iaw sadly has not been implemented, mainly
due to budgetary constraints and partly <0 administrative inefficiencies; ‘cansing
tremendous pecuniary losses to thousands of veterans and thew beneficiaries, some of
whom have died while waiting for the velease of what supposedly they are legally and
justly entitled to receive.

If only to provide relief, albeit inadequate and certainly not commensurate to
‘what our wartime heroes have accomplished for ou country, the proposed measure
intends to authorize the release of dormant accourts under the management and
control of DBM, in order to cover for initial payment io qualified ‘veterans, who at this
time, urgently need financial assistance ty shoulder ther medical and other pressing
needs.

The concrete manifestation of the government's profound gratitude to our
gallant veterans, more than honoring their contributions through superficial
ceremonies, is to expend all efforts to Provide needed assistance, financial or
otherwise, to our indubitably genuine heroes.

Hence, immediate Passage of this measure is earnestly requested.

RI IS B. ROI IGUEZ

Gi
MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES
First Reguiar Session )
HOUSE OF REPRESENTATIVES
House Bill No. Got

Introduced by Representative Rufiss B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

AN ACT
PROVIDING FOR THE PAYMENT OF THE ADMINISTRATIVE TOTAL

DISABILITY PENSION TO SENIOR VETERANS OF WARS AND MILITARY
CAMPAIGNS

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. The dormant accounts under the controt of the
Department of Budget ano Management are hereby made available for the
inital payment of the Administrative Totai Orsabitity Pension fer military
veterans in accordance with Section 2 of Republic Act No. 7696.

SEC. 2. Thereafter, the amaunt required to pay his pension for the
coming years shall be included in the annual budget of the Philippine
Veterans Affairs Office {PVAO).

SEC. 3. One tenth of the total amount of arrearages in this pension
Shall likewise be included in the budget for the coming years until such
arrearages are fully paid.

SEC. 4. Repeating Clause. All existing laws or parts thereof which are
inconsistent with the Provisions of this Act are hereby tepeated or modified

‘accordingly.

Approved,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

MINUTES OF THE SECOND MEETING OF THE COMMITTEE ON VETERANS
AFFAIRS AND WELFARE HELD ON NOVEMBER 9, 2010 AT 1:30 PM.
CONFERENCE ROOMS 14 & 15, RAMON V. MITRA BUILDING, HOUSE OF
REPRESENTATIVES, QUEZON CITY

GUESTS PRESENT:

4. Lt Gen. Emesto G. Carolina — Administrator, Philippine Veterans Affairs Office
(PVAO)

Dir. Prudencio C. Borlaza — Bureau of Treasury (BTr)

Justice Manue! R. Pamaran — Veterans Federation of the Philippines (VFP)

RVP Orestes Lopez - Treasurer General, VFP

Judge Salvador Princesa — Philippine Veterans Legion (PVL)

Bgen. Rosalino Alquiza — Chairman, Heritage Research & Development
Foundation, Inc.

Atty. igor Bailen ~ Department of Foreign Affairs (DFA)

@Aawn

~

L CALL TO ORDER

The meeting was called to order at 1:35 P.M. by Congresswoman Heminia B.
Roman, Chairperson of the Committee on Veterans Affairs and Welfare.

Hi. ROLL CALL
Upon motion of Rep. Czarina Umaii, duly seconded, the roll call was dispensed with.

Hl, | APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING

Upon motion of Rep. Umali and there being no objection, the reading of the minutes
of the previous meeting was dispensed with and the same considered approved

IV. PRELIMINARY REMARKS OF THE CHAIRPERSON

The Chairperson welcomed all the Members, resource persons and veterans
present to the second meeting of the Committee.

ov DELIBERATION OF HOUSE BILL NO. 3284, AMENDING PRESIDENTIAL
DECREE NO. 538 CREATING THE PHILIPPINE VETERANS INVESTMENT
DEVELOPMENT COMPANY (PHIVIDEC) INDUSTRIAL AUTHORITY AS
AMENDED BY EXECUTIVE ORDER 1031, BY ADDING TWO (2)
REPRESENTATIVES FROM THE LOCAL GOVERNMENT UNITS OF THE
MUNICIPALITIES OF VILLANUEVA AND TAGOLOAN IN MISAMIS
ORIENTAL AS MEMBERS OF BOARD OF DIRECTORS

Cong. Rufus B. Rodriguez, author of the bill, informed the Body that the bill was
approved by the House in the 14" Congress. He explained that it is necessary to


have two (2) additional board members representing the municipaiities of Villanueva
- and Tagoloan in Misamis Oriental to effect a smooth coordination between the LGUs.
and the investors, He mentioned that PHIVIDEC Industrial Authority (PIA) lost about
P400M worth of investments due to non-coerdination and conflict between the board
members and representatives of Han Jin Company. He also noted that the usual
number of board members is eleven (11) and that, currently, there are only seven (7)

board members.

Brig. Gen. Alquiza, representing the Heritage Foundation, proposed to increase the
remuneration of the members of the Board of Directors to P3,000.00 to be more
attuned to the present cost of living. He also noted that, as indicated in the bill, it is
the board members who will be fixing their own remuneration. He suggested that it
should pass through the proper channel and would require the approval of the

* President of the Philippines.

Cong. Rufus Rodriguez agreed to the suggestion and further raised the amount to
P5,000.00 so that Congress will not always be amending the section on

* remuneration, He informed the Body that there was a Resolution adopted in the 4am
Congress which requires the recommendation from the Department of Budget and
Management (DBM) and approval of the Office of the President (OP) for any
proposed increase in salaries or allowances. This requirement would serve as the
control mechanism on the matter.

Rep. Raymond Mendoza moved for the approval of the bill. With the motion duly
seconded and there being no objection, the Body approved HB 3284. The
Chairperson instructed the Committee Secretary to prepare and file the necessary
Committee Report with all the Members present as co-authors

Vil. DELIBERATION OF HOUSE BILL NO. 601, PROVIDING FOR THE
PAYMENT OF THE ADMINISTRATIVE TOTAL DISABILITY PENSION TO
SENIOR VETERANS OF WARS AND MILITARY CAMPAIGNS

. Rep. Rodriguez explained that the bill was approved during the 44" Congress under
Committee Report No. 565 to provide relief to our war time heroes who have
accomplished so much for the country. The purpose of the measure is the release of
dormant accounts under the management and contro! of the DBM to cover the initial
payment of arrears to qualified veterans. The bill is also a manifestation ci the
profound gratitude of the government to the veterans by providing sources of funds

to pay the arrears in their pensions.

At this point, Director Prudencio Borlaza, representative from the Bureau of Treasury
(BT?) was recognized to update the Body on the status of the dormant accounts
previously submitted by the agency. He clarified that although BTr maintained
several dormant accounts, the same were the proceeds from loans which are subject
to agreements and cannot be approptiated. He added that there are dormant
deposits from the various banks that can be possible funding sources; however,
these accounts are subject to escheat proceedings.

Cong. Rufus Rodriguez replied that it is the intention of the bill to capture these
dormant accounts to use for the payment of arrears. He cited that during the 2010


General Appropriations Act (GAA) he was able to include the P3B under the
Unprogrammed but the Government did not have any additional revenue He also
informed the Body that he was in receipt of a communication from USec. Mario
Relampagos of DBM clarifying that the DBM do not have any dormant accounts.

Replying to the query of Cong. Rodriguez, Dir. Boriaza replied thal the following
amounts were escheated for the past five (5) years and turned-over to the BTr:
P11M in 2005; P14M in 2006; P64M in 2007; P30M in 2008; and P6M in 2009. He
stated however that these amounts have already been appropriated. However for CY
2010, the dormant accounts which have not been approriated amounted to
approximately P4M as of September.

Cong. Rodriguez remarked that even if the amount is not that big, the Government

will be able to start paying the veterans. When this bill will be enacted into law,

Director Borlaza clarified that the amount collected by the BTr shall be earmarked for

the payment of the veterans’ pension arrears and not be transferred to the general

fund, the disbursement of which will pass through the usual budgetary accounting
. rules and procedures.

At this point, the Chairperson acknowldged the presence of the representative from
jhe Department of Foreign Affairs, Atty. Igor Bailen and the President of the
Philippine Veterans Legion (PVL), Judge Salvador Princesa. Judge Princesa
commented that despite the many laws for the veterans’ welfare, the budget for the
Total Administrative Disability (TAD) pension is still not fully implemented since
4994. He is very thankful to Cong. Rodriguez for taking up the cause of fully
implementing the benefits of the veterans as well as to Administrator Carolina. He
reiterated that the veterans are clamoring for the payment of their pensions and
benefits. He stated that only a few veterans were able to receive their partial TAD
pension payments. He said that Cong. Rodriguez represents the energy and the
spirit of the human consideration extended fo the veterans who are dying by the
{thousands every year. He expressed his desire for the inclusion in the budget of all
the benefits due to the veterans and its eventual one time release similar to the
Equity benefit given by the US Government to the Filipino veterans. He was proud
to announce that he was one of the first three recipients of the benefit who got the

check after a month.

The Chairperson acknowledged Administrator Carolina to comment on HB 601.
Administrator Carclina mentioned that PVAO supported the bill even if the amount is
not sufficient as long as the intention or desire to pay what is due to the veterans is
there. Since 1994 or 15 years ago. no amount has been appropriated for this
purpose and he believed that through this measure it will now be possible to pay the
TAD pension. He believed that this bill is an expression of the Government's
concrete desire to pay what is due to the veterans. He added that the importance of
this measure is not only to express our gratitude to the heroic deeds of the veterans
but also to make an impact on the generation of our future veterans. He stated that.
in South Korea, there is no delay in the benefit or pension due to their veterans
because they want the younger generation to witness how the veterans are being
treated so that they will be motivated to fight for or defend their country, The prompt
pension payment, not only express their country's gratitude to their veterans but also


impacts on the young generation's perspective on how their government treats its
war heroes.

Justice Pamaran was recognized by the Chairperson to comment on the bill. He
suggested that the dormant accounts intended for the veterans’ benefits should not
be escheated and transferred to the National Treasury but rather should remain as
an amount already appropriated for the veterans. In addition, he proposed to amend
Section 1 of the bill to refiect that the amount should not be escheated but be tumed

over to PVAO.

“Gong. Rufus Rodriguez, however, clarified that the law provides that dormant
accounts are subject to escheat proceedings and then be transferred to BTr for the
account of the veterans. He agreed that Section 1 should be amended and should
read as follows: “The dormant accounts which are escheated from ail banks and
government financial institutions which are now under the control of the Bureau of
Treasury are hereby made available and appropriated for the payment of the Total
Administrative Disability (TAD) Pension in accordance to the Section 2 of RA 7696".
He clarified that accounts that will be escheated are those accounts that have no
movement for last five (5) years. He emphasized that the important thing in this
measure as indicated in the explanatory note is that, it is a concrete manifestation of
the intention to start paying the veterans.

Thereafter, Cong. Raymond Mendoza moved for the approval of the bill. Wh the
motion duly seconded and there being no objection, the Body approved HB 601.
Upon the instruction of the Chair, the Commitiee Secretary will prepare and submit
-the necessary Committee Report to the Committee on Appropriations for their
comments.

VIL DELIBERATION OF HOUSE BILL 1658, PROVIDING FOR THE PAYMENT
OF ARREARS IN THE VETERANS’ PENSIONS AND BENEFITS
MANDATED PURSUANT TO REPUBLIC ACT NO. 7696, AS AMENDED,
OTHERWISE KNOWN AS AN ACT STANDARDIZING AND UPGRADING
THE BENEFITS FOR MILITARY VETERANS AND THEIR DEPENDENTS
AND APPROPRIATING FUNDS THEREFOR; AND

HOUSE BILL NO. 1158, MANDATING THE USE OF THE PROCEEDS
FROM THE DEVELOPMENT, LEASE OR USE OF CERTAIN
GOVERNMENT PROPERTIES FOR PAYMENT PENSIONS AND OTHER
BENEFITS OF THE VETERANS AND FOR OTHER PURPOSES

_Cong. Rufus Rodriguez, author of HB 1658, presented his bill as another funding
source for the payment of arrearages. The bill mandates that the proceeds from the
development, lease or use of certain goverment properties be allocated to fund the
arrears in the Total Administrative Disability (TAD) pension. He rationalized that
these properties: (1) Arroceros Property in Manila; (2) Veterans Memorial Medical
Center (VMMC) in Quezon City; (3) Taguig Industrial Estate; (4) Properties given by
the Japanese Government to the Philippine Government under the Reparations
Agreement including the Roponggi, Nampeidai, Fujimi properties in Tokyo,
Noniwacho, Obanoyama properties in Kobe; are for the veterans and their proceeds
should be used for their benefits. He informed the Body of the on-going development



in the Roponggi area and that the government is getting a substantial amount from
its development.

Justice Pamaran was recognized by the Chairperson. He suggested that HB 1158
&1858 be consolidated because they have the same purpose. VFP is supporting the
two bilis but they preferred that the Taguig Industrial Estate be excluded from the list
of properties to be developed as the property, managed by the VFP through
Proclamation No. 192, was already developed. On the site stands the Veterans
Center which served as the venue for the different activities of the Filipino War
Veterans including the Veterans Rehabilitation, Medicare and Training Center. He
suggested that only the properties that are not yet develop and are not being used
for the veterans’ benefits are to be included in the bill, To show VFP'S sincerity in
supporting the two measures, he invited the Committee to conduct an ocular
_ inspection on the Taguig Industrial Estate, which could serve as a model for
development.

In reply to the query of the Chairperson, Administrator Carolina stated that he
supported the inclusion of the Taguig Industrial Estate in the coverage of the bill. As
Administrator of PVAO, it is his mandate to consider the welfare of all veterans and
not just one particufar group. All of the veterans would benefit if said property would
be included. He added that even if the property was the subject of a proclamation, it
can still be included, citing the case of VMMC which is covered by two Proclamations
and a Public Law.

He clarified that although the TAD pension which is not yet fully implemented are

- considered “arrears”, in reality it is the “unpaid obligations of the goverment to the
veterans”. He emphasized that it is very unbecoming that the government have
unpaid obligation to its own defenders

- The author noted the concerns raised by Justice Pamaran on the Taguig Industrial
Estate. Given that the purpose of the bill is to gather all the possible funds from the
different properties to pay the unpaid obligations of the government to the veterans,
he inquired if it is possible that the property be part of the funding sources to pay the
obligations. Justice Parnaran replied that the income from the Taguig Industrial
Estate is being used for the maintenance of the VFP.

Administrator Carolina reiterated that the proceeds from the Taguig industrial Estate
should benefit all the veterans and not just a particular group. He stressed that OND
and PVAO were supporting the measures as its passage would strengthen the
supervisian and control powers of the DND over the VFP. It would empower DND to
determine how all the revenues and income derive from the property be utilized

The PVAO Administrator also informed the Body that there is already a Supreme
Court decision that VFP is a public corporation. Relative to that decision, the

_ Commission on Audit have been auditing VFP for the past two years. Management
audit is also necessary as VFP was organized and managed as a private corporation
prior to the Supreme Court decision. It is also imperative for COA to insist that VFP
conform to the governents’ accounting and auditing rules and regulations.


Congresswoman Umali moved that the two measures, HB 1658 and 1158 be
consolidated given that the intent of the two bills are basically similar. There being no
objection, the Committee approved their consolidation.

Thereafter, Congresswoman Umali also moved for the approval of the consolidated
bill, With the motion duly seconded and there being no objection, the Body approved
the consolidated bill. Upon the instruction of the Chair, the Committee Secretary will
prepare and submit the necessary Committee Report to the Committee on
Appropriations for their comments.

Vill. OTHER MATTERS

The Chairperson deferred the deliberation of the other measures as the authors
were not present.

Relative to HB 757 and HB 1273 on the proposed increased on veterans’ pension,
the Chairperson directed the PVAO Administrator to head the Technical Working
_ Group that would consolidate the two bills.

The PVAO Administrator suggested that the Committee considers amending RA
6948 to stop the accumulation of unpaid obligation of the government by removing
the portion of TAD pension under Section 5 (h). Gen. Alquiza agreed to the
suggestion to repeal Section 5 (h) of RA 6948 and recommended an increase in the
Old Age Pension instead

1X. ADJOURNMENT

There being no other matter to be discussed, the meeting was adjourned at 3:15pm.

Prepared by:

aD
rm
AROSE M. DALUMPINES
_SLSO |

I hereby certify to the correctness of the foregoing

L#blimn’
AS. LUNA
Comtmitee Secretary

Noted By:

in B Reman
HERMINIA B. ROMAN
Chairperson