MANILA, Philippines - Several senators on Tuesday raised doubts over the use of intelligence funds of government-owned and -controlled corporations (GOCCs) that can be used as discretionary funds of top GOCC executives.

Sen. Ferdinand "Bongbong" Marcos Jr. said he was surprised that the Subic Bay Metropolitan Authority would allot P5 million in corporate funds for "intelligence" when government agencies such as the Philippine Drug Enforcement Agency (PDEA) do not have an intelligence fund.

"We have intelligence agencies whose sole purpose  and sole reason for existence is to collect intelligence. Surely they can avail of their information if it is relevant to the conduct or running of the SBMA. Can you imagine SBMA, which is a commercial enterprise in essence, has an intelligence fund and PDEA has not? That is an anachronistic situation," he said at a Senate joint committee hearing on the perks of top government officials.

Senate President Juan Ponce Enrile said intelligence funds of law enforcement agencies such as the Department of National Defense, National Bureau of Investigation and Philippine National Police are usually allotted for intelligence-gathering activities.

He noted that many government agencies have their own intelligence funds now including the immigration, internal revenue, and customs bureaus.

"This intelligence fund system has been abused. When you look into the budget of the government, almost all executive officers have intelligence funds...I am surprised that even government corporations have intelligence funds. Assuming these are approved by the president, how are these [funds] spent? How is the manner of liquidating this fund in the hands of non-security organizations of the government?" he asked.

"I think it's about time we knock out these intelligence funds because it would amount to billions of pesos," he added.

He said that in the case of SBMA, the intelligence fund should be allotted for a specific intelligence project with defined objectives, purpose and operating people.

He also noted that "cars and drugs" are being smuggled in and out of SBMA despite the allocation of an intelligence fund.

Commission on Audit Chairman Reynaldo Villar earlier identified SBMA administrator Armand Arreza as the highest paid GOCC executive in 2009, with total earnings of P26.865 million last year.

Of that amount, P5 million was allocated for the intelligence fund for his office, while the rest goes to basic salary, per diem, clothing, bonuses, and other allowances including P18.1 million for "extraordinary and miscellaneous expenses."

Director Mary Grace Chua of the Department of Budget and Management (DBM) said salaries and benefits of SBMA officials are set by the SBMA board since these are not covered by the Salary Standardization Law.

She added that the P5 million intelligence fund is actually part of the SBMA's maintenance and other operating expenses (MOOE) under its annual Corporate Operating Budget, which is approved by the Office of the President.

Arreza has denied receiving millions of pesos in compensation, saying that his monthly gross salary is P131,880.77 and his take home pay is P95,449.35.

He also said the P5 million intelligence fund is used for the SBMA's law enforcement department and investigative division.