MANILA – The brother of vice-presidential aspirant Ronaldo Puno may find himself in hot water following allegations of mismanaging billions of pesos from the Road Users' Tax. 

Sen. Miriam Defensor-Santiago plans to file a resolution urging the Office of the Ombudsman to investigate Rodolfo Puno, former executive-director of the Road Board, after audit reports in 2008 revealed possible anomalies in the use of the fund.

The Commission on Audit (COA) noted that the Road Board had unreconciled deposits of collections and penalties amounting to P1.26 billion. The Road Board's regional offices also spent for projects beyond their allotted budget, resulting in an overdraft of P1.4 billion.

Aside from these, the COA also noted the following:

• Irregular and excessive disbursements in the implementation of projects worth P12 million;
• P10 million used for national road instead of provincial road;
• Unimplemented motor vehicle users' charge (MVUC) projects worth P57 million. 
   

On May 23, the COA asked the Road Board executive director to submit documents on the allocation of funds, but the board failed to do so. By that time, however, Puno had already been replaced by Danilo Valero. 
 
From roads to elections… 

Aside from these alleged irregularities, Santiago also questioned the sudden hike in the Road Board's expenditures in 2007. From an average of P8 billion in annual expenditures, the Road Board disbursed a whopping P24 billion in 2007, a mid-term election year. 

But Department of Public Works and Highways (DPWH) Secretary Hermogenes Ebdane, chair of the Road Board, refuted claims that the money was siphoned to the campaign chest of the administration in the 2007 elections.

He explained that there was “rapid increase” in expenses in 2007 because the board followed the “vision” of the World Bank, which is that “all collections for any year should be spent.”

But Santiago scored the lack of transparency in the use of the funds. She said the website of the DPWH or the Office of the President both lack any information on how the money is allotted and spent. She said this gives the perception that the funds are vulnerable to being used for political purposes.

“It’s the biggest pork barrel in history,” she said.

…to DILG programs

The Road Board, which is under the Office of the President, has collected a total of P56.5 billion in road taxes from 2001-2009. Santiago said it is the third largest source of tax revenue, but not a single centavo goes to the national treasury.

Instead, the money is poured into four trust funds: for national road projects, provincial roads, road safety, and pollution control program.

Santiago was surprised to find out that the funds are also used for the Out-of-School Youth Serving Toward Economic Recovery (OYSTER) program. The project, which hires out-of-school youth for the construction of road projects, falls under the supervision of the Department of Interior and Local Government (DILG) headed by Ronaldo Puno.
 
The COA said that the Road Board has spent P567 million for the OYSTER program despite the absence of employment guidelines.    

Prosecution, at last?
 
Ebdane said that they will go over the board’s documents and answer the COA report “point by point.” 

As chairman of the board, Ebdane may also have accountability over the management of the funds, Santiago said.

However, she said it is up to the Office of the Ombudsman to determine if the secretary is also liable for the anomalies.

Reports about the misuse of the Road Board’s funds are not new.

Last year, for instance, the House committee on public works and highways, headed by Southern Leyte Rep. Roger Mercado, probed the Road Board amid allegations that its budget is inequitably distributed to the provinces.

The COA 2007 report also showed that the Department of Budget and Management (DBM) released P1.7 billion in Motor Vehicle Users' Charge (MVUC) special funds to DPWH without special release allotment orders.

Malacañang then backed a congressional inquiry, but the investigation has not resulted in the filing of any formal complaint against Rodolfo Puno or any other officer of the Road Board.

Puno did not attend the investigation in the lower House last year. He was also a no-show in Friday’s Senate hearing.