Malampaya Fund: Where is it now?

[Nefarian]

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HISTORY

At first blush, the Malampaya project appears to be a perfect model for public and private cooperation UNTIL,

When inaugurated in 2001, the $4.5-billion Malampaya natural gas project is and remains the largest single foreign investment in the history of the Philippines. The project is 45% owned by Shell Philippines Exploration, 45% by Chevron-Texaco and only 10 percent by Philippine National Oil Company (PNOC). What seems wrong with this picture?

Shell and Chevron-Texaco thus control virtually all of the country's proven natural gas reserves, and at the same time, ensnare the largest share of benefits from its exploitation. In return for their investment, Shell and Chevron-Texaco expect to get $14 billion back over 20 years, or P574 billion at current exchange rates.
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What does the Philippine Constitution say about foreign exploration, development and utilization of our natural resources?
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Article 12 of the 1987 Constitution allows ventures or production-sharing agreements with foreign companies up to 40 percent capitalization. This means that at least sixty percent of the capitalization of such joint ventures or projects must be owned by Filipino citizens.
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The Malampaya natural gas project was an exception, if not an anomaly. It clearly violates the Constitutional limit on foreign capitalization to 40% on exploration, development and utilization of natural resources. The Philippine government has therefore allowed Shell and Chevron-Texaco to disproportionately benefit from our natural gas resources against the interests of the country.

Read the rest of the article here:

Uncomplicated Mind: Depoliticizing Malampaya


The question everyone is asking now is "WHERE IS THE MP FUND NOW?"

Some news articles are kind of misleading to the general public. The writers expects that everyone of us is an economist. That's why a lot are confused and I don't blame them.

When they say "It's Intact" then I would say it really is intact. It is readily available if there's an energy-related project that will be funded by it. Here's the bigger picture to make it more clear:

Every year there is a NATIONAL BUDGET. Instead of BORROWING from the local and foreign sectors for the yearly budget part of it is taken from the MP FUND and distributed(co-mingled) among those agencies under the General Fund. This saves the government from accruing INTEREST RATES.

Although the MP Fund is for energy-related purposes only BUT take note this is done with the full knowledge of Congress as they are ones who approve the budget. Even if by law the fund is intended primarily for energy-related use, the fact that Congress consents to BORROW it for the NATIONAL BUDGET means that is the current legislative intent.

But the Executive department can get it back anytime when it needs it for energy-related projects, without the need for Congress to approve it. That's the flexibility in the law which even Congress presumably thinks has merit, considering that they DID NOT AMEND it until now. Or Congress can change its mind and amend the law so that the Malampaya Fund becomes part of the General Fund (no more automatic appropriation for energy-related projects).

When the President needs to spend a portion of it for energy-related projects, the National Government can take the money from the General Fund or enter into a LOAN. The government's capacity to generate funds year-in year-out from tax revenues is practically ENDLESS. It can do deficit spending year after year unlike a regular business organisation. And it can easily pay it's domestic obligations (practically risk-less). And we're not even talking of an obligation to a third party here. It's a borrowing from Government's own Special Fund.

And these people with the likes of Recto instead of helping the public to understand, adds more to the confusion. Sounds like a "Background Noise" to me. Diversionary tactic?

What's important here is the proper accounting of where the funds go. Maybe the answers to that will come soon.

PS: "I merely elaborated what Purisima, de Leon, Abad's explanations of where the funds go. If what they claim is TRUE or NOT I don't know. That is why we need proof what part in the General Fund it was commingled with."

[masakiton]

sala sa previous admin
na mana ra ang problema

[Nefarian]

sala sa previous admin
na mana ra ang problema

Pila na kaha kabook post nimo nga copy paste sa? haha.

OT: I hope everyone understands now where the MP funds go. But 10% share for the Filipinos dili nako ma take. I hope usbon na ug i follow jud ang Constitution.

[masakiton]

Pila na kaha kabook post nimo nga copy paste sa? haha.

parihas ka daghan sa imo gi pang copy paste nga article

[kit_cebu]

one day...when EVERY SINGLE ONE of the senators/congressmen will be present in the president's SONA, someone will drop a nuke...in that very spot...

***throws a coin in a wishing well

- every pinoy

[masakiton]

one day...when EVERY SINGLE ONE of the senators/congressmen will be present in the president's SONA, someone will drop a nuke...in that very spot...
***throws a coin in a wishing well
- every pinoy

basin dili ma apil ang ka alyado
basin kung mag sona.. mo gawas napud ang walang kamatayang sala sa previous admin

[dexlimp]

it's in the bank accounts or vaults sa mga politiko hehehe..mao btaw naghimo cla ug bank secrecy law pra ma protektahan ila kaugalinon dli lng ang general public

[makal34]

wala lgi ko mka dungog aning malampaya funds sa mga sona sa presidenti krn ug sauna pa..Y kha?

[amingb]

@Nefarian

"That is why we need proof what part in the General Fund it was commingled with" ...

according to abad in 2011 ( “No cash sitting in bank. And will have to borrow when they spend for projects under Malampaya.” ) ....

According sa Treasury its intact ....

base sa imohang explanation bro its more like gi borrow lang ang Malampaya Fund and then puede ra bawion anytime aron mo intact lang gihapon ? ....

Unsa may tinood ani ? kinsa may nag libog2x ani si Recto ? Recto just want an explanation ug asa na ang Fund ....

Ang pangutana lang gud ni Recto ug Intact man Kaha ... “Their statement is misleading that [the] funds are intact, when I know the cash is used to support the GAA (General Appropriations Act or the national budget)"

In Other Word ... missing jud ni ...

[amingb]

Ingon si De Leon its Intact ... question ni Senator Osemana gi coorborated ni De Leon during the Hearing ....

So it’s spent. So you’re actually using it like it was part of the general fund,” the senator asked which was answered in the
affirmative by the finance chief. “There’s no more cash,” corroborated by De Leon

pasanginlan man dayon si Recto nga maoy nag libog2x nga mao man gani Gusto ug saktong Explanation ....

Mao ni sakto .... “If that is true, this fund collects over a $1 billion a year, so in the three years under President Aquino, it collected over $3 billion, that’s about P130 billion more or less. So you have to tell us how you spent the P130 billion because if its zero now, ergo, whatever you collected, you spent. How was it spent? That’s the question,” Osmeña said.

Missing jud ang Fund ... wait ta sa ilahang report sa disbursement ani nga Fund .. Zero Balance najud diay unya mo ingon pa ug intact .... unya si recto pasanginlan nga nag libog2x

“Essentially you’re already validating the statement of Recto that there’s nothing left there. And that’s okay as long as it’s properly spent, there’s nothing and that’s ok as long as it’s properly spent, there’s nothing wrong with that. But I would caution you to stop saying that we have P130 billion (balance) there because then you’re going to start another firestorm,” the senator who presided over the proceeding told Aquino’s economic officials led by Abad, Purisima, National Treasurer Rosalia de Leon and Bureau of Internal Revenue (BIR) chief Kim Henares.
“We can provide you with the disbursements coming out of the Malampaya funds. We can provide all the details for all the expenditures using Malampaya funds,” De Leon assured the senator.

Mao na diha mo ingon ug intact ug zero na diay ....