NOV 28, 2015

NR # 4032

House panel approves bill mandating use of proceeds from development,

lease or use of certain govt properties for benefits of veterans
The House Committee on Veterans Affairs and Welfare has approved a substitute bill
mandating the use of the proceeds from the development, lease or use of certain government
properties for payment of benefits of the countrys veterans.
The committee chaired by Rep. Herminia B. Roman (1 st District, Bataan) approved the
unnumbered substitute bill to the following measures: House Bill 518 authored by Rep. Rodolfo
G. Biazon; HB 954 by Magdalo Reps. Gary C. Alejano (Party-list, Magdalo) and Francisco
Ashley L. Acedillo; and HB 3276 by Reps. Rufus B. Rodriguez (2 nd District, Cagayan de Oro
City) and Maximo B. Rodriguez, Jr. (Party-list, Abante Mindanao).
Originally, the substitute bill provided that the proceeds from the development, lease or
use of certain government properties shall be used for payment of pensions and other benefits of
veterans. But Acedillo, head of the technical working group (TWG) that drafted the substitute
bill, moved to amend the bill so that the generated money shall be used primarily for benefits of
the veterans.
Acedillo explained the payment of the veterans pension is a mandate of the State.
No less than Chairperson Roman took due notice to this position and in fact, went to the
extent of requesting the TWG to consider it in the substitute bill so that the proceeds from the
development, lease or use of certain government properties concentrate in covering the benefits
of the veterans. The pension is a mandate of the State, said Acedillo.
The substitute bill provides it is the declared policy of the State to provide immediate and
adequate care and benefits to war veterans by allotting the necessary funds to pay for the arrears
in the payment of benefits of the veterans or their dependents.
It mandates the use of the proceeds from the lease, development or use of the following
government properties for such payment: former site of the Philippine Veterans Affairs Office
(PVAO) at Arroceros Street, Ermita, manila; Taguig Industrial Estate, otherwise known as the
Veterans Center provided under Presidential decree No. 192; properties given by the Japanese
government to the Philippine government under the Reparations Agreement, including the
Roponggi, Nampeidai and Fujimi properties in Tokyo, and the Noniwacho and Obanoyama
properties in Kobe; and other properties that may be identified by the Office of the President.
All proceeds from the lease, development or use of the mentioned properties shall be
concentrated on paying the benefits of veterans whether in arrears or due for payment by the
national government, the bill provides.
The bill further provides that any shortfall in payment of benefits to veterans shall be
settled by the national government from other sources.

Moreover, the measure authorizes the PVAO Administrator to direct, supervise and
coordinate private sector participation in the lease, development or use of the aforesaid
properties.
It also authorizes the PVAO Administrator to: secure possession of and the preservation of
the same; engage external expertise, as may be necessary; and submit periodic reports thereon to
the Department of National Defense (DND).
The DND Secretary, in coordination with the Secretary of Finance, shall formulate the
rules and regulations necessary for the effective implementation of the Act within 90 days after
its approval.
The bill will be referred to the Committee on Appropriations chaired by Rep. Isidro T.
Ungab (3rd District, Davao City) for review of its funding provisions.
Biazon, chairman of the Committee on National Defense and Security, said the national
government over the past 15 years owes war veterans and military retirees about P42 billion in
pension and other benefits.
The act of appropriating funds through the national budget for this purpose is obviously
insufficient. The funding requirements for the veterans and military retirees will continuously
grow over the years. As such, it is necessary to find creative ways to utilize government assets to
address these needs, said Biazon.
Alejano said although Republic Act 7696 was enacted in 1994 to provide comprehensive
benefits to war veterans, military retirees and their surviving spouses and dependents, the
national government through the years was not able to fulfill its commitment to pay such benefits
due to lack of appropriation since the law did not identify the funding source for such pension.
In 2010, the government finally appropriated an amount of P170 million in the General
Appropriations (GAA) but this was not enough to cover the total government obligation of P25
billion, said Alejano, a vice chairman of the Committee on National Defense and Security.
Rodriguez, chairman of the Ad Hoc Committee on the Bangsa Moro Basic Law, said the
payables to veterans and their beneficiaries continue to escalate, making it very difficult for the
government to honor its commitment.
The proposal to utilize the proceeds from the development, lease or other use of
government properties will enable the government accomplish its constitutional mandate of
providing assistance to said beneficiaries without affecting the national budget, Rodriguez. (30)
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