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There is a so-called “leadership fund” in the National Expenditure Program (NEP) which is included in the preparation of the government’s annual national budget.

Former Department of Public Works and Highways (DPWH) chief Manuel Bonoan disclosed this at the continuation of the Senate Blue Ribbon Committee’s investigation into the “ghost” and anomalous flood control projects on Tuesday, September 23. (Video courtesy of Senate of the Philippines)

READ: https://mb.com.ph/2025/09/23/ex-dpwh-chief-bonoan-theres-leadership-fund-in-nep

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00:00I don't want to reconcile, and this is addressed to Secretary Bonoan and maybe Yusek Cabral.
00:07Because in the statement of Yusek Bernardo,
00:12NEP is only a advance.
00:15He said this in paragraph 10,
00:18No. 2023, the project that was built in Yusek Bernardo,
00:23in Alcantara,
00:23sa aking District Engineering Office ay may halagang 710 milyon.
00:31Mula sa halagang ito, 450 ang pumasok sa National Expenditure Program, o NEP.
00:37260 naman sa GAA.
00:40Pagkatapos magkaroon ng insertions,
00:43ang kasunduan ay 25% ang para sa proponent.
00:48May advance payment ito na 5 to 15% na kalimitang hinihingi Yusek Bernardo kapag ganap na ang NEP.
00:58So, I'm just wondering,
01:00did you have knowledge that downloading of infra projects, at least sa Bulacan,
01:06nangyayari na sa NEP pa lang?
01:10How could that happen?
01:11Or, paano makakakuha ng 5 to 15% na National Expenditure Program pa lamang?
01:16Hindi ko na ma-reconcil doon sa mga competition nila,
01:20na meron ng,
01:22nakapactory na ba yung 5 to 15%?
01:25Sa NEP pa lang?
01:29May halaga na yun, di ba, sa budget?
01:32Please?
01:34Your Honor, I would not know actually the arrangements that are being made actually.
01:38He was your Yusek eh.
01:40Yusek for operations.
01:41Yeah, Your Honor, but I think in the NEP,
01:46the NEP is just the listing of the project.
01:48Budget proposal.
01:49Budget proposal, Your Honor.
01:51So, that's all.
01:52Paano nakapag-insert yung mga legislators sa budget proposal pa lamang?
01:56Eh, wala pa sa authorization phase,
01:59ika nga, or legislation phase?
02:02Yes, Your Honor.
02:02That's the domain of the executive.
02:04So, paano nakakapag-nakakialam na yung mga legislators,
02:09insertion,
02:09and sinong responsible dito, planning?
02:13Your Honor, I think this is what we want to clarify, actually.
02:16Please.
02:17In the preparation of the national expenditure proposal,
02:22in the NEP,
02:23I think we consolidate all the requests and proposals.
02:27For example, in the Senate,
02:30there is a leadership fund
02:33that is being earmarked.
02:35For senators...
02:36Leadership fund?
02:37Leadership fund?
02:38We call it leadership fund.
02:42In order that,
02:43if there are actually priority projects
02:45that may be requested
02:47by members of the Senate,
02:49this is where we are going to include it
02:51into the national expenditure program.
02:55Your Honor,
02:56Teca, hindi ko makuha.
02:59Kasi yung NEP,
03:00itatransmit sa Congress,
03:02lower house,
03:03and then eventually,
03:04pagka-house gap,
03:05akin sa Senate.
03:06Yes.
03:06Eh, bakit sa national expenditure program,
03:09meron nagat insertions?
03:10That I cannot really understand
03:12for the life of me, no?
03:14Well,
03:14we don't really call it insertion,
03:16Your Honor.
03:17We call it consolidation
03:17for the time being,
03:19because this is actually the...
03:21When we put it into the NEP,
03:23this is actually the President's program.
03:24This is the President's program.
03:27President's budget.
03:28President's budget.
03:29President's budget.
03:30So this is consolidating
03:32all the requests
03:33from all sectors,
03:34like in the Senate,
03:35Congress,
03:36and everything,
03:37Your Honor.
03:38So,
03:39this is where
03:41the list of projects
03:43are all incorporated
03:44into the NEP.
03:47Who bets this?
03:50Sino nagbebet?
03:50The vet,
03:53the vetting for,
03:55the vetting actually
03:56is with the planning service
03:58so that it will be
03:59consistent with the
04:01projects that are being
04:03included
04:04are consistent
04:06with the
04:07development program
04:09of the government,
04:10Your Honor.
04:11Fast forward,
04:12paano kung natin
04:12re-reconcil do sa mga
04:13costing nila?
04:15NEP pa lang,
04:16very premature,
04:17hindi pa ito gaah.
04:18That's what I don't
04:20understand, Your Honor.
04:21I cannot also understand.
04:22Why there is already
04:23this kind of
04:24aneracement?
04:24Kasi kung ipapakturin mo
04:25yung 5 to 15 percent
04:26na advance payment
04:27na nag-sa-NEP pa lamang,
04:30paano sila magko-coasting?
04:32I don't know.
04:33Well, this is something
04:34that...
04:34Or paano ito...
04:36I cannot really reconcile,
04:37ano?
04:38Kasi ito implementation.
04:40Ang NEP is only a proposal.
04:42Yes, Your Honor.
04:43It's a proposal.
04:44Yung insertion dapat
04:45nangyayari
04:46either sa House GAP
04:47because we call it
04:48amendment.
04:48House GAP,
04:49yes, Your Honor.
04:49Amendment.
04:50Yes, Your Honor.
04:51Actual insertion,
04:52pero amendment na tawag namin.
04:53And that's legal.
04:54That's right.
04:55That's really
04:55within the power
04:58or authority of Congress.
04:59That's correct, Your Honor.
05:00Pero NEP pa lang,
05:01ba't may participation
05:02na yung legislature?
05:03This is what I don't
05:05understand, Your Honor.
05:06Well, you just said
05:07na nagko-consolidate kayo.
05:08Yes, Your Honor.
05:09You should have
05:09understood it
05:10from the very beginning.
05:12Dapat hindi kayo
05:13nag-accommodate
05:14na mga...
05:15Oh, ayun yung tawag yung insertion.
05:18Anong tawag nyo kanina?
05:20Leadership fund.
05:21Okay.
05:22Leadership allocation.
05:23Bakit nyo in-accommodate?
05:25Well, the objective
05:26of which actually,
05:27Your Honor,
05:28is we know that
05:29members of Congress,
05:30including Senators,
05:33have actually
05:34some priority projects
05:35that they would want
05:36to include.
05:36They will have their time
05:38during the budget deliberation
05:40in the House
05:40and in the Senate.
05:42You know,
05:43Your Honor,
05:43what we wanted
05:44actually to do,
05:46and this is actually
05:47well,
05:49under this administration,
05:50we wanted it already
05:51to be put into
05:52the National Expenditure Program,
05:54NEP,
05:55into the NEP,
05:56so that by...
05:58We want to avoid
05:59that by BICOM,
06:02the NEP
06:03should already be intact.
06:04Yet,
06:04wala pa tayo sa BICOM.
06:05Yes, Your Honor,
06:06and this is the reason why.
06:07Bakit hindi nyo
06:08sabihin sa kanila,
06:10can you not wait
06:11for your budget deliberation
06:13bago kayo mag-amend
06:14or mag-insert?
06:15Bakit nyo pinapayagan
06:16na exclusive jurisdiction
06:19ng executive branch
06:21yung paggawa ng budget proposal
06:23or yung president's budget?
06:26Why are you...
06:26Why were you allowing it?
06:29Well,
06:29as I understand, Your Honor...
06:31Yung totoong reason,
06:32bakit?
06:33We want...
06:34We really want...
06:35For practical reason,
06:36sabihin nyo na lang.
06:37Para sana ho,
06:38hindi na nila gagalawin yung NEP.
06:41Hinalaw na nga yung NEP eh.
06:43Pagka hindi na nila gagalawin sana yung NEP
06:45sa BICOM...
06:46May I...
06:47thank you...
06:47Dus,
06:48thank you...
06:59...
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