​​[In This Economy] ‘What has occurred to the Faculty?’: Winnie Monsod’s wake-up name

Final week, I had the nice pleasure of moderating the fourth Ruperto P. Alonzo Memorial Lecture on the UP Faculty of Economics (UPSE). This was organized by alumni of the Faculty’s outdated Program in Growth Economics (PDE), in honor of their late professor Sir Ruping (as he was lovingly referred to as), who handed away again in 2017.

Lately, the PDE program is named the Grasp in Growth Economics (MDE) program. But it surely has all the time catered to coaching economists and analysts in middle-level and technical positions in authorities, the personal sector, and civil society organizations.

Anyway, the lecture final week featured Appearing Secretary Rolando “Rolly” Toledo of the Division of Funds and Administration (DBM), himself being a product of the PDE program. The theme was: “Defending Fiscal Integrity: Combating Corruption in Public Finance.” The discussants have been Professor Cielo Magno, my colleague on the Faculty and ardent advocate of funds reforms, and Dr. Jun Miral of the Congressional Coverage and Funds Analysis Division. Additionally within the viewers was former funds secretary Benjamin Diokno, a product of the early batches of the PDE program, and an emeritus professor of the Faculty.

The lecture was memorable sufficient as a uncommon second the place authorities officers talked overtly concerning the funds scandal that exploded in 2025. But it surely was made further memorable by the fiery questions posed within the open discussion board by Professor Emerita Solita “Winnie” Monsod. (You’ll be able to watch a part of that right here.)

First, she requested Secretary Toledo: “I’d wish to know when did your workplace (otherwise you personally) discover out that there was one thing improper? As a result of issues don’t simply explode, they construct up…. The place did you go improper?”

Secretary Toledo replied that he came upon when it was “declared or introduced” by the President. He added that except a “monetary and bodily report” is submitted by an company or validated by the Fee on Audit, the DBM doesn’t know that the issue exists. He additionally mentioned that they issued a round mandating company heads to certify (by way of a notarized doc) that packages they may pay are reliable.

I requested Ma’am Winnie is she’s glad with the response, and he or she mentioned emphatically, “No.”

She added, “How might you not have recognized? It’s past perception that we couldn’t have recognized about this.” She identified (appropriately) that the DBM itself ought to monitor the implementation of the nationwide funds as a part of its mandate, even when it’s not a frontline company to combat corruption.

At the moment, Ma’am Winnie was already commanding the center of the auditorium. Then she turned her to Ben Diokno who was seated to her left. She mentioned, “After which we discover that your [Diokno’s] assistant for therefore lengthy… We have now a funds secretary who resigned due to corruption…” Ma’am Winnie was referring to former funds secretary Amenah Pangandaman, a longtime assistant of Diokno and in addition a product of the PDE. Pangandaman resigned in November 2025 as investigations into flood management initiatives have been heating up.

Ma’am Winnie then exclaimed, “What has occurred to the Faculty of Economics? I’m very, very disillusioned, I have to say… It hurts me that this corruption scandal occurred when members or graduates of the Faculty of Economics have been in positions of accountability…”

This can be a arduous wake-up name for the Faculty. However let me additionally add that it’s straightforward to overstate the function of the Faculty. In primary economics, we educate that folks reply to incentives, and the improper incentives can result in dangerous or misguided choices by authorities officers, regardless of how technically competent they’re or it doesn’t matter what college they got here from.

Turning again to Secretary Toledo, Ma’am Winnie mentioned, “I’m sorry if I offended you, you don’t get an excellent grade from me.”

It was a historic second as a result of up till now, the function of UPSE alumni within the funds anomalies was type of hush-hush. Ma’am Winnie’s put out in public a difficulty that hounds the Faculty and its repute.

Who approved unprogrammed fund releases?

I adopted up with questions on unprogrammed funds, noting that Congresswoman Mika Suansing, the present chair of the Home Appropriations Committee, confirmed in 2025 that a minimum of P141 billion in flood management initiatives in 2023 and 2024 have been funded utilizing unprogrammed appropriations.

Secretary Toledo confirmed that it was former funds secretary Amenah Pangandaman (a longtime assistant of Ben Diokno and in addition a graduate of the PDE program) who signed the Particular Allotment Launch Orders (SARO) that allowed the downloading of funds for anomalous flood management initiatives.

Ma’am Winnie interjected to level out that in 2008, the late funds secretary Emilia Boncodin already referred to as out that unprogrammed funds have been being abused. “Why do the technocrats not deliver this out extra forcefully?” She then requested Ben Diokno to make clear who approves the discharge of unprogrammed funds — the funds secretary or the president.

Diokno stood up, received a mic, and insisted that it’s the president who approves, and that the secretary can’t launch it by himself or herself. He mentioned that the secretary indicators however they “will need to have a memo to the president, you can’t launch it by yourself — except you modified the foundations,” implying that in his time, issues have been a bit completely different.

However Secretary Toledo rebutted, “So far as I do know, the [budget] secretary is the one who indicators and approves the discharge from the unprogrammed appropriations,” as long as the legislation’s necessities are fulfilled.

This change offers blended indicators however has big implications. Both Malacañang knew, or former funds secretary Pangandaman acted autonomously. (READ: Marcos, DBM can’t wash fingers of ‘mangled’ 2025 funds – ex-finance chief)

On the one hand, if we comply with Diokno’s logic, it could seem that President Marcos would have first-hand information of flood management challenge approvals, if the funds secretary wants permission from the Palace earlier than releasing unprogrammed funds. This might demolish the concept that Marcos was in any manner “shocked” that flood management corruption was occurring. On the similar time, this serves to take away accountability from the previous funds secretary Pangandaman, a long-time assistant of Diokno.

Then again, the official line from Secretary Toledo is that the funds secretary indicators and approves releases from unprogrammed funds, while not having the approval of the President. This might absolve the President however put the blame on Amenah Pangandaman who signed all of the releases.

Later, there was settlement amongst economists within the room that the “unique sin” got here from the best way Congress bloated unprogrammed funds. Cheekily, Cielo mentioned that maybe subsequent time former congresswoman Stella Quimbo — one other product and former college of the Faculty — ought to be invited to reply for the funds anomalies, insofar as she was the previous vice-chair of the Home Appropriations Committee (second-in-command to Zaldy Co and ally to former speaker Martin Romualdez).

Wake-up name

In sum, Ma’am Winnie’s remarks final week are a much-needed wake-up name for the Faculty. It can’t be denied that alumni of the Faculty (particularly Amenah Pangandaman and Stella Quimbo) have been implicated in the entire funds mess that opened the floodgates to public works corruption. Different alumni have been bureaucrats concerned within the funds course of a method or one other.

Positive, it’s unfair in charge the Faculty solely for the corruption scandal. However for good or dangerous, the Faculty does produce graduates who discover themselves within the halls of energy later of their careers. And I do hope that at UPSE we’re producing younger, promising economists who will not be simply technically savvy but additionally possess robust ethical fiber to talk out reality to energy.

The broader lesson, I believe, is about how simply technical experience could be neutralized by damaged political incentives. If we don’t repair these incentives, then count on in any other case good or competent individuals to remain silent or be eaten up by the system 10, 50, and even 100 years from now. – Rappler.com

Dr. JC Punongbayan is an assistant professor on the UP Faculty of Economics and the creator of False Nostalgia: The Marcos “Golden Age” Myths and Easy methods to Debunk Them. In 2024, he acquired The Excellent Younger Males (TOYM) Award for economics. Comply with him on Instagram (@jcpunongbayan).

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