Borrowing Foreign Loans is a Power of the Purse, Dimwit

The Philippine Constitution empowers the chief executive to borrow foreign loans on behalf of the Republic "with prior concurrence of the Monetary Board and subject to such limitations as may be provided by law."

Once again, one sees the extensive reach of the executive "power of the purse," enclosed in the supreme law of the land; only this time, instead of enclosed within an explicit description of public appropriation, the "power of the purse" is tucked within the capacity of the chief executive to ask foreign lenders credit in exchange for constitutionally protected "state secret" investment returns (the specifics of which, we will never know), thanks to executive privilege.

Yes, consent of the Monetary Board and limitations demanded by law, which Congress makes, provides a certain degree of accountability to executive borrowing. But given executive privilege, how is it possible for transparency to flourish under these current constitutional conditions?

Without congressional inquiry, lawmakers are unable to hold accountable the executive branch. Although the legislative branch may limit the chief executive through the laws it enacts, laws are insufficient checks to executive excesses (1) when they are neither updated nor tuned to limit the different approaches or new ways in which the chief executive do business with foreign lenders and thus get foreign loans; (2) lack of transparency allows no scrutiny of state concessions to foreign lenders; (3) and even if the chief executive is restrained by existing laws, Congress is not allowed to demand access to and scrutiny of executive agreements which may include foreign loans, an impasse which is shielded from congressional inquiry by virtue of executive privilege.

Let us not forget that accountability is only possible when transparency exists. Without congressional scrutiny and consent on executive agreements, laws that limits how and how much the chief executive borrows are useless.

As a result, I propose that a specific congressional resolution noting the limit and duration of such borrowing authority, with each house voting separately, is required before the chief executive is authorized, on behalf of the Republic, to borrow foreign loans.

The power of the purse is not limited to appropriations of funds found within the purse, but also funds that emanate outside the purse. The danger of delegating borrowing authority to a single officer of the state, with few or insufficient restraints, is a danger that can lead us not only to economic collapse, potential abuse and dire corruption, but also to the lost of our liberty to decide how our money is spent, whether be it for self-interest or the common good.