Congresswoman Bernadette Herrera has launched a scathing critique against the Bureau of the Treasury (BTr), accusing it of illegally siphoning off funds meant for higher education and scholarship programs.
The controversy centers on the handling of the Higher Education Development Fund (HEDF), a special fund financed by revenues from the Tobacco Excise Tax (TSED). Herrera argues that the current practice of remitting these cash balances to the National Treasury directly violates national law.
In a passionate address, Herrera highlighted the conflict between Republic Act (RA) 7722, which established the fund, and Executive Order (EO) 338 from 1996, which directs government agencies to deposit cash balances with the Treasury.
“They took, even what they shouldn’t have taken,” Herrera stated. “The Executive Order can never supersede a national law. National law. RA 7722 is much, much more superior and should be followed than EO 338.”
The congresswoman pointed to a specific provision in RA 7722, which designates a Government Financial Institution (GFI)—not the Bureau of Treasury—as the manager of the HEDF. She revealed that the Development Bank of the Philippines (DBP) was initially and correctly identified as the fund manager.
Herrera demanded that the TSED remittances to the Treasury cease immediately, calling the practice a misdirection of “earmarked revenue” that is critically needed for the country’s students.
“The first thing you did was right, that DBP should be the manager of your fund,” she said, emphasizing that the interest income generated from the fund, if managed by DBP, should be used to finance scholarships. “Because you should also use the profit of that interest for the scholarships of our children.”
Labeling the issue a critical fight for the “new generation,” Herrera announced her intention to formalize a motion with the congressional minority. She called on her colleagues and the public, specifically invoking “BHS,” to join the cause.
“It’s really high time that this earmarked revenue of TSED, HEDF, is not taken by the Bureau of Treasury,” she asserted. “It has to be with DBP and managed by DBP and the interest should go to HEDF fund to allow more scholars, new generation, to study in college. This is very badly needed by our country.”
The congresswoman ended with a call to action, urging citizens to “Learn, watch and follow” the issue to ensure the earmarked revenues reach their intended purpose: solving the problem of college affordability for the nation’s youth.
The Bureau of the Treasury has yet to issue a public response to these allegations.#
