Bill on modification of BCDA charter is vetoed by Marcos

President Ferdinand Marcos Jr. has vetoed a bill amending the charter of the Bases Conversion and Development Authority (BCDA), citing concerns raised by national agencies regarding the proposed changes. The vetoing of the bill was announced on April 26, 2023, by the Presidential Communications Office (PCO).

The bill, which passed the Senate on third and final reading in February, proposed several amendments to the BCDA's charter, including a grant of authority to the BCDA to determine alienable and disposable lands, a mandate that, according to President Marcos, falls under the Department of Environment and Natural Resources.

One of the main concerns raised by President Marcos was a proposed increase of P100 billion in the BCDA's authorized capital. He expressed concern that the proposed increase could affect the government's fiscal integrity.

President Marcos also expressed concern about the bill's language granting land ownership and authority to the BCDA in disposing of lands. He believes this contradicts Republic v. Heirs of Bernabe, a decision that states the state is the beneficial owner of lands transferred to the BCDA by virtue of Republic Act No. 7227 or the BCDA Act of 1992.

The President finds the proposed use of proceeds from the sale of lands allocated from economic zones inconsistent with the government's one-fund policy and limits fiscal flexibility. He believes that this aspect of the bill would mainly accrue to the BCDA, which could potentially restrict the government's ability to allocate resources as needed.

The national authorities and ministries that expressed concerns about the proposed amendment to the BCDA's charter before President Marcos vetoed the law included the Department of National Defense, the Department of Justice, and the Department of Public Works and Highways.

The BCDA is a Philippine government agency responsible for the development and management of former military bases that have been converted for civilian use. The proceeds from the sale of lands allocated from economic zones are a significant source of revenue for the BCDA. However, President Marcos believes that the proposed changes to the BCDA's charter could have far-reaching implications for the government's fiscal management.

In his veto message, President Marcos transmitted his concerns to both houses of Congress, urging them to reconsider the proposed amendments. The veto message was included in a press statement issued by the PCO. The future of the bill remains uncertain as it awaits possible reconsideration by the Senate and the House of Representatives.