DILG memo on use of 20% development fund ‘legal’-A A +A
Thursday, June 16, 2011
AN OFFICIAL of the Department of Interior and Local Government (DILG) reiterated Wednesday that the memorandum on the use of the local government units’ 20 percent development fund has legal basis.
“It is part of the DILG’s general supervision function over LGUs,” explained Undersecretary for Local Government Austere Panadero, citing Section 287 of the Local Government Code, which provides that “each LGU should appropriate in its annual budget no less than 20% of its Internal Revenue Allotment (IRA) specifically for development projects.”
The statement was issued in reaction to reports quoting Cavite Mayor Strike Revilla, the president of the League of Municipalities of the Philippines, as saying that the DILG has “dictatorial tendencies” in issuing memos and that town mayors are disappointed and offended by it.
“The memo is meant to inform and enlighten the public and local officials on the proper use of their 20% development funds derived from their IRA. We issued the directive in response to reports we received from the Commission on Audit on the misuse of the 20% development funds for LGUs,” Panadero stressed. “We have no intention whatsoever to disappoint, offend, threaten or treat local government executives like children if they do not follow our memos.”
He added the memos are meant to implement good governance and the proper use of the 20% development funds as prescribed by COA and the Department of Budget and Management.
The DBM has the authority to prescribe items eligible for financing under the IRA while the COA can disallow improper use of the 20% development funds.
As per the memo, items that are not related to or not connected with the implementation of development projects and should not be paid out of the 20% IRA include cash gifts, bonuses, medical assistance, food allowance, uniform meetings, supplies, communication, water and light, petroleum products, and the like, salaries, traveling expenses, seminar and conference fees, construction and repair of administrative offices, purchase of office furniture and equipment and maintenance and repair of motor vehicles. (CGC)
Published in the Sun.Star Bacolod newspaper on June 16, 2011.