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Friday, August 19, 2005
Editorials: Furor over contracts
The question whether the mayor or governor can enter into a contract for a local government unit (LGU) without approval by the town or city council or the provincial board has spawned a raging controversy.
The Commission on Audit (COA) has cited alleged violations of some local chief executives in "unauthorized" contracts.
Most prominent is the case of the Cebu governor who, the COA records, entered into contracts involving more than P102 million in 2004 without authority of the Provincial Board (PB).
Eight PB members who consider the governor's acts a "trampling" of the legislature's rights raised the issue before the Visayas ombudsman.
The anti-graft case still has to be resolved with the new fire stoked by COA reports highlighting the "violations."
The disagreement is on how the Local Government Code must be read.
Under the Code, contracts require authorization of the legislature before the chief executive signs them, "unless otherwise provided" in the same law.
It is the exception, the "unless," that's causing the problem. The exception must be that provision allowing disbursements in accordance with general or supplemental budget, which the chief executive can use to release money without prior legislative approval.
Vague enough for clashing interests in the business of government to exploit. Thus, the current tempest.
COA is not exactly blameless. Not the least of its faults is selective targeting of chief executives and LGUs as well as contracts to thrash.
But why doesn't the agency supervising local governments, the Department of Interior and Local Government (DILG), mediate by laying down a much clearer rule based on the laws and regulations? DILG can get the opinion of the Department of Justice, the House and Senate members who authored the laws, and its own legal experts to reconcile the conflict.
While the opinion of the ombudsman and eventually the courts is more definitive, that takes a lot of time. Meanwhile, the issue hangs and impedes the work of local governments.
Intent of the law
There's a way to resolve the issue on contracts: Look at the law's intent.
The law must intend the legislature to review contracts, to help protect the LGU's assets and provide check and balance.
The law must not intend, however, to unnecessarily bind the chief executive by requiring the legislature's approval on every management decision.
(August 19, 2005 issue)
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