Wednesday, September 12, 2007 Jonas, council tangle anew on vehicle lease
MANDAUE City’s executive and legislative branches may be in for another clash, as Mayor Jonas Cortes wants to buy new cars for the police while Vice Mayor Carlo Fortuna and the majority bloc only favor the leasing of vehicles.
Cortes finds it cheaper to buy than to lease cars. Besides, he said, leasing vehicles for more than 15 days requires the approval of the budget secretary, as provided in National Budget Circular 446.
But Fortuna, in a separate interview, said buying new cars beyond a 1.6-liter engine displacement also requires the President’s approval.
Fortuna, who heads the legislative department, is amenable to buying new cars but only next year and the plan should be included in the proposed annual budget.
He suggested that the City just rent vehicles for the remaining months this year and buy brand new cars only next year.
Cortes said 3.3 of National Budget Circular 446 limits the rental of motor vehicles.
EO 292
It cited Executive Order (EO) 292 or the Administrative Code of 1987, which provides that no appropriations authorized in the General Appropriations Act shall be used for renting transport equipment for a continuous period of more than 15 days, except as may be authorized by the Secretary of Budget and Management.
But local government units (LGUs) are excluded in that circular, said Fortuna, as it only covers those authorized by the General Appropriations Act or transactions of the National Government.
He cited the same circular, which requires LGUs to seek the President’s approval if they intend to buy motor vehicles beyond a 1.6-liter engine displacement.
But this will definitely exclude Mandaue’s purchase of new cars, as Sedan-type vehicles are generally between 1.5- to 1.6-liter engine displacement.
Fortuna, however, did not state which part of the circular this was stated.
Last year, City Hall leased eight patrol cars, six multicabs and two meat vans from Rdak Transport Equipment at P1.025 million monthly or P12.3 million yearly.
Cortes said it will be P36.9 million for three years and way above the P6.4 million worth of eight new patrol cars, which will be maintenance-free for three years.
In November 2005, the City authorized then mayor Thadeo Ouano to sign a contract of lease with Rdak for eight Nissan Terranos at P800 per vehicle per eight-hour shift. (OCP)
