Robredo to local officials – refrain from using 20% Development Fund for gifts, bonuses

By MYLES JOSEPH E. COLASITO
December 14, 2010

TACLOBAN CITY  –  Secretary Jesse M. Robredo of the Department of the Interior and Local Government (DILG) enjoined provincial governors, city and municipal mayors to refrain from using the 20% development fund of their Internal Revenue Allotment (IRA) on gifts and bonuses, even as he stressed that this should be utilized for developmental projects.

In issuing DILG Memorandum Circular 2010-138 Secretary Robredo said the 20% component of the annual IRA should not be used for “administrative expenses such as cash gifts, bonuses, uniforms, supplies, meetings, communications, water and light, petroleum products, salaries, and the like; wages or overtime pay, and traveling expenses, whether domestic or foreign.”

Meanwhile DILG-8 Regional Director Francisco C. Jose clarified that the prohibition refers to the 20% development fund of the IRA being used for employees’ gifts and bonuses, but not to the whole IRA, which compose the bulk of many LGUs’ budgets.

Likewise the 20% development fund is not to be spent for registration or participation fees in training, seminars, conferences or conventions; construction, repair or refinishing of administrative offices; purchase of administrative office furniture, fixtures, equipment or appliances; and purchase, maintenance or repair of motor vehicles or motorcycles, except for ambulances.

Instead Secretary Robredo asked local authorities to allocate this part of the IRA to beneficial programs such as on livelihood and employment, school buildings, hospitals, health centers, and other projects that will improve the lives of their constituents.

Section 287 of the Local Government Code of 1991 states that every local government is mandated to appropriate in its annual budget no less than 20% of its annual revenue allotment to finance worthwhile initiatives.

The DILG Secretary further reminded local officials that using the 20% component of the IRA share, whether willfully or through negligence, for any purpose beyond those expressly prescribed by law or public policy shall be subject to the sanctions provided under the Local Government Code of 1991 and under such other applicable laws.