Robredo: 182 governors, mayors misused development funds

MANILA, Philippines - Some 182 governors and mayors “misused” their 20 percent development funds sourced from the Internal Revenue Allotment (IRA), Interior and Local Government Secretary Jesse Robredo said yesterday.

Robredo said that according to the Commission on Audit (COA), 80 of the 182 local government units (LGUs) utilized the fund for regular expenses such as salaries and wages, maintenance of facilities, traveling, celebration of festivities, and financial assistance.

“The COA reported that 102 other LGUs did not implement or fully implement the development projects funded as shown by an unutilized balance of a total of P650.6 million,” Robredo said.

Robredo said the COA audit evaluated a compendium of 1,351 Annual Audit Reports (AARs) of the LGUs for 2008 and covered various areas of local government operations.

The evaluation included the 20 percent development fund, economic enterprises, and accounts property, plants and equipment, and cash advances because of their significant balances.

“These findings prompted us to issue the latest directive with the DBM (Department of Budget and Management) to enlighten and inform LGUs and the public on the proper appropriation and utilization of the development fund,” Robredo said.

But he clarified that governors and mayors can still use the 20 percent development funds for the cost of labor and other related expenses incurred in the projects.

The Department of the Interior and Local Government (DILG) addressed common concerns of local chief executives over the usage of their 20 percent development funds, saying it can be paid for expenses that are “connected to or related with” the implementation of a particular development project.

During the DILG’s Tapatan Roadshow on Full Disclosure Policy held recently at the City Coliseum in Puerto Princesa City, governors and mayors raised their complaints and confusion about the usage of the development funds.

“For example, if an LGU is engaged in a road construction project, the cost of labor and other related expenses that would be incurred for that project can be charged to the 20 percent development funds,” Robredo said.

While it is specifically provided for under Section 287 of the Local Government Code (annual budget appropriation of no less than 20 percent of its IRA specifically for development projects), governors, mayors and barangay chairmen can use them for expenditures that are “connected to or related with” the implementation of a particular development project.

Development projects include construction or rehabilitation of evacuation centers, potable water supply system, evacuation centers, local roads or bridges, sanitary landfills, material recovery facility and public facilities such as multi-purpose halls; purchase or repair of area-wide calamity-related alarm or warning system and appropriate rescue operations equipment; and purchase and development of land for relocation of victims of calamities, among others.

The same DILG-DBM memo circular also said the items that are not related to or not connected with the implementation of development projects 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.

Robredo said President Aquino instructed the DILG to review the existing guidelines on the 20 percent development fund use to make it more responsive and to include calamity and disaster mitigation, preparation and response, as well as climate adaptation such as reforestation and urban greening.