Abalos: LGUs need confidential funds

MANILA, Philippines — Local government units (LGUs) need confidential funds as they regularly deal with peace and order problems in communities, Interior Secretary Benhur Abalos said yesterday.

In an interview with The STAR, Abalos said LGUs are allowed by law to have confidential funds as part of their peace and order and public safety plans (POPS-Plan).

“My opinion about this is as long as it is not abused and strictly used in accordance with the intention of peace and order, for me this is just fine. As long as it is not abused,” he said.

The former Mandaluyong mayor said the peace and order program of LGUs addresses a multitude of challenges, including crimes, terrorism and even threats to the environment and human security.

“As long as they follow the rigid procedure and requirements of the law, I think this confidential fund is needed on the ground. I myself have been there as mayor,” he said.

“If we are going to look at this, LGUs are confronted with these issues every day. If this is going to be used with the intention of the law and peace and order I’m really fine,” he added.

The head of the Department of the Interior and Local Government (DILG) said that local governments, which have peace and order as a priority concern, are allowed to have the confidential fund.

He said DILG memorandum circular 2022-118 that sets guidelines for the development and formulation of the POPS-Plan of LGUs allows confidential funds.

Abalos also cited a 2015 memorandum signed by the DILG, the Department of Budget and Management, the Commission on Audit, the Department of National Defense and the Governance Commission for GOCCs.

Under MC 2022-118, the confidential fund refers to the lump sum amount provided in appropriation ordinances for LGUs to be used for confidential expenses.

This fund should not exceed 30 percent of the total annual amount allocated for the local government’s POPS Plan.

Abalos said they would have the reports on the confidential fund checked when asked if all LGUs were able to comply with this limit.

Still, the DILG chief maintained that the accountability measures and safeguards are in place to ensure against abuse.

90% have CIF

While Abalos defends the need for LGUs to have CIF, Senate President Juan Miguel Zubiri said a majority of the 1,716 LGUs have them all along.

“People are looking at government agencies, but what about the LGUs? Let’s look into that. If you include all local government units, 90 percent have confidential funds,” Zubiri said in an interview with dwIZ. There are 82 provinces, 148 cities and 1,486 municipalities in the country.

“These are questions that can be propounded to the Department of the Interior and Local Government,” he added.

Zubiri said these funds are prone to abuse, especially if allocated at the local level rarely open to public scrutiny.

Asked by The STAR where he got the 90 percent figure, Zubiri said it was just his estimate. “But a majority of LGUs have CIFs, including municipal governments,” he said. “Most cities definitely have CIF.”

Just as the House of Representatives had agreed upon, the Senate would also realign the CIF allocation of civilian agencies with no defense or security mandate, according to Zubiri.

The funds, he maintained, would be reallocated to agencies tasked with security and defense matters like the Philippine Coast Guard and the National Intelligence Coordinating Agency.

Asked if the reallocation would affect the combined P650-million confidential funds for the Office of the Vice President and the Department of Education, Zubiri said no civilian agency would be spared.

Zubiri said he was glad civilian agencies such as the Department of Foreign Affairs and the Office of the Ombudsman have expressed willingness to let go of their CIF allocations.

“That’s a big deal. If we realign P50-million CIF of an agency, we can increase the P10-million intelligence fund of the PCG, instantly increasing its allocation six times,” Zubiri said.

Oversight

An oversight committee on CIF, which Zubiri heads, aims to submit a report on the proposed realignments in time for the plenary debates in November on the proposed 2024 budget.

Meanwhile, Albay Rep. Edcel Lagman branded as unconstitutional the creation by the House of Representatives of a  ”small committee” to study the realignment of CIF.

He admitted it has long been a practice in the House to establish a small committee to study amendments to a bill that had already been approved on third and final reading.

“Nobody is questioning it because it has long been a tradition in the lower chamber,” he noted in a radio interview.

Last week, the chamber approved the budget program for 2024 or House Bill 8980 without amendments. But a small group of House leaders was convened to work on the realignments.

Asked if such small group exercises transparency since talks are only among themselves, the lawmaker said “it is about time to question this system.” — Sheila Crisostomo, Marc Jayson Cayabyab