DILG defends right to quiz local gov’t budgets, disclosures

MANILA, Philippines—The Department of Interior and Local Government (DILG) asked the Supreme Court to dismiss for lack of merit the petition filed by Camarines Sur Governor Luis Raymond Villafuerte Jr. questioning the memorandum orders issued by the DILG in connection with local budgets and disclosures.

In a 52-page comment submitted to the Supreme Court on June 1, DILG Secretary Jesse Robredo, through the Office of the Solicitor General, said the Memorandum Circulars (MCs) issued by the DILG are constitutional, contrary to Villafuerte’s arguments.

Villafuerte was referring to MC No. 2010-138 on the use of the 20 per cent component of the annual Internal Revenue Allotment shares; MC No. 2011-08 about the Strict Adherence to Section 90 of Republic Act 10147, or the General Appropriations Act for 2011, and MC No. 2010-83, tackling the full disclosure of local budget and finances, bids and public offerings.

Villafuerte argued that the MCs violated the principles of local autonomy and fiscal autonomy enshrined in the 1987 Constitution, as well as the Local Government Code of 1991. Villafuerte said the MCs likewise encroached on the legislative powers of Congress.

Local government units are required to fully disclose their incomes and expenditures, and post the information on their respective websites, under the memorandum circulars. Non-compliance will be sanctioned.
The DILG, through the OSG, pointed out that they are merely implementing what is already stated in the law.

Section 90 of the General Appropriations Act of 2011 merely echoed Section 352 of the LGC regarding the full disclosure of government expenditures in three publicly accessible, and conspicuous places in the LGUs. Section 90 only adds the posting of government expenditures on the websites of the respective government offices.

“The required publication in the LGUs website is germane to the purpose of the law which is to provide detailed information of the manner and use of the LGUs IRA, as well as status of the programs and projects that are being implemented, Contrary to the petitioner’s pretensions, Congress is fully clothed with power to impose additional restrictions and conditions on the use and disbursement of IRA in the appropriations bill,” the government lawyers said.

They added that “inherent in the power of appropriation is the power to specify how money shall be spent; and that, in addition to distinct “items” of appropriation, the legislature may include appropriations bills qualifications, conditions, limitations or restrictions on expenditure of funds.”

The government lawyers noted that posting of government expenditures is essential to the principles of transparency and accountability under the Constitution.

Robredo, they pointed out, did not encroach on the power of Congress because the memorandum circulars were considered “executive issuances aimed to regulate internal affairs and/or interpret regulations for compliance by those under his general supervision, such as the LGUs.”

The DILG chief added that he did not usurp Congress’ powers to order local government units to be fully transparent in their income and expenditures.

“The power of Robredo to issue memorandum circulars, orders and similar issuance are not legislative powers but executive issuance aimed to regulate internal affairs and/or interpret regulations for compliance by those that are under his general supervision,” the OSG said.