Governors ask Congress to exclude revolving fund for LGUS in ‘Bayanihan 2’

MANILA, Philippines — The League of the Provinces of the Philippines (LPP) on Friday urged Congress to exclude a fund intended for local government units (LGUs) from the classification of special funds under the proposed Bayanihan 2.

In a statement, LPP President and Marinduque Governor Presbitero Velasco Jr. said that the Municipal Development Fund (MDF) should be excluded from the classification of special funds to be used for the various response and recovery interventions from the COVID-19 pandemic” under the proposed “Bayanihan to Recover As One Act.”

The MDF, as per Presidential Decree 1914, is a special revolving fund for foreign assisted projects intended for LGUs.

Velasco, meanwhile, was referring to section three of the House and Senate version’s of the proposed measure, which states that “(a)ny un-utilized or unreleased balance in a special purpose fund declaring a public health crisis of national concern shall be considered to have their purpose abandoned for the duration of the health crisis.”

The Senate had approved a P140-billion package for Bayanihan 2, while the House of Representatives approved a P162-billion appropriation.

Since both houses of Congress approved the measure, the bicameral conference committee will settle the disagreeing provisions of the bills on Friday.

“We fully support the immediate passage of the Bayanihan 2, so we can jumpstart and revive our economy that has been badly ravaged by the COVID-19 pandemic,” Velasco said.

“But having said this, the members of the League are requesting Congress to specifically exclude the MDF from the classification of special funds to be used for the various response and recovery interventions from the pandemic,” he added.

Bohol Governor Arthur Yap, in a position paper, said the MDF “was established for the noble purpose of promoting self-reliance of LGUs for their economic development programs.”

“We all know that winning the battle against COVID-19 goes far beyond health interventions. The LGUs need these types of low-interest loan facilities for COVID-19 as well as other priority programs,” Yap said.

“We should focus our recovery and rehabilitation efforts toward establishing a better normal that considers all aspects of human development while ensuring that we keep track of our Sustainable Development Goals, which is key to a holistic, whole of government, the whole of society approach.” he added.

EDV