DILG Legal Opinions 201131 0f79dacaa3

8/13/2019 DILG Legal Opinions 201131 0f79dacaa3

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RePublic of the PhiliPPinesDEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENTA. Francisco Gold Condominium II Bldg, EDSAcorner Mapagmahal St., Diliman, Quezon City

OFFICE OF THE UNDERSECRETARY FOR LOCAL GOVERNMENToPrNroN No. 9t s. 2010

O4 Jurre 2O lOMS. NENCITA N. COSTELOCLCTOODILG Region IV-ADagmarinas, CaviteDezrr Ms. Costelo:Tlrispertainstoyoulfequestseekingclarilicationonl.heperceivedconflictbetween DILG Opinion No. 66, Series of 2oo9 issued on 15 Decetnber' 2009wherein w. opinJd that a Plulong Bzrrangay (PB) is no longer required to posta fidelity boni, zrnd Treasury circular No. o2-2OOg which enjoins thc PBs topost c,ne. Your letter.".1.,""i w:rs forwerrclc


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public oJJicers pLltsttltll to Ilrc prouisions of the Pubtic Bonding LauF;and[c) Treasury Office Order lilo' O9-2OO9 issrLecl on O I October 2009prescribing tne Cujtletines'Ib FcLcititate Cotnplia nce With lYeasuryCircular No O2-2O09, Prescribing'fhe fleuised Regulotions GouenurtgThe Ficletity Borulirtg Of Accortriuble Public OJJicers'

Treasury Circul:u No' O2-2009 issuccl by the Bureau of Treasury covers'^-J"s-irt "i rhi"e", '"u.,v oS1t"o', setd::ut ^::.:et7uee 9f a local g,ouernmen.tunit tuhose duttes p.,rn l ttr- ,eqnire ;rosser-ss jon, cistod.y ' . or , control " ,:i:,1'gouernment funds- a nd p'"upt'ti"' "''Ltu'Li'g . brtt .,not limited to prouinctalqouernors, cfiA arlct *un'"'fi'-t ttna1ors' proutJciat' city ' ntunicipal

und barartgctyii.o"ur"r", oid punong barcLngags xxx'tThe trasis of this coveragc was the same DILG Memorandum Circr-rlar (MC)99-186 and Section 305(f)r"n1 the LocaLi Government Code of 1991 (Repubiic ActNo.7160).There being no repe:rl, amendtnent nor rcvision of DILG MC 99-186' thedirective set forth therern enjoining all Punong Barangays (and l]qang3yTreasurers) to post lideliiy to"a", titt"t be,complied with' as the said circrtlar"ontin.."" io te in full force arnd effect as of date'For your information ancl guidance'

Copy Funished:RD Josefna E. Caslilla-GoD|LG Catabazon Region' FTI Complex,Efrcn M. EchaviaPrcvincial DitectorDILG- CaviteLegal:55:itl"s

Taguig CiIY

'?2.0 Purpose, Treasury circular 02-1009: l;l"ffi':AAJ:fr.lre localsove, rtmenr. unit.rrvrrose dutre.s l:'Tl:-l:ll':':Jfi.X'"'.".','JiJ,:l :::."l"tJtlocal funds shall be properly Douoed, and such officr shall be accountable and responsible for said funds",',a f- in" iir"l*ping the;eof in conformity with tlre provisions ol law'

Very truTY Yours,

Undersecretary


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Er: tj tJ l'lE ''f-lU B

Bn :F-l \-318''1 JqB lt)6 \:rffiliilfi.ij'rr-*lirffiI rri,in;i. in g ii'q,H H-"Republic of the Philippines sr$liAl trF E 1. 1t'so1r:DEPARIMENI OF THE INTERIOR AND LOCAL GOVERNIh)1EN;L--' X:\p1ttv\..)A. Francisco Gold Condominium ll Bldg, EDSA 'l Ir' i1 .

corner Mapagnrahal St., Diliman, Quezon City ;tfli fo 'OF'F'TCE OXI'i"IiIIi IJNDM.RSE.CIiil I AfIY

0l [fi tu]tjfi ll['it{ li.n' - =-6'i'='19' S{]n'r*-December |5. 2OO9CONRADO P. DELOS SANTOSPunong BarangayBarangay Bucana SasahanNaic, Cavite / nv ,,__,a'*.;t -t6.'3/L ),Dear Punolrg Barangay Delos Santos:

This pertains to your letter seeking our legal opinion regarding yourposting of fidelity bond.You stated in your letter that your fidelity bond was not sigrred byMayor Efren C. Nazareno sittce you ltave a pendillg case. Hence, you tlow

pose a query on whether or trot it is compulsory for the Punong Barangaylike you to post a fidelity bond.In reply thereto, we are of tlte considered view that only appointiveofficials wlro are in custody of public futrds, e. g, barangay treasurer arerequired to be bonded before they can disburse funds. This conclusion ispursuant to Sec. 2.1 vis-d-vis Section 4.'1 ol Treasury Order No. 95-01-95regarding the Revised Regulations Govertring the Fidelity Borrding c -Governnrerrt Officials and Enrployees, to wit:

"Section 2.0 Coverage2.1 Except as otherwise herein provided all officials andemployees of National Governnrent Agencies (NGAs), GovernmentOwned-and Controlled Corporations (GOCC). Local GovernmenlUnits (LGUs), Self Governing Bonds and Commissions and allotlrers concei'rred shall, ,rvhenever the duties performed permit orrequire the custodv of fU d.S prope rtv/accou nlable forms, becovered by a fidelity bond. (unclerscoring ours)"Secticn 4.0 PFOCEDURE FOR BONDING4.1 Appointqp4l or lawful accession by any person to abonded or bondable position or office, shall be notified immediatelyby the agency to the BTr FE lV of the province or region where thq

eppointee is assiqned." (underscoring ours)Sirrce the Purrong Barangay is not in custody of public funds rreitheris he an appoirrtive official, the aforesaid Treasury Order therefore is not

t-t- BVI-itl96^OAT


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applicable to salrosition. 'Th Mosr that the Prt ?bng Bararrgay has oversaid funds is cortrol because its disburserneut is sulriect to his approval.This contention is supported by $ection 344 of the Local GovernrnerrCode, which provides:"Section 344. Certification on, and approval of Vouchers,

XXX XXXVouchers and payrolls shall be certified to and approved byihe head of the department or office who has aclministrative controlof the iund concerned, as to validity, propriety, ancl legality of theclaim involved. Eicept in cases of disbursements involving regularrecurring administiative expenses such as payrolls for regulir orpermanent employees, expenses for lights, water, telephone andtelegraph services remittances to government creditor aqenciessuch as the GSIS, SSS, LBP, National printing Office, procurernentService of the DBM and others, approval of the disbursementvoucher by the Local Chief Execulive lrimself shall be requiredwhenever local funds are disbursed. xxx"

The above'rrrentioned provision categoricafiy dectared that thePunong Barangay has "adnrinistrative control,, of said funds. Control isdefined as "the power of an officer to alter or nrodify or set aside what asubordinate officer has doue in the perfornrance of his duties and tosubstantiate th iudgrnent of the fornrer for that of the latter. (Mondaiio vssilvosa[97 Phil. 143]. Nothing in said definition connoted ttrat such powerof control includes the right to l

DILG Legal Opinions 201131 0f79dacaa3

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