Bureau of Local Government Finance Opinion

December 2, 2011 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Rodrigo S. Riola City Treasurer City Hall Davao City Sir : Enclosed for your information is a copy of the letter dated November 2, 2011, of the Honorable Undersecretary of Finance and Officer-in-Charge, Atty. Carlo A. Carag, addressed to the Honorable City Mayor of that city, informing that the Department of Finance (DOF) cannot grant the request for clearance/approval to open and maintain a depository account with the Philippine National Bank (PNB)-CM Recto Branch, for the reason that the major government financial institutions, namely, the Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP) can fully support the banking services needed by that city, and that PNB is now fully privatized and is no longer a government financial institution. The DOF further advised the City of Davao to terminate within six months, upon receipt of the aforementioned letter, all existing accounts and fund placements with PNB, if any, and transfer the same to LBP and/or DBP, pending the release of the amended Department of Finance Order on the clearance/approval to open and maintain government depository account. Please be guided accordingly. HIcTDE Very truly yours, (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director