Bureau of Local Government Finance Opinion

June 27, 2011 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully forwarded to the Honorable Roberto B. Tan, Treasurer of the Philippines, Bureau of the Treasury, Department of Finance, Palacio del Gobernador , Intramuros, Manila, the herein follow-up letter dated May 13, 2011, of Municipal Mayor Shirlita Y. Chong of Liloan, Southern Leyte, relative to the disapproval of the application for renewal of the fidelity bond of Mrs. Juliet O. Morano, Municipal Treasurer of said municipality by that Bureau's Regional Office No. VIII, Tacloban City, because of pending criminal case for Malversation of Public Funds against her with the Sandiganbayan, allegedly as per the provisions of item 7.2.1 of the "Revised Omnibus Regulations Governing the Fidelity Bonding of Accountable Public Officers," under Treasury Circular No. 02-2009, dated August 6, 2009. In the letter dated January 17, 2011, this Bureau referred the matter to that Bureau for reconsideration based on the following grounds: "1. Neither item 7.2.1 nor any other items under the Revised Omnibus Regulations on the fidelity bonding of public accountable officers state that mere pendency of an administrative and/or criminal case against an applicant will automatically cause the denial or disapproval of the application for renewal of the bond. Rather, there is merely the requirement to attach pertinent documents on any pending administrative and/or criminal case to the bond application; aSACED 2. The local treasurer is ultimately accountable for local funds and properties. Such disapproval of the application for renewal of bond will disrupt local treasury operations which practically paralyzes the entire local government operations, owing to the inability of the local treasurer to perform his/her duties and functions for lack of fidelity bond." With due respect, it is stated with emphasis that the responsibility of the local treasurer basically pertains to the custody and collections of local funds and revenues, so that, sans the fidelity bond, the local treasurer will be restrained from discharging such responsibility, which may result in the disruption of the entire local government operations. This is the ultimate concern of Municipal Mayor Chong. This Bureau is quite apprehensive that the denial for the renewal of fidelity bond of subject Municipal Treasurer might set a precedent adverse to LGUs. Hence, this earnest request for immediate and favorable resolution on the matter. (SGD.) MA. PRESENTACION R. MONTESA, CESO III Executive Director