Propriety of Retaining or Withdrawing All Funds Deposited with PNB-Oroquieta City

September 7, 2012 DOF OPINION Hon. Herminia M. Ramiro Office of the Governor Province of Misamis Occidental Attention: Mr. Ricardo M. Lumantas Legal Office Dear Governor Ramiro : We write in reference to the letter dated 24 August 2012, written by Mr. Ricardo M. Lumantas, Legal Officer of the Province of Misamis Occidental, on behalf of the Honorable Governor of that Province, requesting for an opinion as regards the propriety of retaining or withdrawing/transferring all the funds presently deposited with the Philippine National Bank, Oroquieta City branch office. Kindly be informed that although Department Order No. 27-05, dated 9 December 2005, allows Provincial Treasurers to deposit their funds and maintain depositary accounts with the Philippine National Bank (PNB), such allowance is only by way of exception and subject to the prior approval of the Department of Finance. PNB, together with the other banks listed therein, are included only by virtue of the ownership by the Government of shares of stock therein, or a legal provision which allows such banks to be depository banks. In the case of PNB, the Government had ceased to own shares of stock therein. We emphasize that the general rule to be followed is that all Provincial, City, and Municipal Treasurers shall deposit their funds and maintain depository accounts with either the Land Bank of the Philippines or Development Bank of the Philippines. Other banks are authorized to be depository banks only by way of exception, and subject to the prior approval of the Department of Finance. DHETIS Please be guided accordingly. Very truly yours, (SGD.) CARLO A. CARAG Undersecretary Revenue Operations and Legal Affairs Group