f';U&4i&'t
R8PUI)li •.: of 111(,F'illllpplnfls
DEPARTMENT OF BUDGET AND MANAGEMENT
LEGAL SERVICE
", :'\'111111.:1
:rl
d,l\ •
i "'(\,1
',jr
1r
:'i/ff1l'
,'I!I.l'
"'1;/
h"
j
I,d
;.
.""
,''':
. May 23, 2016
.1.11'"
',I
'.
III r'-Illilf
':'h.1 .'
I
I"
,1
e
.
:\
'~
.,.~~
MEMORANDUM
FOR
The Director,
BMB-GGS
FROM
The Director,
LS
SUBJECT
Tourism Promotions Board (TPB) - Request for Clarification
on the National Government (NG) Support under Republic
Act (RA) No. 95931
1.0
This refers to your Memorandum dated May 19, 2016 requesting clarification on
whether NG support may still be provided to TPB given that the minimum
requirement of five (5) years annual provision under Section 55 (b) of RA No. 9593
has already been complied with.
Section SS (b) of RA No. 9593 reads:
"Section 55. Tourism Promotions Fund. - The proceeds of the following shall be
placed in a special Tourism Promotions Fund to finance the activities of the TPB:
xxxx
(b)
!~
I":
1,
i,
'
An appropriation from the national government of not less than
Five hundred million pesos (Pnp500,OOO,OOO.OO)annually for
at least five (5) years from the time of its constitution; xxxx"
2.0
As represented, the total amount of Two Billion Five Hundred Million Pesos
(2,500,000,000.00) was provided under the General Appropriations Act from Rscal
Years 2012 to FY 2016. This amount is placed under the Tourism Promotions Fund, <.
a special account in the general fund authorized under the same law to finance the
activities of TPB2.
3.0
The above-quoted Section expressly state that the NG budgetary support is
mandatory only for five (5) years, given that this is the minimum requirement.
After said period budgetary support may still be provided, subject to favorable
recommendation from your end.
An Act Declaring a National Policy for Tourism as an Engine of Investment, Employment Growth and National Development, and
Strengthening the oepartment of TouriSm and Its Attached Agendes to EffectJvely and Efficientfy Implement that Policy, and Appropriatlr:g
Funds Therefor
2
SectIon 55. )(}(XX 10 no case shall promotions and markeUng activities receive less than fifty percent (50%) of the annual
utilization of the fund. Not more than ten percent {lO%) of the fund shall be used for all other administrative and operating expenses of
the TPB. The unalloca(ed portion of the fund shall be earmarked by the TPB as follows:
(a) For use by the TIm In the development Of TElS;
(b) For the Department, to enhance Its programs for development planning, heritage preservation and Infrastructure
development, and manpower traIning induding, but not limited to, scholarshIps for trainIngs abroad, among others; or
(c) For such other purposes as may aY.'ltrlbute to the development of U1e to\Jiism Industry. Portions of the net
fOCOm€of govemmentcarpo:-atiol15
and other enterprises provided under thIs section due the TPB shaif.be remitted directly
tilereto on a quartel1y basis,
-
-
_ _,--~-_._-----'----------------~
..
A
rI
I
I
May 20,2016
BNB-SPJ5
}l~U~
MEMORANDUM
15:0<'1 MAY•.0, 2016
FOR
The Director, BMB-SPJS
.FROM
The Director, LS
SUBJECT
Department of the Interior and local Government (DILG)Office of the Secretary (DILG-OSEC)-Request for
Clarification on the Allocation for Senior Citizens and
Persons with Disability (PWD) in the Budget
1.0
This pertains to your Memoranduml relative to the letter2 of the Philippine
Commission on Women, seeking clarification on the correct percentage to be
allocated for the programs and projects for the benefit of senior citizens and PWD.
2.0
We quote hereunder Section 36 of the General Provisions in Republic Act (RA) No.
10717 or the FY 2016 General Appropriations Act (GAA):
nSection
36. Programs
and Projects
Related tD Senior Citizens
and Persons with
Disability.
All agencies of the government shall formulate plans, programs and projects intended to
address the concerns of senior citizens and persons with disability, insofar as it relates to their
mandated functions, and integrate the same in their regular activities.
Moreover, all government infrastructure and facilities shall provide architectural or structural
features, designs or facilities that will reasonably enhance the mobility, safety and welfare of
persons with disability pursuant to Batas Pambansa Big. 344 and R.A. No. 7277."
3.0
It is clear from the above provision that there is no required percentage allocation
for programs and projects relating to senior citizens and persons with disability.
What the law requires is for agencies of the government to formulate plans,
programs and projects intended to address the concerns of senior citizens and
PWD, and only insofar as this relates to their mandated functions.
4.0
Moreover, upon perusal of DILG Memorandum Circular No. 2014-593, the one
percent (1%) allocation mentioned therein cited Department of Budget and
Management-Department of Social Welfare and Development Joint Circular No.
2003-014 as basis, which was in turn issued to implement Section 29 of RA No.
9206 or the FY 2003 GAA. Verily, said issuances, insofar as they refer to the
implementation of the provisions in the budget law for FY 2003, is no longer
applicable at this time.
dated March 182016
dated January 25 2016
Institutionalizatioll and Strict ImfJlementalloil of General Appropriations Act Provisions on Ule Allocation of AgencY Budget for
Programs,
Projects,
ActiVities
and Services
for Senior
Citizens
and Persons
with
Disabilities
.•
Implementing Guidelines for section 29 of the Generul Appropriations
Act for FY 2003 Entitled "Setting Aside One Percent of
Government Agency Budget for Programs/Projects Related to Senior Otizens and The Disabled
-...•.
5.0
Finally, allow us to note that 2nd paragraph of Section 2.2.95 of the Local Budget
Memorandum No. 706, s. 2015 states that local government units shall include in
their annual budget programs, activities, and projects for senior citizens and PWD
pursuant to RA No. 99947, amending RA No. 74328 and RA No. 94429 amending
RA 7277.
,.
,
.
.'.
2.2.9.
Finally,
the FY 2016 Annual
Budget
of
lGUs
shalllik.ewise
include
PPAs that can be attributed
and bLJilHn
withlfl
the budget
level for the following:
Gender'
and Develoj)ment
(GAD)
pursuant
~o R.A. No, 7192,
R.A. No. 9710
and POV~DlLG.NEDA.OBM
July 5, 2013 (Guidelines
en the Localization
of the Magna carta of women);
Senior Oi:izens and Persons with DisabiHties pursu~nt to RA No. 9442 amending
FY 2016 Internal Revenue
Expanded
Senior
Citizens
Atlotment (IRA) Leve1 and Otlte •. local Budget Prepanltlon
JMC No. 013-01
dated
R.A. No. 7277;'fl:X
Matters
Act of 2010
Expanded Senior Citizens Act of 2003
Act Amending Repubflt Act 7277, Othenvlse
I:.nown as the Magna carta for Disabled Persons and Other Purposes
2
Republic of the Philippines
DEPARTMENTQF BUDGET AND MANAGEMENT
LEGAL SERVICE
Ground Fir. DBM Bldg.1, Geneml Solano St .. S<ln Miguel. Manl, '
Contact No 791-2000 loc. 1118 al1d 735-13599 (tel.!",)
~
\lP
May 19, 2016
MEMORANDUM
i
,""r"
FOR
The Directorl BMB for Good Governance
FROM
The Director, LS
SUBJECT
The Authority
of Freeport Area of Bataan (AFAB).Clarification on the Effects of the Commission on Audit
(COA) Disallowance Case of Philippine Economic Zone
Authority (PEZA) to Former Bataan Economic Zone (BEZ)
Employees Absorbed by AFAB
LO This refers to your Memoranduml seeking legal opinion on whether the decision of
the Supreme Court (SC) in the case filed by AFAB will affect BEZ employees who
were absorbed in AFAB.
1.1
On July 2012, COA issued a Notice of Disallowance to PEZAon the grant of
salary increase to its employees. After appealing the matter to the COA
Commission Proper, PEZAelevated its appeal to the Sc. As of April 8, ~016J
the SC has not yet rendered any decision on the matter.
1.2
Pursuant to Section 282 of Republic Act No. 97283, qualified and necessary
personnel of BEZ were absorbed by AFAB.
2.0 At the outset, considering that the case is still pending before the SC, 4t is
premature to ask for the implication of a decision that is yet to be promulgated.
Moreover, since we. are not a party to the case, we are not privy to the facts and
arguments stipulated and could not therefore give any legal advice thereon. The
BEZ employees should therefore seek the assistance of a private legal counsel to
guide trem in the proper course of action to take if they suspect that their rights
may be affectea by any decision of the Sc.
date AprilS, 2016
Section 2B. Transitory Provisions, . All properties, assets, funds. rights, obligations, and liabilities are herebytransferretd to the
for the liabilities that are not property accounted for as per the tE!poltS coming from the Comm;sslon on Audit. whlch shan be
th2 PEZA.
The AfAS shall be responslbfe for the operations, admlnlstratlon, management and development of the FAB. The AFAB shall effect: the
transfer herein provided m a manner that will ensure the least disruption of ongoing programs of the BEl. The quaBt'ied and necessary
personnel of the BEZ shatl be transferred to and absorbed by the AF AS: Provlded;That
the tenure, rank, salaries and pr1v;l~es of such
personnel are not reduced or adversely affected. The personnEl whose seNices are not retained by the AFAB shall be tJranted sepalClt10n
pay and retirement and other benefilS they are. entitled to under existing laws but in no case shall the separation pay be less than one (1)
month for every year of service.
In the period prior to the actual assumptton of duties by the AFAB, all officers and employees of the BEZ shall continue to exerdse their
functions and discharge their duties and responsIbilities. The BEZ shall be deemed abolished upon the organization of the AfAB.
,
otl1erwise known as "freeport Area of Botaan (FAB) Act of 2009"
AfAB
except
retained
by
",
Reoubllc
Of t~e Philippines
DEPARTMENT
OF BUDGET
LEGAL SERVICE
"';:-'1'..•-,('1 ~I
•..
'.~;",ta.-~~
"'.j"
Slj~~.
;:?(\r-rgl
::;ol::;n(".St Sa1", MIQUP,'I.
-2;....
~~S:cr: .". q ~nd 735~,q5!?9 IteIPf~x.
>~A,1
--:.
AND MANAGEMENT
\:I;mll;'~
May 18, 2016
MEMORANDUM
1'1:53 HAY HI, 2016
FOR
The Director, BMB-HDS
FROM
The Director, LS
SUBJECT
National labor Relations Commission (NlRC)-Request for
Comments on the Creditable Government Service of Former
NlRC Commissioner Romeo C. Lagman
8NS
"JI"
HL~'rA/j !lE'.JELOP!'IEHT
1.0
This pertains to your Memoranduml
seeking comments relative to the request2 of
former NLRC Commissioner Lagman to give due credit to his government service as
part-time instructor in the Polytechnic University of the Philippines from the years
1968 to 1978 and those rendered after his retirement from NLRC3, for entitlement to
full monthly pension under Republic Act (RA) No. 9104, as amended.
2.0
Factual antecedents:
2.1
Former NLRC Commissioner Lagman retired from the NLRC on March 3J 2006
under RA No. 910, with only 19.113 years of government service based on his
letter dated November 29, 20135, short of the required twenty (20)6 years to
be entitled to full retirement benefits under said law. Per representation?, he
was paid a lump sum retirement gratuity benefit equivalent to five (5) years.
2.2
Upon the amendment of RA No. 910 by RA No. 99468, which effectively
reduced the length of service to fifteen (15) years to be entitled to full
retirement
benefits
with
pro-rata
monthly
pension,
fonner
NlRC
Commissioner Lagman filed an application for monthly pension to avail himself
of the benefits of said amendatory law. This was referred to our Office for
legal opinion.
dated March 22, 2016
in letter dated January 28, 2016
Presidential Assistant with the rank of Undersecretary at the Office of the President from March 4, 2006 to June 30,
2007; Undersecretary of the Department of Labor.and Employment from July 1, 2007 to June 30, 2010; Board Member of the
Philippine Domestic Construction Board of the Department of Trade and Industry from November 10, 2008 up to present
"
An Act to Provide for the Retirement of Justices of the Supreme Court and of the Court of Appeals, for the Enforcement
of the Provisions Hereof by the Government Service Insurance System, and to Repeal Commonwealth
Act Numbered Five
Hundred and Thirty Six
S
addressed to Secretary Florencio B. Abad
,
Section 1 of Republic Act No. 910 provides "X x x And when a justice of the Supreme Court or of the Court
Appeals,
a judge of Court of First Instance. Industrial Relations, Agrarian Relations, Tax Appeals, Juvenile and Domestic Relations, ora
dty or municipai judge has attained the age of sixty years and has rendered at least twenty years of serJice in the Government,
the last five of which shaJi have been continuously rendered in the Judiciary, he shaJi likewise be entitled to retire and receive
during the residue of his natural iife, also in the manner hereinafter provided, the salary which he was then receiving. X x x"
,
as stated in letter dated November 29, 2013 of former NLRC Commissioner Lagman
•
An Act Granting Additional Retirement, Survivorship, and Other Benefits to Members of the Judidary, Amending for
the Purpose Republic Act No. 910, as amended, Providing funds Therefor and for other Purposes
0:
,
,~
.
2.3
In LS Opinion NO.5, S. 20149, we opined that former NLRC Commissioner
Lagman is not entitled to the amendatory provision under RA No. 9946because he retired prior to the effectivity of said law on January 10, 2010.
However, on May 8, 2015, the Department released his monthly pension
which is computed pro-rata based on his 9.44105 years in service, excluding
those rendered as part-time instructor in the Polytechnic University of the
Philippines from the years 1968 to 1978 and those rendered after his
. retirement from NLRC.
2.4
On October 6, 2015, your Office again referred the request oUormer NLRC
Commissioner Lagman for full monthly pension under RA No. 910, as
amended by RA No. 9946, and likewise sought legal guidance on the
subsequent action to be taken considering that his monthly pension was
previously released contrary to the above opinion. In response, we advised
that your Office is in the best position to explain the release of the subject
pension benefits.
2.5.
On December 18, 2015, the Civil Service Commission (CSC) promulgated
Resolution No. 1501497 relative to the accreditation of service of former NLRC
Commissioner Lagman covering the period from 1968 to.1978 and those
rendered after his retirement from NLRC.The CSCruled that there is no need
to accredit the services sought to be accredited because they are all covered
by valid appointments. The CSCfurther stated that the proper remedy is for
him to coordinate with NLRCand this Department in order to reflect the total
number of years of his government service.
3.0
Given the pronouncement of the CSCin its Resolution No. 1501497, it is imperative
for your Office to validate the number of years in service of former NLRC
Commissioner Lagman if he indeed completed the DNenty (20) years service
requirement under RA No. 910. It may be clarified that we can only provide opinion
on legal issues and is not in the position to validate the years of his government
service.
4.0
If upon validation, your Office determines that he has completed the twenty (20)
years service requirement, then he may be entitled to full monthly pension as
provided under Section 310 of RA No. 910, having complied with the twenty (20) years
of government service provided in said law.
dated February 26, 2014
SecbDn 3. Upon retirement a Justice of the Supreme Court or of the Court of Appeals shall be automatically enbtled
to a lump sum payment of the monthly salary that said Justice was. receiving at the time of his retirement for five years, and
thereafter upon survival after the expiration of this period of five years, to a further annuity payable monthly during the residue
of his natural life equivalent to the amount of the monthly salary he was receiving on the date of his rebrement.
10
DEPARHJlENT OF BUDGET AND MANAGE:M:~,
LEGAL SERVICE
t
D8M
BMB-A
May 16,2016
RECEIVED
MEMORANDUM
F
I
"
FOR
8Y:~>'
The Director,
BMB-EDS
FROM
The Director,
LS
SUBJECT
Department of Trade and Industry-Philippine
Center (PTTC)-Establishment
of a Revolving
.
O,kJ lblJ.o/~=I
-
- .. - ~~
Trade Training
Fund
1.0
This refers to the letter of PITe Executive Director Nestor P. Palabyab to the
undersigned dated f\1arch 18, 20161 requesting for legal advice on the creation of a
revolving fund sourced from rental of facilities to defray the expenses for the
maintenance of facilities and equipment. At present, said income is deposited to
the Bureau of the Treasury as income of the General Fund.
2.0
Legal comments:
2.1
The applicable law for creation of revolving funds is Section 10 of the
General Provisions CGP 10'') under Republic Act (RA) No. 10717, to wit:
Sec. 10. Revolving
Fund.
Revolving funds shall be established and
maintained only if expressly created and authorized by law or this section.
Receipts derived from the following may be constituted
fund and made available for the purposes stated:
into a revolving
(a)
Rentals for the use of buildings
and facilities
or from
fees imposed for board and lodging to be used for the MOOE or
Capital Outlay requirements
of said buildings
and facilities,
subject
to any guidelines issued by the agency concerned and to budgeting,
accounting and auditing rules and regulations; and
(b)
Other business-type activities including sale of products, which
are authorized by law or by the Permanent Committee to be utilized for the
operational expenses of said business-type
activity, subject to any
conditions prescribed under the special provision of the agency concerned
and the rules and regulations as may be prescribed by the Permanent
Committee.
Revolving funds shall be separately recorded and deposited in an
authorized government depository bank, and considered self-perpetuating
and self-liquidating.
All eligible obligations or expenditures incurred for the
operations of the foregoing activities shall be charged against the revolving
fund. In no case shall said fund be used for the payment of discretionary
and representation expenses.
Disbursements or expenditures by agencies in violation of the above
requirement
shall be void and shall subject the erring officials and
employees to disciplinary actions in accordance with Section 43, Chapter 5
Receivee
byt..S on January 27, 201 ~
-
--
---
----------------------------
and Section SO, Chapt,~r 7, Book VI of E.O. No. 292, and to appropriate
criminal action under existing penal laws,
The agency concerned shall submit to the DBM, copy furnished the House
Committee on Appropriations and the Senate Committee on Finance, either
in printed form or by way of electronic document, quarterly reports on
income and expenditure. The head of the agency concerned and the
agency's web administrator or his/her equivalent shall be responsible for
ensuring that said quarterly repOits are likewise posted on the agency's
website. (Boldface supplied)
2.2
GP 10 clearly states that income from rentals for use of buildings and
facilities may be constituted into a revolving fund with the "specific purpose
of use for maintenance and other operating expenses and capital outlays,
Thus, the income of PTTCfrom rentals may be constituted into a revolving
fun'd for the maintenance of the facilities and equipment found therein.
2.3
PTTC may likewise be reminded of the following conditions for the
establishment and use of revolving fund: (i) it shall be separately recorded
and deposited in an authorized government depository bank, and
considered self-perpetuating and self-liquidating; (ii) use of the fund for the
payment of discretionary and representation expenses is not allowed; and
(iii) submission and posting of quarterly reports on income and expenditure.
Disbursement Or use in violation of the aforementioned requirements shall
subject the erring officials or employees to the appropriate disciplinary and
criminal actions under the law.
3.0
Inasmuch as the request involves the actual creation of a revolving fund, we are
referring the same, together with our comments, to your Office for appropriate
actiBi .
,/
/
/
t
--_._-
-
-_._----------------
I
D&par1m&i1! (.f Budget and Mai1agement
IOj [g @r;U\!lj] fnI
U'u MAY 1 3 2016 ~
;-
OFFIC
I
OF USEC. J. B. ABUEL
Sy:
May 13, 2016
MEMORANDUM
FOR
The Director, RO CAR
FROM
The Director, LS
SUBJECT
Proposed Enhanced Budget Operations Manual (BOM) for Local
Government Units (LGUs)
LO
This refers to your ~1emorandum dated October 12, 2015, which we received only on
April 19, 2016, requesting our comments on several issues in preparation for the
proposed enhanced Bot"! for LGUs.
For ease of presentation,
Budoet Preparation
2.0
~
~
w !:::
z
~,.... .:::)
~
<I~
1-20
Z<lO
W:EU
~c ~
,~:i
a
with our responses
lrF;I'1'CEHTRAL RECORDSllMSIOH
16:18MAY 13,2016
Receiued
~J:
.~
-he unappropriated surplus of the preceding year or government equity be a~~urce
nd for a supplemental budget? Govemment equity is an unappropriated surplus and
of the free portion of an LGU's beginning balance. In case of a negative answer, can
be a ground for declaring the supplemental budget inoperative'
CD:E -::
O~-
Pbase
I.
.
C2'2:
::) 11.,; .:>
•••• II}
we will be stating your issues together
>CD
ii
Res/!lonse:
~9P~r Section 321 of Republic Act (RA) No. 71601, the enactment of a supplemental
O:::_._~ Cb-,,-"-,-~get
should be supported by funds actually available as certified by the local treasurer.
Clarifying the preceding provision, Article 417 of the Implementing
Rules and Regulations
of RA No, 7160 defines funds actually available as the amount of money actually collected
as certified by the local treasurer at any given point during the fiscal year which is over
and above the estimated income collection for that point in the year. 1'4oreover', funds are
likewise deemed actually available when there are savings, which is the balance of an
appropriation after the purpose which it was appropr'iated has already been accomplished
or deemed abandoned.
Based on the above, the term funds actually available embraces tvvo categol-ies, First, the
term refel-s to excess income actually collected as certified by the local treasurer. Second,
funds sourced from savings. In both cases, such sum of money must be available and
actual, i.e., real or substantial as opposed to something which is merely theol'etical,
possible, potential or hypothetical.2
The local Government Code of 1991
Block's I.aw DictionalY, 6'" ed
Ii\EiiD\Department 01 Budget and Management
~
Public ElpenditUTe ~anagement Bureau
~/aoya/
s,k¥11me:
Received by:
Dale:
~
q:,If?L~
Thus, if by unappropriated surplus and government equity you mean any of the
above described sources, then the same may be sources of funds for a
supplemental budget.
3.0
Budget Authorization Phase
3.1
Issue:
Are allowances and other benefits allowed to be paid in case of a reenacted
budget?
Response:
Salaries and wages of existing positions, statutory obligations and essential
operating expenses are deemed reenacted under Section 3233 of RA No.
7160. All of these are necessary for the continued basic operations and
existence of an lGU. Following the nature of the enumerated items that are
deemed reenacted, the phrase "salaries of existing positions" should be
construed to cover all authorized PS for existing positions in the preceding
year. To construe "salaries" in a limited sense will deprive an employee with
an otherNise authorized allowance or benefit, which could not have been
the intendment of the law. Hence, as long as the PS item is part of what
was authorized and appropriated in the preceding year, the same are
deemed reenacted. Payment is of course subject to compliance with the
conditions and requirements, if any, set forth under the law.
3.2
Issue:
When the item reenacted, which corresponds to the item vetoed, has a
higher appropriation than that vetoed and the income cannot SUPPOlt the
same, which amount of appropriation should be considered? The reenacted
or vetoed item?
Response:
Section 3234 of RA No. 7160 is likewise instructive. In case the estimated
income is less than the aggregate reenacted appropriations, the sanggunian
, concerned is authorized to make the necessary adjustments to ensure the
reenacted appropriations is supported by income.
)
Section 323. Failure to Enact tile Annual Appropdations. - In case the sanggunian concerned fails to pass the
ordinance
authorizing
the annual cpprcpriations
at the beginning
of tile ensuing flscall'ear,
it shall continue
to hold SEssions.
without additional remuneration for its rnembers, until such ordinance is approved, and no oi:her business rna'! be taken up
during sucl, sessions. If the sanggunian sti!1 fails to enact such ordinance after ninel'y" (90) clays from the beginning of lhe
fiscal year, the ordinance authorizing tile appropriations
of the preceding ;'ear shall be deemed reenacted and shall remain
in force and effect u;"ltilthe ordinance aulhorizing
However,
only the annual
appropriations
the proposed appropriations is passed by the sanggunitH'!concerned.
for salaries
and welges
of existing
positions,
statutory and (OnlTactua!
obligations and essEntial operating expenses authorized in the annual and supplemental budgets for the preceding year
shall be deemed
reenacted
and disbursement
of Funds shall be in accordance ct'erewitl1. J: x x (boldFace ours)
.:
Section 323. Faiiur~10 Enad the Annual AppropriatiQns. ~ x ~ x
l
In cose ~le revised
income
estimates
be less tilan til'" ag9reg.ot2
reenacted
appropJiations,
tile local tre"surer
concecned
sllall accordingly advise the sanggunjan concerned whicll 51"Jall,~vithinten {lO) days from t1l~receipt of such c:dvice Inr;:;ke
tile necessary adjustments or reductions. The revised appropriations authOlizeu by the sang~lunj;:m ..:oncernecl 5112.11t11en be
l-
tile basis fo: disbursements.
2
3.3
Issue:
Is it within the power of the local chief executive (LCE) to veto only the
conditions attached to an item of appropriation?
Response:
The LCEcannot veto conditions of an item of appropriation without vetoing
the item it relates to. Applying by analog)', in the case of Philippine
Constitution Association et al. VS. Salvador Enriquez et al.5, the Supreme
Court ruled that in the exercise of the President's item veto power, he must
veto not only the provisions but the entire item of appropriation. Otherwise,
the veto is void. Only inappropriate provisions may be vetoed separately
from an item. Inappropriate provisions have been defined as those which
does not relate to any particular item of appropriation or extends its
operation beyond the item of appropriations, unconstitutional provisions and
provisions which are intended to amend other laws.
It may be clarified that conditional implementation as a form of veto by the
President in the case of the National Budget does not veto only a condition
of an item of appropriation. It is a form of veto where the President specifies
conditions in the implementation of a provision in accordance with existing
laws, rules or policies, or requires the issuance of guidelines for the proper
implementation of a provision.
4.0
Budget Review Phase
4.1
Issue:
Is using an estimate amount of Internal Revenue Allotment (IRA) lower than
the allocation indicated in the annual Local Budget Memorandum (LBM) a
valid ground to declare an appropriation ordinallce inoperative in its
entirety?
Response:
An LGU is entitled to IRA under the lawalld the amount corresponding to
its IRA allocation is provided under the LBM. Thus, if the amount of IRA
indicated in its local budget is lower than what the law entitles said LGU, as
identified in the LBM, the same is effectively a non-compliance of Section
2876 of RA No. 7160, which requires LGUsto include no less twenty percent
(20%) of its IRA for development projects.
Under the BOW, non-provision or insufficient provision of IRA share for
development projects authorizes the reviewing authority to declare the
appropriation ordinance inoperative.
235 SCRA 506 (1994)
Section 287. Local Development Projects. - Eaci110cal government unit shall appr(,priate in its a,\nuai budget no
less than twenty (20%) of its annual internal revenue a:lotment far development projects. Copies of tile deveia~ment pla:\s
of local government un,ts sl'aB be furnished the Depaltment of Interior 3nd local Government.
;
Page 153, Chapter 3/ Item 6.0, Step 3, No. 3.1.3. Deciare tile Appropriation Ordinance inoperative in its eni:irety.
The Appropriator. Ordinance shall be declared inoperative in its entiret\' under any of the (ol:owlng cases:
Y.x"
3
.,.
4.2
Issue:
What is the proper treatment i.e., continuing appropriations or special trust
fund, of the unexpended balance of the Capital Outlays of the local Disaster
Risk Reduction and Management Fund (LDRR~1F)?
.
Response:
The applicable provision is Section 218 of RA No. 101219 which clearly states
that unexpended LDRRt'-1F
shall accrue to a special trust fund solely for the
purpose of supporting disaster risk reduction and management activities of
the LDRRMCswithin the next five (5) years. While Section 32210 of RA No.
7160 treats appropriations for Capital Outla)'s as continuing appropriations
until fully spent, the same cannot prevail over Section 21 of RA. No. 10121.
The Supreme Court in one casell ruled that "where there are lwo acts, one
of which is special and particular and the other general which, if standing
alone, would include the same matter and thus conflict with the special act}
the special must prevail, since it evinces the legislative intent more clearly
than that of the general statute and must be taken as intended to constitute
an exception to the rule".
Applying
apply to
general,
pursuant
fund.
the same in the case at hand, Section 322 of RA No. 7160 should
unexpended balances of Capital Outlays in the LGU budgets in
except in the case of unexpended balanCESof LDRRfviFwhich
to Section 21 of RA No. 10121 should accrue to a special trust
5.0
RO
~1PBD
Cc: Unders_ ,etary Janet B. AbueJ
Assistant Secretary Sofia C. Yanto
The Director, PEt~B
The Head, RCU
NOn-p:ovision
or insufficient
provision
of the 20% of the IRA for development
projects
(Section
287, R.A. No.
7160)
xxx
SEcrIOI~ 21.
Unexpended
management
years shall
Local Disaster Risk Reduction and ~1an"gement Fund (LDRRr~F). - x x x
LDRRMF sh,,11 accrue to a special tl1lst fund solely for the purpose of sUPPol1ing disaster lisk reduc~on and
activities of the LDRRMCs "'Iithin the next rve (5) years. Any such "mount still not fully utilize.j "fter five (5)
revert back to the general fund and will be available for other social services to be identIfied by the local
sanggunian.
Philipp!ne Disaster Risk Reduction and I~anagement Act of 2010
10
Section 322. Reversion of Unexpended Balances of Appropdations, Continuing Appropnalions. - Unexp:;:nded
balances of appropriations authorized in tile annual apprcprialions ordinance sllall revert to the unappropriated surplus of
•
the general fund at the end of the fiscal year and shall not thereafter be available for the expenditure except by subsequent
enactment.
However, appr~p,iations
for capital outlays shall continue and remain valid until fully spent, reverted or tile
project is completed. Re',ersions of continuing appropriations
shall not be allowed unless obli'jiltions
therefor I)ave been fully
paid or Nherwise settled.
The balances of continuing appropriations sl,all be revie\ved as part of !TIe annual budget preparation and the sangguni2n
concerned may approve, upon recommend3~ion of the iocal chief exe:.:utive, the reversion of funds no long~r r,eeded in
connection with the aetivihes fU1ded by said continuing appropriations subject to the prcr"i::;il)ns uf this Section
Ii
City i~aycr '.'5. Rizoi COll1mercial Booking Corporation 62G SCRA 469 (2010)
4
.-----:.-.
r\~ay 10, 2016
:"" [1i<CJe:",,
O'~CCB
~"'ii ~
S
uhe If)1nn?:cr:Qu.r ~~5
Pl\liflJ)~kPJetoni!E:Y's; OHke (lP'fJ10) ~ Refl!Jmdl of BeRliefits and!
J[RllCefili1tr:ves GU\'8Ui! to aDllIEDYilp~O'if'ee as a Re5l\.U~t of the Fin,alit:y
(J.'II f.Jiie CV8dsuOUll in: aRii P.dimuuIlGstu"a'fchre CaSEl
1.0
This refers to the lettel-1 of Atty. Leandro B. Salcedo of the PAO, who on October
12,2015 was rnetecl the penalty of Reprimand and a fine equivalent to one month's
salary. As a result of this, he was asked to refund several benefits and incentives
by the PAO Administrative Service, citing as bases the circulars of the Department
of Budget alld IVlal-lagelTlent(DBM) on the gl-ant of Year-end Bonus (YEB) and Cash
Gift, Productivity Enhancement Incentive (PEl), Performance Based Bonus (PBB)
and Productivity Incentive Benefit (PIB).
2.0
III his letter, ,I},tty. Salcedo questions the refund being asked of him, considering
that no such pronouncement was made in the decision of his administrative case
and only accessory penalties included in the decision may be imposed on him.
J.O
J\t the outset, we agl-ee with Atty. Salcedo that the refund of the subject benefits
are not inLhe nature of all accessory penalty. An accessory penalty is that deemed
included in the imposition of a Ixincipal penalty2, and in administrative cases these
al-e those ic\enLified under the rules issued by the Civil Service Commission for the
pUlpose. On the other hand, the n::fund provision in the DBM guidelines is pursuant
to our authority to implement the grant of benefits and incentives and not in relation
m as a penalty to an admillistl-ative offense.
LioO
As pointeci ini:he le'ct!::I"of P/-\O demanding a refund from J.\tly. Salcedo, such is
Illc:cie Gil the bJses of the circulars issued by this Department and not as an
3
accessoi)f IJellcdty. We note, however, that only the grant of PIB and YES and
Cash Girl.:" ~:irecovel-eel by DBr~ issuances on refund vvhile the refund provision on
PEP c:mclpc;l?6 Cil-efound in executive issuances.
; i;l ,::11s!1'::h
ii'
tI:.t<'d i'iCJI'cll;:, 2016
r,:"t_.~'., ~~::::: i~.,Th'e !~E:'!icd ''::~'i!:lin::!C'Jci<,,-C:'il1lillClI
LiM (622), Eighteenth Edition (20l2),
Uml,:1' CiI'ClIl::lI.L'cilel'
I
I
I
!!
~
t
r
1')0,
2002-3 dJled January 2, 2002 entitled, /ldditional Guidelii7es 01) 117eGrant of Productive
.inl.-entil/e! E;e'n~li{ (/:'jI:U
.
Linil,:I' EI/(i'Ud Cirdllar M". ;'0,10-.1 daled /lpn!28,
and
quezon City, Rex Book
2010, Rules and Regulations 017 the Grant of the )/ear-End Bonus
FY .~)O.f()and h::YIIS Tlh?rl:'attC!r
1I11.kl' 1:.;I',-uli':E: ()n'i,j' I'JIJ. 181, 5. 2015 entitled, PEl Implementation
of the Prollisions of 11713
FY 2015 General
/it'/ ''''r'ni;il, 'f ;.; /\,-1 ((,;-1/1.1 I."I! ilk' Gran! "f i!),~ Fl.' 1015 product/I!ily Enhancement Incentive (PEl) to Government Employees
.
llllli, 'I' I\IJ :,'; ! Ili':'I'-;;l'Jc:n.:y T,yck F,)ru~ 1"it"ll1ol'arlciull1CiI'Cl.llar I~o, 2015-1 dated August 12 , 2015 entitled,
!~ui,i.4/;k',;,'II 1!I,J c"0,;-ni ,II' i/!<o P,,'r/(.'1i1l3nC'3-l3aS2t.7
80171/5fLY F/~;cal )--ear10.l51/nder £'(ecutive Order No. 80
L-~-=;'5il(~!l/
ill(
~::;l"jclil not disqualify the cnlp!oyee to said bellefits,y
penalty imposed is a reprimand and a fine, as in
the case of Atty. Salcedo.
5.0
Given the foregoin~l, it is imperative to clarify the policy or rule on refund and the
basis thereon to pl"Operly advise the PAO on the action to be taken in the case of
Atty. Salcedo and 1'01- the general guidance of all agencies implementing our
circulars.
6.0
I-\ccorclingly, we al-e refelTing the subject letter to
YOUI-
Office for appl"Opriate action.
7.0
,/
/
2
REPUBLIC OF THE PHILIPPINES
DEPARTMENT
OF BUDGET AND MANAGEMENT
MALACANANG.
MANILA
May 10, 2016
MEMORANDUM
FOR
The Secretary of Budget and Management
THRU
Undersecretary Clare G. Amador
Undersecretary Laura B. Pascua
Undersecretary Luz M. Cantor
Assistant Secretary Tina Rose Marie L. Canda
FROM
The Directors, BTB and lS
SUBJECT
Proposed Guidelines for the Issuance of Letter of
Commitment (LOC) Covering National Government Support
for Multi-year Solicited Public-Private Partnership (PPP)
Projects
1.0
2.0
In reference to the above subject, the LS and BTB have jointly prepared and
recommend the issuance of the attached guidelines on the LOC for multi-year
solicited PPP projects, which will serve the same purpose as a multi-year
obligational authority (rvJYOA).The difference in name is merely intended to
differentiate the two (2) issuances i.e., LOC for PPPprojects and MYOA for nonPPPprojects.
The salient features of the guidelines are as follows:
2.1
The covered National Government obligations based on the PPP contract
are limited to: (i) availability payments; (ii) viability gap funding; (iii) real
properly tax; (iv) right-of-way acquisition and other related expenses; (v)
funding fOl' independent consultant; and (vi) funding for project
management office. It may be emphasized that the LOC does not include
contingent liabilities as these are covered by the Risk f'1anagement Program
under the Unprogrammed Appropriations.
2.2
The procedure and requirements were simplified to ensure fast and
efficient issuance of LOCs.The required supporting documents are: (i) copy
of the National Economic Development Authority Board Resolution
approving the PPP project; (ii) joint cel1ification by the Department of
Finance and the PPP Center on the list of obligations and corresponding
amounts committed by the National Government for the PPP project; (iii)
agency budget stl-ategyfor the National Government obligations ill the PPP
project; alld (iv) agency summary of the PPP projeclterm sheet containing
its technical, economic, financial, social and environmental appraisal
aspects.
16:26 MHY 11, 2016
,"if~E(-U~IIN,t:b
TEe"" C"~
E'Lf('
I
I
. ,Ie
!')rcvlded that
an L.()C rna'}'
be
f£)r $lnooth trdrsition
~r;yOJl.
to LOC, the j. :'0vk:.H.J~!.i ISStA:;(i
projec.ts shs!J be fBpLucsd \vith en lOC:' u' on sUP'endef
~~::~id
pnsvluusiv issued i\/jY(),i\,
.~
..f
.............................
__
_----
_._ ..
f'vlay 6, 2016
MEMORANDUM
FOR
The Director, BMB-GGS
FROM
The Director, l5
SUBJECT
Philippine Racing Commission (PhiIRaCom) - Request for
Comments on the Release of the Income Collected from
Wager Funds or Gross Receipts by Metro Menila Turf Club,
Inc. (MMTCI)
1.0
This refers to your Ivlemorandum1
for assistance to facilitate
relative to the letter2
of PhilR2Com rE'questing
the release of the one half percent
C '2
from the wager funds". by the tJlfv1TCI during racing days and depsit
the Trust Fund account of PhilRaCom,
The above
request
was brought
Association
that the income
about
accruing
the same to
by the plea of New Pb.ilippine Jockeys
to the one half percent
(,'h%) collections
from the wager funds by the f\1MTCI be used for death, disabWt;"
and retirement
('io) collections
of their members as provided
hospitalization
in Section 5 (e) of Republic Act (RA)
No. 79783, Currently, said income is being held in trust by th2 f"'ltIJTCI on the
alleged ground that remittance
thereof to the PhilRaCom \;\i)uld defeat the
purpose of RA No. 7978.
2.0
Background:
2.1
Section 5 (e) of RA No. 7978 provides that the one half p:::rcent (1/2%) of
the total wager funds or gross receipts frorn the sale of' betting tickets
collected by the ~/lfvlTCI shaH be used for the benefit of ;:he jockeys and
horse trainers injury, disability and death compensation
fund created
under RA No. 3094, as amendeds ("Disability and Deattl Compensation
lf
fund ).
2.2
Relatedly, the Disability and Death Compensation Fund authorized under
Section 19 of RA No. 309, as amended, for the purpose of providing
compensation
for work-connected
injuryl disabllity and death of horse
trainers and jockeys which was administered
by a Board, has been
dated 22 February 2016
dated 10 February 2016
An Act Grantino Hie f'letro f'llanila Turf Club, Inc. A Franchise to ConstnJCt. Operate and '4aintaip a
for Horse Racing in the city of Kaiookan
\, ,0
4
An Act to Regulate Horse-Racing in the Philippines
by Republic Act No. 6115 entitled An Act Further Ameodir7g Section Nil)eteen of RepuiJ/!:: ,4ct numbered Three
Hundred
Nine by Prolliding for the Distd/Jutiof) of Rece;,')ts 1/7 Horse R2dng
-----------------------------------
_-
--------------_
..
transferred to PhilRaCorn pursuant to Section 1 of Presic':iltial Decree No.
1095,
2.3
S,
19776.
Per coordination with PhilRaCofr/1 the Disability and De"th Compensation
fund still exists, hmvever the one half percent ( '12 (Yo) sh~ire under Section
5 Ce) of RA No. 7978 has not been remitted by ~1rvJTn since February
l
2013.
3.0
Comments:
3.1
Vve note that that based on the above provisions of lav'l, t is dear that the
one half percent (1/2 %) from the total wager funds or 9 oss receipts from
the sale of betting tickets collected by jV1~.1TCI
shall accrue to the Death
and Disability Compensation Fund.
3.2
Said Fund shall be used for the purpose of providing compensation for
work-connected injury, disability and death of horse tranel's and jockeys
under Section 19 of RA No, 309, as amended.
3.3
Considering that the Disability and Death Compensation Fund has been
transferred to PhHRaCom, it should therefore administer said Fund for its
intended purpose in accordance vl/itl! RA No. 309, as ame'ided.
3.4
Accordingly, the PhilRACom has tile authority to get the one half percent
('1;0. %) from r"lfV1CTIaccruing to Disability and Death CO;lipensation Fund
pursuant to Section 5 (e) of RA No. 7978, and sVJject to existing
budgeting, accounting and auditing rules and regulations.
Amending Section 8 of PD No. 420 Creating the Ph:lrppine RaCing Cumnlission
Through telephone conversation of Atty. Raymond Alvin fvl. Hendon) on ['''lay 6,201.6
wi1\ Hi'. ['jarlon
fures
of
PhilRaCar-'j
2
fvlay 4, 2016
MEMORANDUM
FOR
The Director, BMB - EDS
FROM
The Director, lS
SUBJECT
Department of Public Works and Highways
(DPWH)Request for Change in Operating Unit (OL) from 801101I
District Engineering Office (DEO) to Centra! ~ffjce (CO)
1.0
This refers to your Hemorandum1 requesting for clarillcation ::m the follovving:
(i) vvhether or not a change in the OU fwrn Bohol I DEO to CO {.J the construction
of Nevv Bohol Pwvincial Capitol Building \'vhich is included L:der the project;
Construction/Repair!
RehabilitationjImpwvelTlent
of Vario,~s Infrastructure
~
including Local Projects under RA No. 107171. of the FY 2016 in _olves realignment
or augmentation of funds; and (li) whether or not a char~e in the unified
accounts code stl-ucture (UACS)( such as the location code 'n this caSE, If'!i!!
change the nature of the transaction as realignment or augmenration( as the case
may be.
2.0
The subject request \lvas forwarded to RO VII for its approval but RO VII
responded that that they cannot act on the request consid.'>-in9 that request
entails augmentation of funds \lvhich requires approval of the Pr:::sident.
3.0
Comments:
3.1
A change of the OU \lvithin the same programjactivityJoroject (P/A/P) is
realignment, as provided under Section 76( General Provisions (GPs) of RA
No. 10717 ("GP 76")( to wit:
Section 76. Rules in the ReaUgnment of Funds. !~~ a general rule,
departments! bureaus and offices of the national government! including
Constitutional Offices enjoying fiscal autonomy and sues shall spend ';'ihat
. is programmed in their respective appropriation in th:s Act. In exceptional
circumstances( realignment may be made within a PI AlP subject to the
approval of the following:
xxx
(b) The DBr,1 in the follm\ling realignments: (i) for the payment of magna
carta benefits authorized under Section 55 of RA 10717; (li) from one
allotment class to another; (iii) from one operating
unit (OU) to
another;
and (iv) \Nithin a special purpose authorized under i,:le
Unprogrammed Appropriations; and
..
..1ni'\11. ~~
f~>~
8MB f,,1' EQjI;tl£""fl'l'Wi'i:.UJlL"IrJ- 01:::'.,\£Li')f'\, -'Ern
Dated [vlard) 9, 2016 and receiver! on ['Tarch 10, :W.l6 lTy LS.
FY 2Dl6 General Appropriations Act (GlIA).
4.0
3)
Conformably
foregoing,. the modification in
)U of
project from BalDI I DEO to CO is a realignment unde~ (~.J 76.
3.3
Unlike realignment!
augmentation
is the act of cor fitutional
officers
authorized to use savings in their respective appropr ations to cover a
deficiency in any e>~isting P/A/P \vithin their respective 0'1(253. Particularly
for the Executive Branch, augmentation
refei's to thl authority
of the
President to use savings to cover actual deficiency in an e>~isting P/AiP
\/vithin the Executive Branch.
subject
Anent the effect of cllange in the UACS, we note that such n- Jdifkation
win not
alter the nature of the transaction
- it remains
to b
or
augmentationl
as the case may be. Implementai:ion
of the UAC; is merely meant
to provide for a unified accounting, auditing and reporting
transactions
f all the financial
of the government".
/....------.,
5.0
-"Per reqyest.
Section 74, GPs under the FY 2016 GM.
Sec. 3. Fi 2016 Budget with UACS. The DSH shall identify the accoun,: codes of tre 11'0rn5cr appropriaUons in
this Act pursuant to the Unified Accounts Code Structure (UACS) under COA.DB,+OOF 1C Nos. ,,013-1 dnd 201+1 dated
,Ci,ugust 6,2013 and November 7.2014, respectively. The UACSsiia!i cover the funding source, orGanization, location, HFO,
program, actlV1ty and project (PfA/P), ano object codes which sil.:IJibe uscG in the release ct U'le appropriations for a
unified accounting, auditing and reporting Of all the financial transactions of the fFJ'lernment. Th. Up.,Cs sh;;lil be Identified
by the DSH for the purpose of Implementing tilis Act,
ErV:Er:
: ~ j"'
•
, I.',
f\1ay 4, 2016
MEMORANDUM
FOR
FROM
The Director, lS
SUBJECT
Department of Agriculture CDA) - Office of the Secretary
(OSEC) - Establishment of a Special Account in the
General Fund (SAGF) for the Seed Fund
\
1.0
This refers to }lour fVlemorandum" relative to the request of the Secretary of DA
for the issuance of a fund category code for the SAGF on tl:2 Seed Fund to DA-
OSEC.
2.0
'
1.1
In your f'1emorandum dated April 6, 2016 your Office recommended the
creation and issuance of a fund category code for the Seed Fund pursuant
to Section 162 of Republic Act (RA) No. 73083 and Special Provision (SP)
No. 134, DA-OSEC under FY 2016 General AppropriatJols Act (GllA) or RA
No, 10717.
1.2
The BTB in its rvtemorandum dated April 7, 2016/ hovi/ever, cited Item 2.35
Annex 85 of Office Order No. 2014-3137 dated August 5, 2014 for this
Office to provide recommendation Oil the legality of tll.,~ request
Comments:
Gated /1p(1 Hi 2016
,ll,nAct to Prornote 3n~j Dev5f:jp the Seed Industr'l in the Philippines 2nd cceate a N)~jcr2r Se::d lr:dustry Council
and for Other Purposes
::
SECll0N 16. Fl;nds of the CounciL - 7l':e:"e IS hert?by create:q .3 sped-3; 2.o:ount in tt':c ;:'.:..no;'ar. fund to bf: ~;n0\Vn
as the See:f Fund \\!hicn shall be o!)tained frorn UV~
sources:
il. FF!f million pesos (P 5,000,000.00) to 1)<3 ppropriatf'd cut or any fl"ds in the f>Jaton,,1 Treasury not oliE:"'Nisf
appropriated;
.
[1,
Tile existin~l Seed Fund;
c
Revenues frem1 the sale or certified seeds and pLant rnater-lals; including but not k:ritf:d tD tt",€ 1.1CCHne :Jerived
fror-n the products of rcscel'ch stations and seed farrns: seed processing and tcst.rg t:,:es{_ field inspectlof) fees,
s~ed expert 2nd irnport: fees: licenses fees, fees for the issuance of perrnits tD SE"2{; ic,; r0vJersjproducet's. F~nes
colleet.ed for violations of this ,c.,et;and
Donations frolll
or
agencies, either domestic or foreign: Providen, fl12t sai') fend "t'all be heid Hi trust
by the 8ureau
Piant
Provided, rurtt;ar, That the allocation, utilization and dispcs:~ic,of sud, funds shall be by
and under tile authoritY of the Council.
,
CA05EC 5P13. Se,:d fund, In p.ddition to tile a:noui1ts appropr'eh::d i1e;'ein, all 'eef-pes de"jved from sales of
seeds, planting materials, products of research stations and sead f,,\nns, seed pnxesslliS) an .• tt;,ong fC'2s, tield inspection
ress, seed export ,me! import fees, license rees, re,':" for the issuance of permits to seed
and Droduters shail be
~.,sej for tne irnpl2fnentc!tion of tile National Seed
Prc9ro~ns in accordance vnth
~t --1 1.6c of R.p" [\10. 7308:
PROVIDED .. That V~e i3rnount shall not be used to CQver personnel serAc:: expe.ncliturcs. ::(XX..•.
:;
DBt--'iLegal Service needs to provide rscornn1Cr1(!2Uon to the 8H3. It s}joukl give d.;2r dppro'!al :Jr denial of the
feqLEst of its legality.
,
UJ~CSAdministraricn
Prccedure
Imp!ernentiltion of the UACS ?,::fministratitJn
PW':5S
1e;}
2.1
Section 16 of R4 No. 7308 vl/hich vvas reiterated ill SP '~o. 13, DA OSEe of
FY 2106 GAA, e>~presslyauthorizes the creation of S:,\:;F to be knovm as
Seed Fund. It.shall be sourced from revenues from tie sale of certified
seeds and plant materials, including but not limited to:he income de,'ived
from the products of research stations and seed fanTs! seed processing
and testing fees, field inspection fees, seed export and import fees,
licenses fees, fees for the issuance of permits to seed growers/producers
and fines collected for violations of this of RA No. 730b to be used for the
implementation of the National Seed Quality Programs in accordance with
RA No. 7308.
2.2.
It may be recalled that during the FY 2016 Veto Preparatioll, LSS favorably
recornmended the adoption of the SP No. 13, DA OSEe of FY 2106 GAA
considering that the provision merely reiterates what ',las provided under
Section 16(c) of RA No. 7308 for the creation of the Seed Fund.
reference
2