RePublic of the PhiliPPines DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT A.

Francisco Gold Condominium II Bldg, EDSA corner Mapagmahal St., Diliman, Quezon City

OFFICE OF THE UNDERSECRETARY FOR LOCAL GOVERNMENT

oPrNroN No.
O4

9t s.

2010

Jurre

2O

lO

MS. NENCITA N. COSTELO

CLCTOO

DILG Region IV-A Dagmarinas, Cavite

Dezrr Ms. Costelo:

Tlrispertainstoyoulfequestseekingclarilicationonl.heperceivedconflict

between DILG Opinion No. 66, Series of 2oo9 issued on 15 Decetnber' 2009 post wherein w. opinJd that a Plulong Bzrrangay (PB) is no longer required to to PBs a fidelity boni, zrnd Treasury circular No. o2-2OOg which enjoins thc post c,ne. Your letter.".1.,""i w:rs forwerrclc<l to this level by DILG Region IV A Director Josefina Castilla-Go.

Tlrcbasestbrrender.irrgopirrionNo.66,s20ogwere(a}Treerstrr.yOrd-erNo. g5-01_g5 regarcli.g thehevisccl Regul;rti.'s Gove'-ri'g the Fidelity- Bonding ol Cuu"r.-uii Otficlals ancl Dmployecs, trLrtl (b) Section 3441 t':f ttrc Locitl
[iovernment Code. However, thcre were othel t clltecl isstt;tnces wtt:
1r1ate1.ial

to the subjcct natter' to

1999 (a) DILG Memorandum Circular No' 99-186 issued on 11 October' enjoining all Punongrl3arang.lys ancl Barangay Treasurers Lo comply the'posting of ficlelity bonds pursu:urt to Treasury Circular 95-

wii}r

ol;

(b)

Treasury Circular No. O2-2OO9 issr-red on 02 Augusl 2009 whith revised hr..,".,ry Orclel Nos 01-95 'rnct 0 l'-99 perl"Lining to thc regulations prornul-ctutecl Jbr tlrc efJbc:tiue bonding ttJ accountctble
youcl)ers. be disbursed unless the local budget officer

- No money shall section 344. Ceijfication, and Apprcval of, certifiestotheexistenceofapplopr|at|onthathasbeenlega||ynadefolthepurpose'the|ocaIaccountanlhasobl|gated for the Durpose Vouchels and payrolls

of funds said appfopriation, ancl the local treasLrrer certities to th; aiailabil(y who has administrative control of ihe fund sha be certified to and approved oV tl " n""J "l ,fi" Jepartment oi office in cases of disbursenlents Involvlng Exceot legality of the claim involved concerned, as to valdlty' propu",y' permarrent employees' expenses fot light' "itJ regular.or payrolls for !'iri expJiii"t regularly recurring adminrstratve "t guuernn,eni creditor aqencaes such as GSls, sss, LDP' DBf ' waler, telephone and ,","grupn ."ru,""""liumittrni..'to others, approial of the disbursemenl voucher by the National printing office, procurement Service of the DBIVI and are drsbursed funds local whenever requirecl be shall nimself io".ilf,i"f

"ru"itlu"

In cases of special or

of the lund tlust funds, disbulsements shall be appfoved by the administrator

|ncaseoftemporaryabsenceol|ncapacilyof|hedepat[netll.heado|ch|efofof|rce'lheofflce|nextin'|anksha||
Inelelor automatically perform his functton and he slrdll be fully responslble

public
and

oJJicers pLltsttltll to

Ilrc prouisions of the Pubtic Bonding LauF;

[c) Treasury

October 2009 Office Order lilo' O9-2OO9 issrLecl on O I With lYeasury prescribing tne Cujtletines'Ib FcLcititate Cotnplia nce Gouenurtg Circular No O2-2O09, Prescribing'fhe fleuised Regulotions OJJicers' The Ficletity Borulirtg Of Accortriuble Public

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

ii.o"ur"r", oid punong barcLngags xxx't

99-186 and Section 305(f)r"n1 the No.7160).
LocaLi

Circr-rlar (MC) The trasis of this coveragc was the same DILG Memorandum Code of 1991 (Repubiic Act

Government

of DILG MC 99-186' the There being no repe:rl, amendtnent nor rcvision Barangays (and l]qang3y directive set forth therern enjoining all Punong with' as the said circrtlar Treasurers) to post lideliiy to"a", titt"t be,complied io te in full force arnd effect as of date'
"ontin..""
For your information ancl guidance' Very truTY Yours,

Undersecretary

Copy Funished:

RD Josefna E. Caslilla-Go Taguig CiIY D|LG Catabazon Region' FTI Complex,

Efrcn M. Echavia

Prcvincial Ditector
DILG- Cavite

Legal:55:itl"s

circular 02-1009 '?2.0 Purpose, Treasury

:
localsove, rtmenr. unit.rrvrrose dutre.s l:'Tl:-l:ll':':Jfi.X'"'.".','JiJ,:l said funds l;l"ffi':AAJ:fr.lre and responsible for :::."l"tJt properly Douoed, and such officr shall be accountable be shall local funds f- in" iir"l*ping the;eof in conformity with tlre provisions ol law'
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sr$liAl trF E Republic of the Philippines 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!'
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December

|5.

2OO9

!t
CONRADO P. DELOS SANTOS
Punong Barangay Barangay Bucana Sasahan Naic, Cavite

-t- BVI-i

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Dear Punolrg Barangay Delos Santos:

This pertains to your letter seeking our legal opinion regarding your posting of fidelity bond.

You stated in your letter that your fidelity bond was not sigrred by Mayor 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 Barangay like you to post a fidelity bond.

In reply thereto, we are of tlte considered view that only appointive officials wlro are in custody of public futrds, e. g, barangay treasurer are required to be bonded before they can disburse funds. This conclusion is pursuant to Sec. 2.1 vis-d-vis Section 4.'1 ol Treasury Order No. 95-01-95 regarding the Revised Regulations Govertring the Fidelity Borrding c Governnrerrt Officials and Enrployees, to wit:
"Section 2.0 Coverage

2.1 Except as otherwise herein provided all officials

and

employees of National Governnrent Agencies (NGAs), Government Owned-and Controlled Corporations (GOCC). Local Governmenl Units (LGUs), Self Governing Bonds and Commissions and all otlrers concei'rred shall, ,rvhenever the duties performed permit or require the custodv of fU! d.S prope rtv/accou nlable forms, be covered by a fidelity bond. (unclerscoring ours)" Secticn 4.0 PFOCEDURE FOR BONDING

4.1 Appointqp4l or lawful accession by any person to

bonded or bondable position or office, shall be notified immediately by the agency to the BTr FE lV of the province or region where thq eppointee is assiqned." (underscoring ours)

the Purrong Barangay is not in custody of public funds rreither is he an appoirrtive official, the aforesaid Treasury Order therefore is not
Sirrce

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

Vouchers and payrolls shall be certified to and approved by ihe head of the department or office who has aclministrative control of the iund concerned, as to validity, propriety, ancl legality of the claim involved. Eicept in cases of disbursements involving regular recurring administiative expenses such as payrolls for regulir or permanent employees, expenses for lights, water, telephone and telegraph services remittances to government creditor aqencies such as the GSIS, SSS, LBP, National printing Office, procurernent Service of the DBM and others, approval of the disbursement voucher by the Local Chief Execulive lrimself shall be required whenever local funds are disbursed. xxx"

defined as "the power of an officer to alter or nrodify or set aside what a subordinate officer has doue in the perfornrance of his duties and to substantiate th iudgrnent of the fornrer for that of the latter. (Mondaiio vs silvosa[97 Phil. 143]. Nothing in said definition connoted ttrat such power of control includes the right to l<eep and hol<l firnds.

The above'rrrentioned provision categoricafiy dectared that the Punong Barangay has "adnrinistrative control,, of said funds. Control is

In view of the foregoing discussiolt, as a punoltg lr"r",rguy, you are no longer required to post a fidelity boncl, lt is sufficierrt rhat your barangay treasurer is duly bonded for said purpos.
We hope we have nlightened you on the nrattr.

Very truly yours,

AusTTRE A. PAN;DERo]/ t!ndersecretary for Local Goverlffi ent

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