Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City
FIFTEENTH CONGRESS,
‘Third Regular Session

HOUSE BILLNo.__6638

INTRODUCED BY HONORABLE MARIA EVITA R. ARAGO-

EXPLANATORY NOTE

In accordance with the thrust of the government on public accountability and
transparency, this bill seeks to allow the general public access to transactions in the local
government units. The measure will ensure that local government officials will adhere
to fiscal responsibility and transparency by mandating them to make known to the
public all financial and fiscal related activities of the local government units within their
jurisdiction.

The amendment specifically requires detailed account of expenditures and
disbursements and not only a statement of income and expense. The fiscal transactions
would include the Annual Budget, Quarterly Statement of Cash Flows, Statement of
Receipts and Expenditures, Trust Fund (PDAF) Utilization, Special Education Fund
Utilization, Statement of Debt Service, Annual Procurement Plan or Procurement List,
Items to Bid, Bid Results on Civil Works, Goods and Services, and Abstract of Bids as
Calculated.

It is envisioned that disclosures of these expenditures and financial activities
would ensure that public money is spent well on public service.

In view of the foregoing the urgent passage of this proposed measure is earnestly
sought.

i
MARINEVITAR.

Representative
3” District of Laguna

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Fifteenth Congress }
Republic of the Philippines)
Third Regular Session
House of Representatives

HB. No. 669

Introduced by Representative Maria Evita R. Arago

AN ACT
MANDATING FULL PUBLIC DISCLOSURE BY GOVERNORS, MAYORS,
‘TREASURERS, ACCOUNTANTS, BUDGET OFFICERS AND OTHER FUND
ACCOUNTABLE OFFICERS OF THE LOCAL BUDGET AND FINANCES OF THE
LOCAL GOVERNMENT UNIT AMENDING SECTION 352 of REPUBLIC ACT 7160,
OTHERWISE KNOWN AS THE “LOCAL GOVERNMENT CODE OF 1991” AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Section 1. Short Title, — This Act shall be known as the “Local Government
‘Transactions Disclosure Act of 2012”.

Section 2. Declaration of Policy. - The government recognizes the principle that
publie office is a public trust, local government officials and employees must at all times
be accountable to the people, and shall perform their functions with integrity, efficiency,
competence and uphold public interest at all times.

Section 3. Section 352 is hereby amended to read as follows:

SECTION 352. (A) FULL DISCLOSURE AND MANDATORY POSTING
OF LOCAL BUDGET AND FINANCES, EXPENDITURES, DISBURSEMENTS,
FUNDS UTILIZATION, BIDS AND PUBLIC OFFERINGS, ALL PROVINCIAL
GOVERNORS, CITY MAYORS AND MUNICIPAL MAYORS SHALL MAKE A
FULL DISCLOSURE AND CAUSE THE POSTING OF THE FOLLOWING
FISCAL ITEMS:

I. ANNUAL BUDGET

IL, QUARTERLY STATEMENT OF CASH FLOWS

OI. STATEMENT OF RECEIPTS AND EXPENDITURES

IV. TRUST FUND (PDAF) UTILIZATION

V. SPECIAL EDUCATION FUND UTILIZATION

VI. 20% COMPONENT OF THE IRA UTILIZATION

VII. GENDER AND DEVELOPMENT FUND UTILIZATION

VIO. STATEMENT OF DEBT SERVICE

IX. ANNUAL PROCUREMENT PLAN OR PROCUREMENT LIST
X. ITEMS TO BID

XI. BID RESULTS ON CIVIL WORKS, GOODS AND SERVICES
‘XII. ABSTRACT OF BIDS CALCULATED

(B) LOCAL TREASURERS, ACCOUNTANTS, BUDGET OFFICERS
AND OTHER ACCOUNTABLE OFFICERS SHALL, WITHIN THIRTY (30)
DAYS FROM THE COMPLETION OF THE PREPARATION OF THE
ABOVE FISCAL ITEMS IN ACCORDANCE WITH THE FORMS,
PROCEDURES, AND SCHEDULES PRESCRIBED BY THE DEPARTMENT
OF BUDGET AND MANAGEMENT AND THOSE THAT MAY BE JOINTLY
ISSUED WITH THE COMMISSION ON AUDIT AND OTHER


RESPONSIBLE AGENCIES, POST THE SAME IN THREE (3) PUBLICLY
ACCESSIBLE AND CONSPICIOUS PLACES IN THE LOCALITY, AND IN
ADDITION, IN ANY ONE OF THE MEANS PROVIDED HEREIN:

i. OFFICAL WEBSITE OF THE LOCAL GOVERNMENT UNIT, OR IF
THERE IS NO WEBSITE AVAILABLE, ON THE OFFICIAL
WEBSITE OF THE PROVINCE HAVING TERRITORIAL
JURISDICTION OVER THE SAID LOCAL GOVERNMENT UNIT;

Il, PUBLICATION IN A NEWSPAPER OF GENERAL CIRCULATION. THE
POSTING REQUIREMENT IN PUBLIC PLACES AND IN THE
OFFICIAL WEBSITE SHALL BE CONTINUOUS UNTIL THE NEXT
REPORTORIAL UPDATE, WHENEVER APPLICABLE, IS
ACCOMPLISHED AND PREPARED FOR POSTING.

{C) ALL PROCUREMENT RELATED ACTIVITIES AND
REQUIREMENT OF THE CONCERNED LOCAL GOVERNMENT UNIT,
SUCH AS THE INVITATION TO BID, NOTICE OF AWARD, NOTICE TO
PROCEED, AND APPROVED CONTRACT IN PROCURING ENTITY'S
PREMISES, SHALL STRICTLY COMPLY WITH THE POSTING AND
PUBLICATION REQUIREMENT UNDER REPUBLIC ACT NO. 9184,
OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT
REFORM ACT, WHEREIN POSTING AND PUBLICATION SHALL BE
MADE IN A NEWSPAPER OF GENERAL CIRCULATION AND IN THE
‘WEBSITE OF THE PROCURING ENTITY.

Section 4. Criminal and Administrative Liability. The penalty of imprisonment
of not less than one (1) month but not more than six (6) months, and/or a fine not
exceeding the equivalent of six (6) months’ salary or suspension not exceeding one (1)
year, shall be imposed, in addition to the imposition of administrative sanction, upon
public officer or employee who shall violate any of the provisions of this Act.

Section 5. Separability Clause. If, for any reason, any part or provision of this
Act shall be held unconstitutional or invalid, other parts or provisions hereof which are
not affected thereby shall continue to be in full force and effect.

Section 6.. Repealing Clause. All laws, decrees, Executive Orders and Republic
Acts inconsistent herewith are hereby deemed repealed.

Section 7. Effectivity. This Act shall take effect fifleen days (15) days following its
publication in at least two (2) newspapers of general circulation or the Official Gazette.

Approved,