DILG warns LGUs of strict sanctions if they wrongfully use incentive funds

Published October 22, 2018, 12:36 PM

by AJ Siytangco


By Chito Chavez

The Department of Interior and Local Government (DILG) warned the local government units (LGU) of strict sanctions if they wrongfully use the financial grant incentives accorded to them.

DILG officer-in-charge (OIC) Eduardo Año cautioned them they would go through hell before they can outwit the government in committing their corrupt acts.

DILG officer-in-charge Eduardo M. Año (DILG / MANILA BULLETIN)
DILG officer-in-charge Eduardo M. Año

He warned the LGUs against plundering the performance incentive funds (PCF) grant as there is a system in place to monitor and ensure that every centavo of the money will be earmarked to legitimate projects for the people.

The DILG chief reiterated that political positions are meant for public service and should not be used for the personal business interest.

He maintained that at all times the financial incentives provided to the deserving LGU should be used to improve its delivery of public service.

The urgent call was issued following the issuance of the directive for the release of PCF 2018 grant of more than P980 million to deserving LGUs.

For 2018, 263 LGU Seal of Good Local Governance (SGLG) winners were declared eligible to access the PCF incentives in the amount of P7 million per province, P5.1 million per city and P3.2 million per municipality.

As an exclusive grant awarded to SGLG winners, Año said the PCF prize money can make a big difference in financing local development projects of the LGUs.

“The SGLG criteria is harder this year so make good use of the PCF prize money. Sana ay ilaan ito ng mga LGU sa mga proyektong lalo pang magpapabuti sa antas ng pamumuhay ng kanilang mga kababayan (I hope that the LGUs allot them to the projects that would improve the living conditions of their constituents),’’ Año said.

Año said the grant should give the LGUs the opportunity to serve their community members to the fullest in line with the government’s call for a “Matino, Mahusay and Maasahang (Righteous, Excellent Dependable) delivery of public service.

The DILG will soon release the PCF Operational Guidelines for LGUs’ guidance on the process and management of their proposed projects and its fund. It will contain the general policies and procedures in the implementation of the PCF program.

The said operational guidelines shall specifically assist PCF LGU beneficiaries to effectively and efficiently implement their PCF-supported projects, and shall contain DILG’s roadmap on the management of PCF which includes release of financial subsidy, monitoring, and reporting of implementation of the PCF project.

In the recently released directive, the PCF incentive shall be given to LGU beneficiaries upon the submission of the checklist of project indicating the proposed project duly approved by the local chief executive, and the Government Bank Certification that states that LGU has an existing trust fund for first-time LGU recipients.

The LGU must also present a certified true copy of the Annual Investment Program or Local Development Investment Program or Provincial Development Investment Program by the secretary of the Sanggunian.

Implemented by the DILG in 2010, PCF is a financial subsidy to qualified LGUs under the local governance performance management program of the department.