DBM, COA revise rules for disposing of state assets


At a glance

  • An updated order to the decades-old guidelines for the sale and disposal of government properties was signed by the government in its mission to maximize savings.

  • The order seeks the disposal and the auction of government properties that are not necessary or being used.

  • These properties exclude real properties, public records, and imported properties allocated to the government.

  • It also mandates the establishment of a disposal committee, composed of a chairperson and its members.


The government signed an order to overhaul the decades-old guidelines for the sale and disposal of government properties.

The Department of Budget and Management (DBM) and the Commission on Audit (COA) have inked the Joint Circular on the Revised Manual on the Disposal of Government Properties.

This revised manual updates the National Budget Circular No. 425, which was issued in January 1992, that prescribes the Manual on the Disposal of Government Property to guide the agencies in their disposal undertakings.

“A lot of our rules and regulations, circulars, and memoranda were done from way back. I think, with the changing times, with the modern times, it’s just but wise for us to also evolve and try to cope with what’s happening around us,” DBM Secretary Amenah F. Pangandaman said.

“Of course, when we work, we want our environment to be clean and beautiful. They said it’s quite difficult to dispose of our government properties, goods, and materials. So I said, we need to have guidelines for disposal. So, I asked our team if we can study and maybe upgrade and amend the Manual to make it easier for us,” she added.

Government properties, as defined by the manual, are those that are movable or personal, purchased, owned, or otherwise acquired including those donated to, stocked, and used by the government in its operations, excluding real properties, public records, and imported properties allocated to the government.

It also mandates the establishment of a disposal committee, composed of a chairperson and its members.

In addition, it sets the conditions of properties for disposal, and the various modes of disposal, as well as the guidelines for the adjustment of appraised value, and the rules to follow for auction procedures.

"I am grateful to the COA, led by Chairperson Gamaliel Cordoba. Sincere thanks for your leadership and the full support of COA to help us achieve this aspiration," the budget chief stated.

For COA Chairperson Gamaliel A. Cordoba, he said that the DBM followed the rules and regulations set by its agency to ensure the manual reflects current trends and practices.

“Special thanks to the Department of Budget and Management, headed by Secretary Pangandaman, who took into consideration the existing laws and policies governing disposal, including the pertinent rules and regulations issued by the Commission on Audit, as well as the inputs from various stakeholders, thereby ensuring that the Manual reflects current trends and practices,” Cordoba said.

The updated manual is part of the government’s goals to utilize the properties to their full potential, save the government from unnecessary expenditures, and help maximize savings.

“Furthermore, systematic and timely disposal proceedings are essential to avoid further deterioration of the properties and consequent depreciation in their value,” the DBM said.

“It would ensure the elimination of the continuing storage costs of the government, relieve accountable employees from unnecessary or excess accountability, and effectively decongest government offices,” it added.