2014-05-05

NPM 017-2014

Requesting Entity: Local Government of Bombon

Issues Concern: Authorization by the Sanggunian for Contracts Entered Into by the Local Chief Executive in behalf of the Local Government Unit

 

Details

Whether there is a need to secure authority from the Sangguniang Bayan to enter into contract after the issuance of award to winning contractor or supplier, to implement or to enter into contract in all procurements even though they are specifically identified in the annual budget; and

Whether there is a need to secure an authority from the Sangguniang Bayan to implement or to enter into contract in all procurements even though they are specifically identified in the annual budget such as TRAININGS, OFFICE SUPPLIES, OTHER SUPPLIES, REPAIR & MAINTENANCE OF I.T. and OFFICE EQUIPMENT.

For guidance on the abovementioned issues, we refer to the Supreme Court's decision in "Hon. Gabriel Luis Quisumbing, et. al. vs. Hon. Gwendolyn F. Garcia Velasco, Jr., (In her capacity as Governor of the Province of Cebu), et. al.," to wit:

The question of whether a sanggunian authorization separate from the appropriation ordinance is required should be resolved depending on the particular circumstances of the case. Resort to the appropriation ordinance is necessary in order to determine if there is a provision therein which specifically covers the expense to be incurred or the contract to be entered into. Should the appropriation ordinance, for instance, already contain in sufficient detail the project and cost of a capital outlay such that all that the local chief executive needs to do after undergoing the requisite public bidding is to execute the contract, no further authorization is required, the appropriation ordinance already being sufficient.

On the other hand, should the appropriation ordinance describe the projects in generic terms such as "infrastructure projects," "inter-municipal waterworks, drainage and sewerage, flood control, and irrigation systems projects," "reclamation projects" or "roads and bridges," there is an obvious need for a covering contract for every specific project that in turn requires approval by the sanggunian. Specific sanggunian approval may also be required for the purchase of goods and services which are neither specified in the appropriation ordinance nor encompassed within the regular personal services and maintenance operating expenses.