(NAR) VOL. 7 NO. 1 / JANUARY-MARCH 1996
1.
PURPOSE
This
Order is issued to prescribe the rules and regulations covering the
collection, remittance and utilization of proceeds from the sale of
government lands and other properties transferred to the Bases
Conversion Development Authority pursuant to RA No. 7227 as amended by
RA No.
7917.
2.
COVERAGE
This
Order covers the Bases Conversion Development Authority (BCDA) and all
agencies, national, local or government corporation, designated as
beneficiaries, implementors or conduits, hereafter referred to as
agencies, of the proceeds of the sale of government lands and other
properties in accordance with the provisions of RA No. 7227 as amended
by RA No.
7917.
3.
GENERAL
GUIDELINES
3.1 Pursuant to the "one
fund" concept in government budgeting and accounting, consistent with
the provisions of Section 29 (1) of Article VI and Section 22 of Article
VII of the Constitution, as implemented by Sections 44 and 45, Book VI
of EO No. 292 and Sections 65 and 66 of the Government Auditing Code,
all income, fees, charges, assessments, and other receipts or revenues
collected by government offices and agencies shall be deposited in the
National Treasury and shall accrue to the General Fund of the National
Government.
3.2 Section 1 of RA 7917 provides that
"The proceeds from any sale, after deducting all expenses related to the
sale, of portions of Metro Manila military camps as authorized under
this Act, shall be deemed appropriated for the purposes herein provided.
. .". This means that the funds are automatically appropriated and
their utilization shall be in accordance with the purposes enumerated
therein, subject however, to budget programming based on the approved
government fiscal program for the
year.
4.
SPECIFIC
GUIDELINES
4.1 The proceeds from the
sale of government lands and other properties pursuant to Section 8 of
RA 7227 as amended by RA 7917 are hereby declared government funds and
shall be remitted to the National Treasury and shall accrue to the
General Fund of the Government.
4.1.1 The treatment and deposit
of interest earnings from the proceeds of sale of government lands and
other properties transferred to BCDA pursuant to R.A. No. 7227, as
amended by R.A. No. 7917, shall be determined by the Committee created
under paragraph 4.2 hereof in consultation with the Bureau of the
Treasury and the Commission on Audit.
4.2
BCDA shall remit to the National Treasury, the proceeds from the sale,
net of the expenses directly incurred in the sale of the land or
property, within two weeks after receipt of actual payment form the
buyer. The direct expenses incurred shall pertain to those expenses that
are directly attributable to the sale of the land or property such as
the appraisal/valuation of the properties, marketing expenses and
relocation/replication costs or those which would not have been incurred
by BCDA and AFP if the decision to sell were not made, with the latter
to be determined jointly by a Committee herein created composed of
representatives from the Bases Conversion Development Authority (BCDA),
Department of National Defense (DND) and Department of Finance
(DOF).
4.3 In accordance with Section 1 of RA
7917, 2.5% of the sales proceeds of Fort Bonifacio, net of the direct
expenses defined in the preceding section, shall be deducted to cover
the share to be divided equally among the City of Makati and the
Municipalities of Taguig and Pateros. The Bureau of the Treasury shall
establish a separate Special Account for the Department of Budget and
Management which shall act as conduit and administrator of the fund
intended for the City of Makati and the Municipalities of Taguig and
Pateros.
4.4 The Purposes enumerated in RA 7917 shall
be interpreted as follows:
4.4.1 The Modernization Program
referred to under Section 1 (1) shall include not only the modernization
program of the Armed Forces of the Philippines but also the
modernization program of the Government Arsenal as determined by the
Secretary of National Defense;
4.4.2
Section 1 (3) shall mean the National Shelter Program as implemented by
the National Housing Authority, National Home Mortgage Finance
Corporation and Home Insurance Guaranty Corporation as endorsed by the
Housing and Urban Development Coordinating
Council;
4.4.3 Section 1 (5) shall mean
critical infrastructure projects for areas surrounding the former bases
as recommended by the BCDA and forwarded to the Department of Public
Works and Highways (DPWH) and Department of Transportation and
Communications (DOTC) for
implementation;
4.4.4 Section 1 (9) shall
mean the multi-year program of the prosecution service being implemented
by the Office of the Secretary of the Department of Justice (DOJ) and
the Ombudsman;
4.4.5 Section 1 (10) shall
mean the improvement of prison facilities undertaken by the Bureau of
Jail Management and Penology and the Bureau of
Corrections.
4.4.6 Section 1 (11) shall
mean the judicial reform programs of the
Judiciary;
4.4.7 Section 1 (12) shall mean
the pre-school program of the Department of Education, Culture and
Sports (DECS) and day care centers as determined by the Department of
Social Welfare and Development
(DSWD);
4.4.8 Section 1 (14) shall mean the
construction of Senior Citizens Centers as determined by the DSWD;
and
4.4.9 Section 1 (15) shall mean
programs and projects to meet emergency and contingent needs of the
areas devastated by the Mount Pinatubo eruptions as determined by the
Mt. Pinatubo Commission for implementation by the appropriate
agencies.
4.5 The Bureau of the Treasury
shall record the net proceeds, i.e., after deducting the expenses and
shares stipulated in Section 4.2 and Section 4.3, respectively,
separately as a Special Account in the General Fund. For this purpose, a
separate Special Account shall be established for each of the
individual agencies, as follows.
4.5.1 35% for the account of the
Armed Forces of the Philippines and the Government
Arsenal;
4.5.2 27.5% for the account of the
Bases Conversion Development
Authority;
4.5.3 12% for the account of the
National Housing Authority, National Home Mortgage Finance Corporation
and Home Insurance and Guaranty
Corporation;
4.5.4 3% for the account of
the Philippine Health Insurance
Corporation;
4.5.5 5% for the account of
the Department of Public Works and Highways and Department of
Transportation and Communications;
4.5.6 2%
for the account of the Philippine Veterans Affairs
Office;
4.5.7 1% for the account of the
Commission on Higher Education;
4.5.8 2%
for the account of the Department of Science and
Technology;
4.5.9 1% for the account of the
Office of the Secretary, Department of Justice and the
Ombudsman;
4.5.10 2%, but not to exceed two billion
pesos, for the account of the National Bureau of Investigation, Bureau
of Corrections, Philippine National Police, and the Bureau of Jail
Management and Penology;
4.5.11 1%, but not to exceed
one billion pesos, for the account of the Supreme Court of the
Philippines and the Lower Courts, Sandiganbayan, Court of Appeals and
Court of Tax Appeals;
4.5.12 2% for the account of
the Department of Education, Culture and Sports and Department of Social
Welfare and Development;
4.5.13 1/2%, but not to
exceed five hundred million pesos, for the account of the Department of
Labor and Employment;
4.5.14 1% of the account of the
Department of Social Welfare and Development;
4.5.15
3% for the account of the Mount Pinatubo Assistance, Rehabilitation and
Development Fund; and
4.5.16 2% for the account of
the Philippine Economic Zone
Authority.
4.6 The individual Special
Accounts shall be utilized exclusively for the purposes for which they
have been established as prescribed under Section 8 of RA 7227 as
amended by RA 7917. The DBM shall program the annual utilization of the
proceeds of sales consistent with the approved fiscal program of the
government and shall release the share of each of the beneficiary
agencies in accordance with specific budget execution
guidelines.
4.6.1 In the case of the Special Account created for
two or more Departments or agencies but no specific allocation for each
of the agencies is provided under RA 7917, as mentioned in Section 4.5,
utilization of the same shall be contained in a Memorandum of Agreement
between the departments and agencies
concerned.
4.6.2 The utilization of the
Special Account created for the Mount Pinatubo Assistance,
Rehabilitation and Development Fund referred to in paragraph 4.5.15
shall be subject to the approval of the Mt. Pinatubo Commission,
however, the funds for the projects may be released directly to the
implementing agencies.
4.6.3 In the case of
the sale of a portion of Fort Bonifacio, BCDA may be reimbursed an
amount to defray its obligation incurred prior to the enactment of RA
7917, for housing construction to relocate the squatters which shall be
charged against the 12% share of the National Shelter Program but shall
in no case exceed 50% of the said
share.
4.6.4 In cases where there have been
releases made from the proceeds of the sale of Fort Bonifacio to
departments by way of Presidential Directive prior to the issuance of
this IRR, such released amount shall be considered/treated as advance
releases. Such amount shall be reimbursed from whatever share the said
department may have from their respective allocation out of such
proceeds.
4.7 The Special Accounts herein
established shall be considered as sources of funding for the purposes
enumerated in RA 7917 and not as additional appropriations to other
appropriation sources intended for purposes similar to those enumerated
in the same Act. However, for CY 1995, in cases where an appropriation
for the purposes enumerated in RA 7917 has been provided under the
General Appropriations Act, said appropriation shall first be obligated
prior to the release of funds against the special account except if the
appropriation in the GAA refers to a regular program of the
department/agency.
4.8 All expenditures chargeable
against the individual Special Accounts shall be included in the program
of expenditures of the national government and the local government
units concerned. However, the appropriations will not be reflected in
the General Appropriations Act. For this purpose, all agencies shall
prepare and submit to the Department of Budget and Management, a request
and such other documents as may be required detailing the items of
expenditures. This request shall include both the quarterly obligation
and cash program requirements of the beneficiary
agency.
4.9 Beginning 1996, all expenditures shall be
included in the over-all expenditure program of the agency concerned
following the regular budgetary process. Proposed programs and projects
to be funded under RA 7917 shall be evaluated against the overall
requirements of the agency.
4.10 All agencies shall
submit periodic reports to the Office of the President, copy furnished
the Department of Budget and Management and the Department of Finance on
the status of funds utilization in accordance with the provisions of
DBM Circular Letter No. 92-6 June 27,
1992.
5.
EFFECTIVITY
This
Order shall take effect fifteen (15) days following publication in two
(2) newspapers of general circulation.
Adopted: 08
Jan. 1996
(SGD.) FIDEL V.
RAMOS
President
By
the President: