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ADMINISTRATIVE ORDER NO. 236
ADMINISTRATIVE ORDER NO. 236 -
PRESCRIBING RULES AND REGULATIONS ON THE COLLECTION, REMITTANCE AND
UTILIZATION OF SALES PROCEEDS UNDER REPUBLIC ACT NO. 7227 AS AMENDED BY
REPUBLIC ACT NO. 7917
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 Sec. 29
(1) of Article VI and Sec. 22 of Article VII of the Constitution, as
implemented by Section s 44 and 45, Book VI of EO No. 292 and Section s
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 Sec. 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 Sec. 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 from 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 Sec. 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
Sec. 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 Sec. 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 Sec. 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 Sec. 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 Sec. 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 Sec. 1 (11) shall mean the judicial reform
programs of the Judiciary;
4.4.7 Sec. 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 Sec. 1 (14) shall mean the construction of
Senior Citizens Centers as determined by the DSWD; and
4.4.9 Sec. 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
Sec. 4.2 and Sec. 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% for 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 Sec. 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 Accounts 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 Sec. 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.
DONE in the City of Manila,
this 8th day of January in the year of Our Lord, Nineteen Hundred and
Ninety-Six.
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