Abalos: LGUs need confidential funds

MANILA, Philippines — Local government units (LGUs) need confidential funds as they regularly deal with peace and order problems in communities, Interior Secretary Benhur Abalos said yesterday.

In an interview with The STAR, Abalos said LGUs are allowed by law to have confidential funds as part of their peace and order and public safety plans (POPS-Plan).

“My opinion about this is as long as it is not abused and strictly used in accordance with the intention of peace and order, for me this is just fine. As long as it is not abused,” he said.

The former Mandaluyong mayor said the peace and order program of LGUs addresses a multitude of challenges, including crimes, terrorism and even threats to the environment and human security.

“As long as they follow the rigid procedure and requirements of the law, I think this confidential fund is needed on the ground. I myself have been there as mayor,” he said.

“If we are going to look at this, LGUs are confronted with these issues every day. If this is going to be used with the intention of the law and peace and order I’m really fine,” he added.

The head of the Department of the Interior and Local Government (DILG) said that local governments, which have peace and order as a priority concern, are allowed to have the confidential fund.

He said DILG memorandum circular 2022-118 that sets guidelines for the development and formulation of the POPS-Plan of LGUs allows confidential funds.

Abalos also cited a 2015 memorandum signed by the DILG, the Department of Budget and Management, the Commission on Audit, the Department of National Defense and the Governance Commission for GOCCs.

Under MC 2022-118, the confidential fund refers to the lump sum amount provided in appropriation ordinances for LGUs to be used for confidential expenses.

This fund should not exceed 30 percent of the total annual amount allocated for the local government’s POPS Plan.

Abalos said they would have the reports on the confidential fund checked when asked if all LGUs were able to comply with this limit.

Still, the DILG chief maintained that the accountability measures and safeguards are in place to ensure against abuse.

While Abalos defends the need for