Abalos reminds LGUs not to buy 'luxury cars'

The leadership of the Department of the Interior and Local Government (DILG) reminded local chief executives not to acquire or use luxury vehicles for their operations.

In a statement, DILG Secretary Benjamin Abalos Jr. said that the provincial governors, city or municipal mayors, punong barangays, and Sanggunian members are prohibited on buying such for official functions.

He said the procurement of motor vehicles should be done in the most efficient and economic manner with due consideration on vehicles that are cost-effective, fuel-efficient, environment-friendly, and at par with improvements and developments in the automotive industry and relevant technology.

He also said that officials much observe strict compliance with budgetary, procurement and auditing laws, regulations and standards at all times.

“Manatili po tayong matipid sa pagpili ng sasakyan lalo na’t hindi pa tayo nakakabangon sa masasamang epekto sa ekonomiya ng pandemya ng COVID-19. Dapat po tayong maging halimbawa sa ating mga nasasakupan sa masinop na paggamit ng pondo ng bayan (let's stay economical in choosing a vehicle especially since we have not yet recovered from the bad economic effects of the COVID-19 pandemic. We must serve as an example to our constituents in the prudent use of public funds),” he said.

The DILG identified “luxury vehicles” as the following:

• Cars (sedan or hatchback) that run on engines with above 2,500 cubic capacity (cc) for gasoline and 3,500cc for diesel (or those with more than four cylinders)
• Passenger vans or pick-up type vehicles with an engine displacement exceeding 2,500cc that is gasoline-powered or 3,000cc if diesel-fed or with an engine exceeding four cylinders
• Multipurpose vehicles and vans with an engine displacement exceeding 2,500 cc, if gasoline-fed or 2,800cc if diesel-fed (or with an engine exceeding four cylinders)
• Sports utility vehicles fitted with an engine of which the displacement is higher than 2,700cc if gasoline-fed or 3,000cc if it runs on diesel (or exceeding four cylinders).

Meanwhile Abalos said that the purchase of second-hand or reconditioned units — except for aircraft or seacraft — is also not allowed, regardless of the source of funds and approving authority.

On the issued DILG Memorandum Circular (MC) 2022-105, Abalos urged local government units (LGU) to dedicate a percentage of their vehicular requirements to the purchase of motor vehicles that are powered using alternative fuels taking into consideration the sustainability or power supply in the area of operation.

The DILG chief said that local chief executives may acquire motor vehicles and heavy equipment subject to specification limitations: specific-purpose vehicles such as ambulances, patrol and armored vehicles, fire trucks, prisoners’ vans; heavy equipment such as road construction equipment, cargo transport equipment, farm machinery, waste management or environmental sanitation equipment; locally-assembled, owner or passenger-type jeep; motorized boats; vehicles for mass transport; as well as motorcycles and three-wheeled vehicles.

“Please bear in mind that all motor vehicles intended to be purchased must not contain a brand name. Likewise, no post-purchase authority shall or could be issued by the Department under any circumstances,” Abalos said.

Further, he also said the purchase of assembled vehicles usually is allowed only when brand-new vehicles are not available in the locality, the cost of new unit is prohibitive due to the distance from the nearest market source; or where an assembled vehicle is deemed more durable as the design and type of parts used are made suitable to the road condition/terrain in the locality such as in remote barangays or municipalities. The acquisition of the said vehicles — which are not allowed to use surplus or reconditioned engines — is subject to the approval of the Secretary of Budget and Management.

According to him, LGUs with proposed acquisition of motor vehicles that are not under the approving authority of the local chief executive must seek prior approval from the Secretary of Budget and Management, the Office of the President, or the Secretary of the Interior and Local Government, on specific motor vehicles as may be authorized by designated approving authorities.

Meanwhile, Abalos said that LGU can opt for vehicle rentals should it be more economical, expedient and convenient than the outright purchase.

Photos from Ruben D. Manahan IV, Department of Local Government

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