January 20, 2000 NEWS RELEASE

The Union of Local Authorities of the Philippines led by Laguna Gov. Joey Lina today branded as "untrue, misleading, and malicious" published reports that local government units (LGUs) were spending up to 20 percent (about P24 billion) of their internal revenue allotment (IRA) for junkets or out-of-town study tours.

ULAP officials said that it was improbable for LGUs to use their IRA for the "Lakbay Aral" program since the General Appropriations Act of 1999 and Department of Interior and Local Government memo circular 99-66 issued April last year by then Secretary Ronaldo Puno specifically prohibits the use of such funds for trainings and seminars of local officials.

They said that if ever such activities were held, these were funded from locally-generated fund sources and not from their IRA.

They cited paragraph 2 of MC 99-66 as follows: "Employable skill-oriented trainings in support of job generation and livelihood promotion efforts may be funded out of the 20 percent Development Fund. Provided, that the 20 percent Development Fund, or a portion thereof, shall not be utilized for local government internal capability-building trainings, seminars or study tours of local government officials or personnel."

Aside from skills training, other programs utilizing the said Fund are those on food security, anti-poverty, human and ecological security, solid waste management, housing, health care, roads and bridges, cooperatives and many others, ULAP executive director Sandy Paredes explained. She added the 20% Fund are also properly audited by COA and regularly monitored.

ULAP made the reaction in response to published reports that funds for the Lakbay Aral program, tapped from the IRA of LGUs, were being abused by some local officials who avail themselves of the funds to go on vacation trips.

Based on records of the Local Government Academy, an attached agency of the DILG, a total of a mere P1.9 million, not P24 billion as claimed by a report in the Malaya newspaper, was spent for the Lakbay Aral program for the period 1997 to 1998. In 1999, however, LGUs were prohibited from disbursing any amount from their IRA for the program, prompting some LGUs to support the program with locally-generated funds.

The same records indicate that a mere 8.7% or 52 of 594 Lakbay Aral destinations were in Baguio City contrary to published reports that most of the supposed "junkets" were held in Baguio.