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PIA Press Release
2009/02/04

DILG says "STOP" to LGU luxury vehicles

by Jemin B. Guillermo

Roxas City (4 February) -- The government is now prohibiting the local government units (LGUs) to acquire and use luxury motor vehicles.

Interior and Local Government Secretary Ronaldo Puno said that all LGUs are prohibited from acquiring and/or using luxury vehicles like Sports (SUVs) and Asian Utility Vehicles (AUVs) for their operations.

Puno, in the DILG press release, explained that the prohibition is contained in Administrative Order No. 233 issued by President Gloria Macapagal-Arroyo last year.

He explained that the objective of said Order is to judiciously utilize government resources.

According to him, LGUs should always be guided by the principles of functional suitability, affordability and practicability when acquiring government motor vehicles.

Under AO 233, "luxury vehicles" are described as any motor vehicle with the following specifications and with an engine exceeding 4 cylinders: car (sedan or hatchback) with an engine displacement exceeding 2200cc for gasoline or 3000cc for diesel; passenger van or pick-up type vehicle with an engine displacement of more than 2200cc for gasoline or 3000cc for diesel; crossover utility vehicle (CUV)/ multi-purpose vehicle (MPV)/ Asian Utility Vehicle (AUV) with an engine displacement higher than 2000cc for gas or 3500cc for diesel; and Sports Utility Vehicle (SUV) with an engine displacement of more than 2700cc for gas or 3000cc for diesel.

Puno, in a memorandum circular to provincial governors, city and municipal mayors, said that a concerned LGU should first seek the approval of the Office of the President for the acquisition of the said luxury vehicles, including all types of aircrafts and seacrafts, regardless of funding sources.

He said that all LGUs should also account for all their motor vehicle units, prepare a disposal program for all luxury motor vehicles and submit a report to the Department of Budget and Management and the Office of the President, through the General Government Administration Office.

He added that the concerned LGUs shall then proceed to immediately dispose of such vehicles by public auction or sale in compliance with applicable laws, rules and regulations.

Puno stressed that all proceeds from such sale shall be turned over to their respective local funds and shall be automatically appropriated for the purchase of new ones, subject to the provisions of AO 233, and for the repair of existing serviceable vehicles. (PIA) [top]

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