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PIA Press Release
2009/02/06

DILG warns LGUs against acquiring, using luxury vehicles

Tacloban City (February 6) -- Local Government Units are prohibited from acquiring and using luxury vehicles like Sports and Asian Utility Vehicles, for their operations, the Department of Interior and Local Government said.

The prohibition on the acquisition and use of luxury vehicles is in line with the objective of utilizing government resources judiciously and is clearly provided for in Administrative Order No. 233 issued by the Office of the President last year.

AO 233 defines a "luxury vehicle" 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.

In a memorandum circular to provincial governors, city and municipal mayors, DILG Secretary Puno said 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.

LGUs should always be guided by the principles of functional suitability, affordability and practicability when acquiring government motor vehicles, Secretary Puno said.

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.

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.

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.

Under the Presidential directive, local chief executives, including punong barangays, are likewise authorized to approve the acquisition of the following types of motor vehicles to be sourced from unencumbered local funds: specific-purpose vehicles, such as medical ambulances, military and police patrol vehicles, armored vehicles, prisoners' vans and fire trucks; heavy equipment such as road construction equipment, cargo transport equipment, farm machineries, waste management/ environmental sanitation equipment, and similar vehicles/ equipment; locally assembled owner- or passenger-type jeep; motorized bancas/boats; vehicles for mass transport when necessary in the interest of public service; and motorcycles and tri-wheel vehicles.

LGUs should purchase at least 50 percent of their mobility requirements using alternative fuels such as biofuels-ready vehicles that run on higher blends, flexi-fuel, natural gas, solar and electric vehicles. (PIA 8) [top]

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